How Much Does a Solar Hot Water System Cost? Compare Prices & Rebates
Hot water alone accounts for a quarter of the total energy used in households, according to data from the Institute for Sustainable Futures. Together with the expected increases in energy prices, the effect of hot water spending shouldn’t be ignored.
In recent years, the development of solar technology and government incentives have made solar hot water heaters a viable means of reducing your bills and benefiting the environment. In this article, we will explore the cost range for the solar hot water heater and how Volteam will assist you in your journey to going green.
Solar Hot Water System Price
Typically, you can expect to pay between $3,000 and $8,000, including installation. However, the total amount may vary depending on the type of solar hot water heating system you require – heat pump, roof-mounted, evacuated tube collector, or heat pump system.
Additionally, the number of solar collectors or solar panels, installation complexity, location, and roof accessibility can impact the price.
Let’s take a look at the comparison of prices for these different types of solar hot water systems:
- Roof-mounted system: $3,800 – $5,400+
- Electric/gas-boosted split system: $3,900 – $6,000+
- Heat pump system: $3,800 – $4,500
- Evacuated tube collectors: $6,000+
Each of these comes with its own pros and cons, which we’ll explore here.
Roof-Mounted
These are a great option if you have a lot of roof space, and their larger size means the solar collectors and storage unit can cover from 50% to all of your hot water needs. The large solar panel-like collector captures the sun’s rays and heats water in an insulated tank. While affordable, they aren’t as effective in cooler climates.
Split System
If the roof space available is small, the split system will work just like the rooftop type, aside from the ground-level storage tank. More roof space will then be available, and it can be easier to access for maintenance.
The price of a solar hot water system may be a bit higher for such flat-plate collectors, but you can also depend on a gas booster or an electric booster in case you aren’t able to meet your demands for hot water.
Heat Pump System
This system functions by drawing solar heating energy that is present in the air, as opposed to heating water with solar power. The systems utilise a small amount of electricity, which is used to draw hot air, allowing them to operate effectively even in cool conditions.
Additionally, the fact that the collector systems need a boost when the sun isn’t out means that the collector systems may use more electricity. As a result, heat pump systems tend to use around 75% less energy than conventional electric water heaters, as they transfer heat from the air into your water.
Evacuated Tube Collectors
These systems use glass tubes with a vacuum seal to more efficiently capture sunlight and heat water. While very effective, they’re also the most expensive option for a solar hot water system.
Solar Hot Water Rebates and Incentives
Solar and heat pump hot water systems can benefit from both federal and state-level financial incentives. These can help lower the system price and improve overall return on investment. The value of your discount depends on the number of Small-scale Technology Certificates (STCs) that can be applied to a system.
This is determined by the system efficiency, installation location, and year. Rebates tend to decrease year on year as part of federal schemes, so the sooner you act, the more you’ll save.
STCs typically trade for between $30 and $40 each, depending on the aforementioned factors. So, for example, a system with 30 STCs at $35/certificate would lower your upfront cost by $1,050.
Solar and heat pump hot water systems can qualify for anywhere between 20 and 40 STCs. While there are no state incentives for Brisbane or Queensland at the moment, this could change depending on demand. You can check for the latest rebates and assistance through the government website.
Running Costs for Solar Hot Water Systems
Solar hot water systems can be an upfront investment, but the ongoing running costs are a lot lower compared to traditional electric systems. This means that over time, the substantial savings can offset your water heating bills massively.
Whereas the cost of operating an electric hot water system could amount to $1,015 to $1,442 per year in the case of a four-person family, a solar hot water system would cost between $305 – $450 per annum. This means it is possible to see a saving of more than $1,000 per year.
Replacing an electric hot water heater could have a payback period of five years or less, while a gas hot water heater could be replaced with a solar hot water heater and paid off in a period of five to ten years.
This is due to the fact that a hot water gas storage tank replacement might be more intricate. The installation costs might go higher due to factors such as new electrical circuits or connections.
What Kind of Solar Hot Water System Should I Get?
The different types of solar hot water systems work best depending on a number of factors. For example, it may depend on your home, needs, budget, and climatic conditions. In roof-mounted systems, it is important that your roof is large and strong enough to install the system, and if you must reinforce your roof as well, it may not pay off as it should.
Knowing what type of booster you may need as well will help decide which system will work best for you. Another factor that should also be taken into account is climate; flat plate systems are cheaper but less effective in cooler climates, whereas heat pumps are effective in all climates but more expensive.
Switching to solar hot water is a wise investment, as these systems can pay for themselves over a matter of years while lasting more than 20 years, which is a longer lifespan than conventional systems. If you’re interested in learning more about solar hot water system prices and your potential savings, contact Volteam today.
