Realizing Savings with Solar Hot Water Heater - My Experience

In summary: Chi Meson has just installed a solar hot water heater and received their third electricity bill. The bill shows that they have saved $158 so far. With a federal tax credit and credit from their local utility, they are on track for a four-year payback.
  • #1
Chi Meson
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For those interested, I have just received my third electricity bill after the installation of my solar hot water heater. Currently, I have realized at total of $158 "saved."

Putting that against ~$3500 of total cost, then somewhere between $1200 and $2000 federal tax credit , and the diddly-squat credit from Northeast Utilities, I am on target for a 4-year payback.

Caveat: I did the labor myself, which included 150 soldered joints, 20 threaded joints and 10 compression unions. I have to find out how much I can claim for the labor as a tax credit. A friend says I should claim $50 an hour at least. Anyone know any thing about writing off you own home labor?
 
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  • #2
Chi Meson -

If you were heating with electricity, you were doomed anyway. Gas water heating will not be far behind. I'm at at a utility company, we kinda know this stuff. The gas and electric traders are great for knowing current and projected contract prices for all kinds of energy. And buying someone lunch now and then pays off.

Generally, with fuel adjustment clauses being enabled everywhere, the outlook for ebill charges is they will go up by a minimum of 10% over the next year, countrywide. And gas costs per residential therm will be in the $1.00+ range by January.

Do not pay attention to money directly because in a while you will be comparing apples to sycamore trees. Due to rate inflation primarily from fuel surcharges and therm costs.

Compare consumption instead.

If you do not have a consumption graph on your bill, look at the kwh and the therms you used last last year for September, and then the year before. Those numbers matter, not the dollars. Example: In the SW average ebills will probably inflate by 10-20% in the next year. Texas is getting clobbered so badly there are folks who want to repeal the law that created open unregulated residential markets.

Some utilities, like Texas El Paso in New Mexico, saw a 50%+ increase per kwh because of fuel adjustments this past summer. TEP customers in Texas proper also had problems.

In actual dollars your payback is going to appear to happen later as your rates go up. But your real dollar savings will be a lot greater than you now estimate. You post in Maths and Physics, so you can work out why, I'm sure. Just work out your real cost per therm and kwh now, and use that as a baseline. Your return is going to be very worthwhile.

Wanna feel better: propane should be near $3.00/therm retail by mid-December as foreign oil prices soar and the dollar falls.. Propane: 1.087 gallons per therm at sea level. Above 3500' that number gets worse. I heat with propane (and wood pellets). I'm buying as much propane as possible this month. And I live at 6500'. Oh well.
 
  • #3
Jim,

actually I do get a nice bar graph comparing my kWh per day average for each month going back to the previous year. I am down to 16 kwh/day, from a high of 31 (August 06), and 28 for (October 06). I am aware of the upcoming surge(s) in energy prices, and have no problem justifying my decision to go solar. Still it's fun to actualize the savings.

I'm watching the heating oil prices too:
http://www.nevadagasprices.com/homeoil_chart.aspx

I've got 3 years of wood cut and split. I feel like Pa Engals. Not sure if that's a good thing.
 

1. How does a solar hot water heater work?

A solar hot water heater uses the sun's energy to heat water. It consists of solar collectors, which absorb the sun's heat and transfer it to a liquid, usually water or antifreeze. This heated liquid then flows through a heat exchanger, transferring its heat to the water in the storage tank. The heated water can then be used for domestic hot water or space heating.

2. Is a solar hot water heater cost-effective?

Yes, a solar hot water heater can be a cost-effective option for many homeowners. While the initial cost may be higher than a traditional water heater, the long-term savings on energy bills can make up for it. Additionally, there are often tax credits and rebates available for installing a solar hot water heater, making it even more financially beneficial.

3. What are the maintenance requirements for a solar hot water heater?

The maintenance requirements for a solar hot water heater are minimal. It is recommended to have a professional check the system every 3-5 years, but other than that, simple tasks such as cleaning the solar collectors and checking for leaks can be done by the homeowner. The system typically has a lifespan of 20-30 years, making it a low-maintenance and long-lasting option.

4. Can a solar hot water heater be used in all climates?

Yes, a solar hot water heater can be used in all climates. While it may be more efficient in areas with more sunlight, it can still provide significant energy savings in colder or cloudier regions. In fact, some systems are specifically designed for colder climates, using antifreeze instead of water to prevent freezing during winter months.

5. How does a solar hot water heater impact the environment?

A solar hot water heater is a clean and renewable energy source, meaning it has a positive impact on the environment. By using the sun's energy instead of fossil fuels, it reduces carbon emissions and helps to combat climate change. It also conserves water, as it does not require electricity to heat the water, reducing the strain on natural resources.

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