Solar water heaters are placed on the roof,building wall or can be ground-mounted and absorb the sun’s energy to heat water, which is then stored in a water tank for later use. Some include a gas or electric water heating system for backup. Unobstructed Southern sky exposure is most optimal. Sometimes the solar collectors need to be tilted to face the sun, enabling a much more efficient solar water heating system.

California utility regulators have recently approved rebates of $350 million over the next 8 years to encourage the use of solar water heaters. The $1500 rebates could reduce the cost of these expensive solar water heater by 15% to 25%. Average systems cost from $7,000 to $12,000 for a 2-5 bedroom home. Rebates are retroactive to August 2009, so you can apply if you already had a system installed on your home.

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. California’s rebate is in addition to the Federal Energy Tax Rebate.

Water heating bills should drop 50%–80%, making payback times around 7-10 years after rebates. Solar water heating ystems should last for 25+ years. Gas rates many rise in the future, helping to shorten payback times.There has never been a better time to invest in green technologies than now!