The payback will vary with each installation. It depends on a properly sized system, and the amount of hot water used compared to the home's energy bill. But let use a retrofit application for an example. If the amount for the installation of a solar hot water system cost $7,000, then you would get a federal tax credit of 30% ($2,100) and a NC tax credit of $1,400. That brings the cost down to $3,500, and lets say in this example that the homeowner was going to have to replace the old water heater anyway, and his quote for that was $1,000 for a new 50 gallon electric/gas. That would make a $2,500 difference between a solar water system and a standard electric/gas change out. The big difference is this, where the standard electric is going to cost the homeower every month, the solar water system will save around 30%. If the average monthly energy bill is $165 x 30% = $49.50 savings times 12 months = $594.00 per year. If you divide the $2,500 it cost extra to install by the $594 yearly savings, the system will have paid for itself in 4 years! Just think, after that you are putting that $594 back into your pocket, instead of having an electric/gas water heater to pay for. For the next ten years your investment returns to you $5,490.00.
total cost - $7,000.00
tax credits - $3,500.00
cost of standard heater - $1,000.00
= $2,500.00
50 months @ $49.50 = $2,475.00 PAID FOR BY SAVINGS
for the next ten years you pocket - $5,490.00
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