Are Solar Hot Water Systems Worth It?

The answer to this depends on how you currently heat your water: Electricity or Gas?

Upgrading from electric storage water heating

 If you currently have an electric storage hot water system, a breakdown of your household energy consumption will probably look close to this:

energy use of hot water

You can see that around 25% of your electricity bill is used to heat your water! Solar hot water will save you most of that electricity – and typically shave $400-$700 per year off your bill.

Payback can be as good as 7 years which is an ROI of about 15%. Pretty good these days, I reckon.

Upgrading from gas water heating

 Whilst upgrading to solar hot water from an existing electric system is pretty much a no-brainer for those looking to reduce their bills – the decision to go solar if your current water heating is gas requires a little more consideration.

A typical Aussie home with a gas water heater uses about 14,000MJ of gas per year to heat their water. This is about $420 worth of gas. Saving 80% of this is worth $336 per year. But… gas prices are expected to go through the roof over the next couple of years for these reasons. I expect residential gas prices to double. So you could well be looking at savings closer to $700 per year with if replacing a gas heater with solar hot water. This would give around a 6 year payback.

I personally believe that Solar Hot Water is one of the best investments you can make in your home’s energy efficiency. I have one on my roof next to a 6kW PV system and my last electricity bill was $33.

Learn more about solar hot water systems

 If you are considering solar hot water, here’s a rundown on what type of system you should get, how much they cost, and what size system you need:

If there is anything at all that you want to know about solar hot water, buying a system, maintaining your panels, or anything else under the sun (pun intended) – just contact us we are really, really friendly and promise to reply in Plain English.

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