Solar Thermal Water Heating Systems use the sun's energy to heat water for use by homes, commercial buildings and swimming pools. While some solar collectors look like solar photovoltaic panels, they are quite different. Solar thermal panels do not generate electricity, but simply absorb sun's heat.
The cost of the system is broken down into the following components:
Some states offer additional rebates for installing solar hot water systems.
Annual returns on investment can range from 5% to 15% for residential systems, to 10% to 40% for commercial systems.
Factors that drive the amount of savings are:
Returns are even more attractive when installing solar hot water systems in new homes and commercial buildings
Several financing options are available to finance an investment in a solar hot water system.