In a Solar Thermal system, roof mounted Solar collectors circulate and heat water, which is then stored in a tank with an electric or gas backup. Solar hot water systems are also eligible for the 30% Federal Tax Credit. Depending on usage, a system will typically pay for itself in energy savings in 5-9 years.
If you’ve considered installing solar panels to save energy, but were put off by the upfront costs and South facing roof requirement, solar hot water may be worth a look. For every dollar you lower your home’s annual energy consumption, your property value is estimated to increase by $20- with no increase in property taxes. Energy efficient homes sell faster too.