Solar Hot Water Payback periods
One of the most exciting financial aspects of owning a Solar Hot Water Heater is not simply that it saves you money compared to other conventional hot water heaters, but rather that it saves you enough money in just a few years to completely pay for itself. Essentially, over the course of a few years, your new SunMaxx Solar Hot Water Heater will be free. How many home improvements can you really say cost you absolutely nothing in the end? Not many.
The time that it takes for a Solar Hot Water Heater to completely pay for itself is known as the System’s Payback Period. All Solar Systems; Solar Hot Water, Solar Electric (PV), and most other Renewable Energy Technologies, have Payback Periods – in other words, like your stock portfolio or savings bonds, they are investments in the future – investments in knowing that sometime within the next few years, you are going to be getting something for nothing.
Check out how your investment in a SunMaxx Solar Hot Water System stacks up (and outpaces) other common (and popular) investment classes:
Calculating the payback period of a SunMaxx Solar Hot Water Heater can be complicated when taking into account all of the factors that may have the tiniest part in the cost and payment of your Solar Hot Water Heater. Here is a short list of the factors that must be taken into account when determining the payback period of your SunMaxx Solar Hot Water Heater:
- Cost of SunMaxx Solar Hot Water Heater
- Cost of Solar Hot Water Balance of System Components
- Cost of Installation
- Current Electric or Fuel Cost of Water Heating
- Annual Increase in Electric and/or Fuel Costs
- Percentage of Heating Cost Transferred to Solar Hot Water Heater
- State Incentives, Credits and Rebates Available
- Federal Incentives, Credits and Rebates Available
- Interest on Financing Loan (if using a loan or mortgage to purchase the system)
With these determinants, it is possible to work out the payback period of your new SunMaxx Solar Hot Water Heater. Here is an example of a typical Payback Period Calculation for a standard SunMaxx Solar Hot Water Domestic Hot Water installation:
|SunMaxx Solar Hot Water Heater:||80 – 120 Gallon Pre-Packaged||$3,999.95|
|Total Installed Cost||$5,319.95|
|Federal/State Incentives:||California – Solar Hot Water||$1,500.00|
|Federal Res. (30%)||$1,146.00|
|Cost of System after Incentives:||$2,673.95|
|Estimated Annual Savings:||$600.00|
|Electrical Cost Increase Rate:||Not Figured|
|Payback Period Calculation Chart:|
|Year||Annual Savings||Remaining System Cost|
As you can see, the SunMaxx Solar Hot Water Heater in the above example has a payback period of 5 years. Also, please note that the increase in electrical prices (the standard for this home’s previous hot water heater was not figured, and therefore, the payback period was actually lower because of those electrical rates.
Also, please note that this is only an example, given for you to see how the payback of SunMaxx Solar Hot Water Heaters are calculated, and you own installation costs, electrical costs and increases, annual savings, and incentives may vary, meaning that your specific payback period may increase or decrease. Typically, however, a SunMaxx Solar Hot Water Heating System has a payback period of 4 to 10 years, though actual results may vary.