Incentives: What is the payback time for a solar water heater?
Answer
Payback times vary and are dependent on your utility rate, back up energy source used (gas or electric), type of solar hot water system, utility solar incentive and the homeowner’s ability to use the state or federal tax credits. For the typical homeowner the simple payback for an active solar hot water system is 3-5 years. For a passive solar hot water system the simple payback is 4-7 years.