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Course Title
100 Home
101 Introduction
102 FAQ Page
103 Course Catalog
104 Green World
105 Demand & Supply
106 Conservation Careers
107 Solar Careers
108 Wind Turbine Careers
109 Entrepreneurs
110 Employee or Employer?
200 Demand Management
201 Summary
202 Residential Energy Profile
203 Ten Conservation Rules
204 HVAC System
205 Kitchen Appliances
206 Water Heater
207 Lighting
208 Laundry Appliances
209 Calculating Savings
300 Renewable Technology
301 Solar Energy
302 Solar Collectors
303 Solar Water Heating
304 Stirling Engines
305 Basic AC-DC Electronics
306 Silicon Solar Panels
307 Thin Film Solar Panels
308 Wind Turbines
309 Inverters
310 Grid Tied and Off Grid
311 Solar Site Survey
312 Solar Site Diagram
313 Sun Path Chart
314 Site Survey Worksheet
315 Wind Turbine Site Survey
316 Wind Turbine Worksheet
400 Solar Thermal Design
401 Solar Heat Overview
402 System Configuration
403 Site Survey
404 SRCC Compliance
405 System Specification
406 Bill of Materials
407 System Installation
408 Solar Heat Incentives
409 Document Package
410 Future Products
500 Solar PV Design
501 Solar PV Overview
502 System Configuration
503 Site Survey
504 Grid Tied & Off Grid
505 System Specification
506 Bill of Materials
507 System Installation
508 Solar PV Incentives
509 Document Package
510 Future Products
600 Wind Turbine Design
601 Wind Turbine Overview
602 System Configuration
603 Site Survey
604 Grid Tied and Off Grid
605 System Specification
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Green Collar Careers - Solar Heating Incentives

Solar heating systems have been granted some significant economic benefits to offset costs to a point where every electric water heater should be replaced TODAY!

Federal Government tax credit per IRS Home Energy Credits:

  • Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaic, Fuel Cells
  • Applicable Sectors: Residential
  • Amount: 30%

With a typical solar water heating installation running about $8000 complete, the IRS has offered to chip in $2400.  Solar water heating property must be certified for performance by the Solar Rating Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.

State incentives are far more complex with a wide variety offered.  The Department of Energy has compiled a complete Database of State Incentives and Renewable Energy (DSIRE) that details incentives available state by state. 

Types of state incentives for solar water heating may include:

  • Utility Rebates generally $500-$1000; may be a check from the utility or a credit on future electricity purchase
  • Low interest no qualify loans up to 5 years
  • Property Tax exemption for up to the life of the system (on the average solar water heating systems add 50% of installed cost to value of home)
  • State income tax credits and deductions
  • County tax credits

Just based on the IRS 30% tax credit the following shows a value proposition for the typical customer with electric water heating:

Solar Hot Water System

$8,000

Electric Water Heater (Installed)

-$1,000

Federal Tax Credit

-$2,400

Net Homeowner Cost

$4,600

 

 

ROI Years at $500 a year

9.2

 

 

Added resale value to home

$4,000

If the customer sells their home in say 5 years, they not only recoup the $3400 in tax benefits and electric water heater upgrade, the resale value on their home is increased by $4000.  Over that 5 years the solar hot water system produced the equivalent of $1863 worth of electricity.  The homeowner would see a "net profit" of $1263 after 5 years!

 

Net System Cost -$4,600
Resale Value $4,000
5 Year Electricity Savings $1,863
Total return after 5 years $1,263

So what about the intangible value?  Homes with solar water heaters on average are on the market half as many days as homes with standard electric water heat.  Buyers want these homes, how do you put a value on that?