Domestic Hot Water Systems
How much does a solar hot water system cost?
The average cost of the systems range from between $5,500 to $7,000, and will depend largely upon the following factors:
- Number of people in the home or building
- Size and type of solar system
- Roof type
- Building code requirements
Will the solar system affect my hot water heater?
Yes – in a positive way! Given that the water heater will operate less frequently, solar will extend its life significantly.
Is there a tax credit for solar hot water systems?
You will receive a 26% tax credit (with certified equipment). The tax credit is set to decrease in 2023 to 22% and expire in 2024.
A taxpayer may claim a credit of 26% of qualified expenditures for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. The home served by the system does not have to be the taxpayer’s principal residence. The tax credit does not apply to solar water-heating property for swimming pools or hot tubs. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward.
For more information, please visit http://www.irs.gov/pub/irs-pdf/f5695.pdf or consult with your tax professional.
What about maintenance?
The simplicity of solar water heating systems means that maintenance is minimal. Required maintenance will depend on what type of system you own. Vasco Solar Energy hot water systems require almost no maintenance.
How do solar water heaters work?
In a solar water heating system, a heat-transfer fluid flows through the tubes of solar collectors, where it is heated and transfers the heat to the household water. The heated water is then stored for use in a tank. A solar water heating system can be used as the sole source for hot water or may include a back-up conventional system to meet heavy or unusual hot water requirements throughout the year. Systems are usually sized according to the number of bedrooms, people and household water needs. There are several different configurations of solar water heating systems. In general, however, there are two main types: active systems which have pumps and controls to deliver solar heat to the storage tank, and passive systems which combine the collector and storage in a single unit.