There’s no better feeling than hopping into a nice hot shower or enjoying a comfy, heated home during colder months — except knowing the heating costs are almost non-existent! That’s why so many people are switching from traditional heating to using solar home heating. But before making the switch, it’s wise to first figure out how much solar home heating costs and whether it’s a good fit for your household.
In this guide, we discuss the pros, cons, and costs involved with different solar home heating systems – including installation, maintenance, and ongoing costs – so you can better decide the potential savings are worth it for you financially.
Types of Solar Heaters and Costs
There are three main types of solar heaters for the home – solar water heaters, solar pool heaters, and solar air heaters. The first two types of solar heaters are meant to heat water at home, while solar air heaters can serve as replacements for traditional gas-based heating systems.
The average cost to install each type of solar heating system for your home is as follows:
First up are solar water heaters, which are the costliest of the solar heating methods, but also can save you a huge portion off your monthly utility bills.
Next up are solar pool heaters, which benefit from being price-competitive compared to other types of pool heaters, and are often a lower-maintenance choice than other pool heater systems.
Finally, we have solar heaters. Rather than using solar for a whole-home heating and cooling system, a solar heater provides additional (or sole) heating for a specific room or rooms.
Solar water heaters tend to cost more to install compared to solar air heaters. However, all types of solar heating systems will result in significant energy and utility bill savings over time.
Costs of Solar Heating
One of the main things that you’ll need to consider when determining the cost of a solar heating system is the cost of the required equipment. The bulk of your expenses for your new home heating system is likely to come from the solar collectors that you purchase and have installed on your home. The cost of the units will range widely depending on the type that you decide on.
Cost for Solar Water Heater
The final cost for a solar water heater will depend on whether you choose an active or passive system, as well as the type of soar collector you use (bulk, flat plate, or evacuated tube). The price will also depend on the following:
- Location of installation
- Size of the heating system (i.e. the water tank)
- Permits required
As referenced above, a solar water heater costs approximately $9,000. A local solar contractor can give you a more personalized quote.
Cost for Solar Pool Heater
Solar pool heaters require the following pieces of equipment:
- Pool filter
- Solar collector
- Pool cover (can significantly decrease solar pool heating costs)
- Pump
- Control valve
The good news is that the price for all of these items is typically quite competitive compared to the price of other pool heater options, like using gas or a heat pump. Other factors that influence cost are the size of the pool, whether it is in-ground or above-ground, and where you live. The national average is $5,000.
Cost for Solar Home Heater
Like water heaters and pool heaters, solar home heaters come in several different varieties. You can have a passive system without fans or an active system with fans. Because a solar heater is distinct from a whole-home solar heating and cooling system, it can actually be integrated into your existing HVAC so that you are supplementing your existing heat with solar heat to a specific room or rooms. While a whole-home heating and cooling system can cost up to $30,000, a solar heater typically costs about $5,000.
Installation Costs
It’s common to pay around $70 an hour for the installation of a solar home heating system. With most systems taking several days to install, you should expect to pay a few thousand dollars to have it completed.
The size of the system and its complexity also helps determine the cost. The best way to estimate the cost of the solar heater is to have an expert help you figure out what type you want and need, and then get estimates from contractors in your area to figure out what your price range is. It’s the most accurate way to find out what you’ll pay—and one of the easiest as well. Make sure that each estimate details all the work that will be done as well, so you know what you’re paying for and can compare different providers effectively.
Operational Costs
Generally you don’t have many operational costs at all when running a solar heating system — which is one of the biggest benefits.
If you have a solar water heater that uses an active circulation system, there will be power cost to run the pump throughout the day. However, this will only amount to about $50 a year.
If you have an indirect system, you’ll have to replace the anti-freeze solution. Depending on the size of your system, this can cost you a few hundred dollars every three to five years.
Other than these very minor operating costs, you simply have to factor in standard maintenance, which shouldn’t cost much at all during the 20-year expected lifespan of the heating system.
Incentives
Both federal and state incentives and rebates exist for solar heaters. Taking advantage of these as much as possible will allow you to cut your expenses dramatically and make your home into a more affordable one overall.
The Federal Solar Rebate
The government will provide a rebate of up to 30% of a solar heating system’s cost when it’s professionally installed on a home. That means that you could cut the cost of a water heating system from $8,000 down to $5,600 using this one incentive alone. When combined with state incentives and tax credits, the system can become even more affordable.
State Incentives
The incentives available to you on the state level depend on where you live. Some states offer very lucrative incentives that further slash the price of the system further, or give a tax credit back at the end of the year, and others don’t offer much at all in the way of incentives. That’s why it’s important to check with your local utility companies to see what’s available in your area. For instance, in Arizona residents can receive a 25% tax credit on their system install up to $1,000, allowing them to drop the price of their system even further.
It’s important that you subtract the money that you’ll get from any incentives before deciding on the real benefit of a solar heating system. You’ll be surprised at how affordable it really is after incentives.
Savings
One of the main reasons to get a solar home heater is the money you’ll save on electricity or gas throughout the year. Each gallon of water that the sun heats up is a gallon that you don’t have to heat through other means. That means you’ll slash your utility bill each and every year.
The median level of savings is about $160 a year on water heating costs, but that’s just with a 40 gallon heating system. If you live in a location with above-average utility costs—or you decide on a larger heating system—the savings can be larger than that overall. Make sure to match the potential savings of a system versus the equipment and installation costs, minus the incentives that you get. This will give help to decide if it makes financial sense for you to have the system installed in the first place.
Additional Benefits
Helping the Environment
Not only can the system potentially save you money throughout the time that it’s operational, but it can reduce harmful effects on the environment. Whether it’s taking the place of natural gas or electric heating applications, you’ll cut down on the number of fossil fuels being burnt to heat your water, resulting in cleaner, earth-friendly energy.
Increased Home Equity
If you’re planning to sell your home anytime soon, improved home equity is yet another benefit of a solar hot water system. Studies show that while standard hot water heaters don’t increase the value of a home, adding a solar heating system will increase your home’s value by 25%. This means you can recoup some of that money back from the system if you decide to sell early, and you’ll enjoy the savings each year until then. This makes solar hot water heaters attractive even for people who will only remain in their homes for a decade or less.
Is the Cost of Solar Home Heating Systems Worth it?
After you take the time to get the estimates, price out solar equipment, and check for incentives, it’s time to decide if the system is worth it for you. Chances are good that the savings will more than pay for the system over the course of it 20 year expected lifespan, but it’s beneficial to calculate regardless.
In the United States the average cost of a solar installation ranges from $3,500 to $6,000. The average savings from a utility bill is about $280 for a family of four, according to Energy Star. An average installation cost—the median of the expected range—is $4,750. Subtracting the 30% federal tax credit—which amounts to $1425—drops the overall cost to $3,325.
If we assume that the system saves approximately $280 for the family each year, minus an expected operating cost of $80, you’ll enjoy $200 in savings each year, which amounts to about $4,000 over the lifetime of the system—and this would pay off by the time the system was ready for replacement. Of course, the system cost, maintenance, and overall savings will all vary depending on your water consumption, location, and what incentives you qualify for—but this cost breakdown is important if you have any financial concerns.
Taking your time to tally the installation costs and benefits will save you from any unexpected surprises down the road—and then you can fully soak up all the advantages of solar power!
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