California Center for Sustainable Energy

Pilot program & workshops contribute to solar water heating

Making the decision to install solar water heating, as part of new construction or as a retrofit, should become easier in 2010 as California implements the Solar Water Heating Efficiency Act, which would establish an estimated $368 million incentive program with the goal of installing 200,000 systems by 2017.

A two-year, pilot solar water heating incentive program administered by CCSE in the SDG&E service territory is supplying crucial information for the statewide program scheduled to begin in January. The pilot program shows that when consumers learn of SWH costs and benefits, they can be motivated to invest. The pilot program ends in December.

A little knowledge can assist in the decision to go with SWH, CCSE Energy Engineer Skip Fralick explains to a group attending a “Solar Water Heating Basics for Homeowners” workshop one evening in July.

Over the next two hours, Fralick guides his class through different SWH systems and their applications, combining 30 years of on-the-roof solar experience with the latest technical developments. Along the way, he injects humorous stories and personal observations, while fielding questions in what turns into more of an open discussion than a formal presentation.

Fralick points out that SWH is great way to conserve energy, reduce your utility bill, increase the value of your home and curb greenhouse gas emissions. He explains that SWH does not replace your existing water heater, because you still need it as part of the system and as a backup to solar. Of course, most people want to get right to the bottom line economics of SWH, and Fralick eventually does, but first he walks them through the basic components, five system types, freeze protection, over-heat protection and ten tips for hiring a contractor. You can download and review his presentation slides online at CCSE’s solar water heating documents website. There is also a free workshop for self-installer and contractor training. (http://energycenter.org/index.php/incentive-programs/solar-water-heating-pilot-program/ SWHPP-documents/cat_view/55-rebate-programs/172- SWHPP/175-presentations)

The economic factors of SWH involve system and installation costs, incentives and tax credits, decreased use of natural gas or electricity and protection against future rate increases. Because hot water use and system performance varies widely among individual homes and businesses, it is difficult to predict with certainty what savings will be and how soon a complete return on investment can be achieved.

Fralick uses an installed cost of $6,500 with an incentive rebate of $1,200 and a federal tax credit of $1,590, resulting in a net cost of $3,710. He then factors in the energy savings and a conservatively calculated utility rate escalation over 25 years. A solar system backed up by a natural gas water heater will reach the break-even point at around 13 years - an annual return of 6 percent. One that is backed up by an electric water heater will break even in around seven years for an annual return of more than 10 percent. If utility rates increase beyond conservative levels, the cost recovery times decrease quickly.

Installing SWH isn’t just about the economics – it’s also about the environment. When the same systems and use levels employed in the financial calculations are applied to the environmental impacts of SWH, it results in significant carbon dioxide (CO₂) reductions. Over its lifetime, a SWH system that offsets electricity saves more than 12 metric tons of CO₂, while a system offsetting natural gas saves more than 17 metric tons of CO₂.

Using solar water heating simply makes sense in California where sunshine is abundant and natural gas and electricity rates have steadily increased over the past ten years.

For more information, go to the CCSE solar water heating website. The “Solar Water Heating Basics for Homeowners” workshop is offered at least once per quarter.

NOTE: “Solar Water Heating Basics for Homeowners” will be presented at 6:00 p.m. on Thursday, Oct. 8, and Thursday, Nov. 12. Dinner will be provided. The workshops are free. Register here.

How Much Hot Water Do You Use?

The average American home uses about 260 gallons of water per day; however, during peak season, the average rises to about 1,000 gallons a day. Watering lawns and gardens account for much of this increase in usage.

(*American Council for an Energy-Efficient Economy)

Five Reasons to Install Solar Water Heating Now

1. Energy Savings – Heating water accounts for approximately 40 percent of a home’s total energy use. A solar water system can produce up to 80 percent of your annual hot water needs.
2. Eco-Friendly – Sunlight is abundant, forever renewable and inflation-proof. Your water heating will no longer rely completely on fossil fuels, and a well-maintained solar system lasts up to 30 years.
3. Reduced CO₂ – Solar water heating significantly reduces your carbon footprint.
4. New Financial Incentives –The 2009 American Recovery and Reinvestment Act gives federal tax credits of up to 30 percent of the costs of installing a solar water heating system. Best of all, CCSE provides rebates of up to $1,500 for San Diego homeowners and up to $75,000 for businesses. Note that the current San Diego pilot program ends in December 2009.
5. Get Committed - More San Diegans than ever before are installing solar water heating systems, because it’s an eco-friendly investment that increases the resale value of your home, while saving you money.

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