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Are Solar Water Heaters Worth the Cost in Florida?

Buying a solar water heater makes sense at first. You pay more upfront, but can cut your water heating bills by 50-80%.

Buying a solar water heater makes sense at first. You pay more upfront, but can cut your water heating bills by 50-80%.

But are those energy savings enough? Do they justify that high upfront cost of solar water heaters?
Let’s do the math.

Doing the math on solar water heating

First, let’s start with the cost of a solar water heater. With installation, a solar water heater costs between $3,935 (<80 gallon tank) to $9,654 (>120 gallon tank). The average cost is $6,766 (80 gallon tank).

To put things in perspective, an 80-gallon tank heats enough waters for a family of 5, according to FPL.

Please keep in mind that cost depends on many other factors. We suggest you get an estimate for a water heater that fits your family’s needs.

Once you get a solar water heater cost estimate, start subtracting incentives from it.

1) Subtract Federal tax credits from cost

Assuming you get an ENERGY STAR qualified solar water heater, your biggest price cut will be from the 30% federal tax credit. (This offer expires in 2016.)

2) Subtract local energy company rebates from cost

Rebates differ for each energy company:

For simplicity’s sake, let’s go with FPL’s rebate.

Now let’s look at how much you’ll save over its lifetime.

Solar water heaters: How much will I save each year?

Since Florida is so sunny throughout the year, the solar water heater rarely depends on its backup heating tank. So it’s efficient at saving you money.

According to Florida Solar Energy Center, a family of 4 using a solar water heater with an backup element could save $200-$300 a year in lower water heating costs.

A solar water heater lives about 20 years. So the family of four could save $4,000 to $6,000 over the solar water heater’s lifetime.

So let’s do the math:

$7000 to purchase & install solar water heater (average cost, rounded up)
-$2100 (30% federal tax credit)
-$1000 (FPL rebate)
-$4000 (low end of energy savings)
----------
-$100

That means the solar water heater pays for itself over its lifetime (and saves you another $100).

But wait! There’s more! An electric or gas water heater only lives about 10 years. So a solar water heater could also save you the amount it would cost to buy a whole new water heater!

Need help affording the upfront cost?

Now you know a solar water heater is worth it (especially in Florida). But the upfront cost can still be a barrier. That’s why many professional installers can give you affordable financing options to help you out.

Contact Plumbing Today to get a price estimate on a solar water heater.

Or check out our answers to common solar water heating questions.

Plumbing Today provides award-winning air conditioning service to Sarasota, Florida and the surrounding areas like Bradenton, Tampa  and Port Charlotte.