Best Solar Water Heaters

Top Solar Water Heater Reviews

Tax credits help defray the cost of installing a solar water heater

Solar water heaters last at least 20 years (usually much longer) and are easy to maintain. Of all the Energy Star water heaters out now, solar units receive the best federal tax credit. To qualify for Energy Star certification (which is required for the tax credit), a solar water heater must have a solar fraction rating -- the percentage of the hot water load produced solely by solar energy -- of at least 0.5. The tax credit is 30 percent of the total installed cost with no dollar limit for a primary residence, second home and/or new home construction. For instance, if you spend $5,000 for a solar water heater, including installation, you can pay $1,500 less income tax that year, reducing the cost of the water heater to $3,500. If you don't owe that much tax the year you install the solar system, you can carry the unused tax credit forward for future tax returns through 2016. This is the only water-heater federal tax credit available for second homes or new homes under construction. Most states add rebates, tax exemptions and/or tax credits to further reduce the cost of a solar water heater.

Ultimately, experts say the cost effectiveness of solar hot water heaters depends more on state and local incentives than on your living in a very sunny part of the country. One review at Fine Homebuilding magazine notes that in Maine, a solar hot water heater for two people (with 32 square feet of collector area) could pay for itself in three or four years. Maine has long cold winters, but has better state incentives than sunny Florida, where Fine Homebuilding magazine editors estimate a savings of only about $74 to $110 for two people using a solar hot water heater. California and Hawaii also provide excellent state incentives for those interested in solar hot water heaters.

We found the best review of solar water heaters at ConsumerReports.org, where editors test four solar water heaters in comparison with regular tank-style water heaters. All solar water-heating systems contain collection, storage and transfer components, but many design options exist. Reviews say it's important to study the options carefully to pick the best one for your climate and situation. Some designs are relatively simple to build yourself, and kits are also available. Other solar water-heater systems require professional installation, and editors at ConsumerReports.org recommend professional help even for the do-it-yourself kits.

One new option, the A. O. Smith Cirrex (*Est. $1,650), looks promising partly because everything is already included. A. O. Smith partnered with Chromagen, which provides the solar collectors, to package an integrated turnkey system that includes the collectors, storage tank and everything else needed. However we could not find any reviews of the product.

One simple solar hot-water-heater kit, the Solar Roofs Skyline, was designed in conjunction with the Department of Energy and receives an enthusiastic review at the DOE website. The modules mount directly on the roof, and they're lightweight enough to make this relatively easy. The Skyline 10-01 solar panel (*Est. $300), which weighs just 19 pounds, is 6 feet long and provides 10 square feet of collection plate. The Skyline 20-01 (*Est. $560) is twice as long and weighs 38 pounds. Consumers can combine as many modules as they need to supply hot water for their climate. The warranty is for 10 years, and the mounting system is certified to withstand winds up to 150 mph. The Solar Roofs website shows how to configure different systems suited to your climate. For example, a closed-loop system circulates antifreeze through the system's tubes, protecting it from freezing. An open-loop system circulates water through the tubes, and is fine for climates that never fall below freezing.

Unless you are determined to install a solar water heater, reviewers say your first step is to find out what state and local incentives apply in your area. FindSolar.com provides an online calculator that takes government incentives into account, along with your current utility rates, to estimate the payback period for a solar water heater. Our Useful Links section provides links to many resources on solar water-heater designs, specifications and ratings, plus links to manufacturers' website and articles on making or buying a solar water heater.