Solar water heaters are placed on roofs and absorb the sun’s energy to heat water, which is then stored in a water tank for later use.  Some include a gas heating system for backup.

I took the picture shown above in southern China.  Solar water heaters are ALL over the place there.  They must be cheap and cost effective for such widespread adoption.

Solar Water Heater Requirements

Many of these are similar to Solar Electric site requirements.

• Un tree shaded area that is Southerly facing
• Amount of sun received in a day
• Temperatures that are not below freezing
• Enough roof space and angle.

California Solar Water Heater Rebates

California utility regulators have recently approved rebates of $350 million over the next 8 years to encourage the use of solar water heaters. California Solar Initiative (CSI) Thermal Program is the solar rebate program for California consumer that offers incentive rebates of up to $1,875 for solar water heating systems installed on single-family homes. Rebates are granted in the form of a one-time payment that is based on how much annual energy the system is expected to displace.

Water Heated by the sun.com is a website setup by California utilities to promote this product.

The 30% Federal Tax credit for EnergyStar rated solar water heaters could reduce the cost of these expensive solar water heater by 15% to 25%. The Federal Tax Credit expires December 31, 2016. Average systems cost from $6500 to $10,000 before rebates.  Rebates are retroactive to August 2009, so apply if you already had a system put in. Many other states have similar rebates.

Multifamily and commercial buildings are also eligible for special rebates up to $500,000. The goal is to add solar water heating to reduce natural gas use by about 200,000 single-family homes.

Local utility companies administer the rebate, so check with your local utility company. PGE has a page outlining the program that also covers San Diego Gas and Electric Rebates (SDG&E), Southern California Edison Rebates (SCE) or Southern California Gas (SoCalGas). These rebates are in addition to the Federal Tax Credit for solar water heaters.

The payback of a Solar Water Heater occur over a long period. Water heating bills should drop 50%–80%, making payback times at least 10 years after rebates. Systems should last for 25+ years allowing for a $8000 to $12000 savings over the 30 year life of the solar water heater. Gas rates many rise in the future, helping to shorten payback times. SEIA.org has a dealer locator for solar water heater installers.

It is cold, just in time for a crazy good rebate on heaters, insulation, and more. A very lucrative, new limited time California energy efficiency rebate is available where you can receive up to $4500 in rebates from Energy Upgrade California program. PG&E, SCE, San Diego Gas & Electric – SDG&E, or BVE. customers have this program available. This program is focused on a whole house approach to saving energy. San Francisco Bay Area information line 855-464-8484. This program ends in 2013.

The goal of the program is:

• Get rebates, financing, and incentives to reduce the cost of your home upgrade
• Reduce energy use
• Live in a more comfortable home

Even Larger Rebates

If you live in San Mateo County, you can receive up to an additional $500. San Francisco residents could receive an additional $1000.

Some Counties are even subsidizing the home energy audit costs.  Check with your local County.

Acterra has free energy audits for residents of:

• Atherton
• Los Altos Hills
• Monte Sereno
• Portola Valley
• Woodside

Funding for Energy Upgrade California comes from American Recovery and Reinvestment Act, otherwise known as Federal Stimulus Funds, California utility ratepayers, and private contributions.

Qualification:

• You must own a single-family home, commercial, or multifamily property and be a qualifying California utility company customer.
• You must be current on property taxes and liens.
• Participating contractors are specially trained for this program.
• There are 2 upgrade packages:

1. Basic Upgrade Package – 7 required measures (Air sealing, attic insulation, duct sealing, hot water pipe insulation, thermostatic shutoff valve, carbon monoxide monitor) that together could reduce your energy consumption by an average of 10%. Up to $1000 rebate.
2. Advanced Upgrade Package - A home energy audit which includes energy modeling must be completed by a certified energy auditor. A customized solution (Basic upgrade package plus high-efficiency furnace, energy-efficient cooling, water heater system, energy efficient Windows, duct replacement, wall insulation) with energy savings of 15 to 40%, with incentives from $1250 – $4000 depending on efficiency improvement. The amount of the rebate you get is based on energy modeling software that shows how much energy your home will save after an energy upgrade remodel.

Energy Upgrade CA approves the project after the audit is done and before the work is done.

A verification test is done after the work is finished by PG&E auditors.

Contact your qualified local contractor or Home Energy Audit firm via the Energy Upgrade CA website today to participate in Energy Upgrade California.

GreenPoint rating

If you add green measures to the Upgrade Package, your home may qualify for the GreenPoint Rated label and receive up to $1000. This validates that your home has been remodeled according to established green standards.

Be sure to take advantage of the Federal Tax Credit to receive additional money back in addition to those received under Energy Upgrade California!

Energy Upgrade California Analysis

Analysis done at the end of summer 2012, found that the Energy Commission paid out $40.9 million in rebates but spent $56.5 million in creating the program, marketing it, and administering it. Few cash poor consumers were willing to take the plunge. Banks were hesitant to lend money for this energy upgrade work. Stimulus money is now all gone, so energy upgrade California is being funded by our electric bills.

Utility companies have asked that this program be continued for another two years, but it remains to be seen if the California Public Utilities Commission will allow this.