Solar Hot Water Costs
Rebates and Incentives
- MassCEC offers rebates on solar hot water projects – about $400 per panel.
- Solar hot water projects qualify for a 30% Federal Tax Credit and a $1,000 State Tax Credit.
- Many solar hot water systems qualify for 0% interest loans through the HEAT Loan Program. The loans are available up to $15,000 (depending on utility) with terms up to 7 years. To apply for the loan, the customer must own and reside in a one-to-four-family residence and obtain a Mass Save Home Energy Assessment. You must also be a customer of National Grid, NStar, Unitil, WMECO or Cape Light Compact. Contact MassSave HEAT Loan – (800) 632-8300.
- Solar hot water systems offer a sound financial return on investment. According to the US Department of Energy, more than 1.5 million homes and businesses in the United States have invested in solar water heating systems, and surveys indicate that more than 94% of these customers consider the systems a good investment.
- Your ROI depends on how much hot water you use and how you heat your water now. People heating their water with electric gain the most by switching to solar; those heating with oil or propane also gain significant cost savings; and solar can be a good replacement for natural gas.
- Solar water heaters avoid the greenhouse gas emissions associated with electricity production. During a 20-year period, one solar water heater can avoid more than 50 tons of carbon dioxide emissions.
- Your solar replaces fossil fuels such as oil.