Solar energy is free. It will not go up in price and it won't run out.
It increases the value of your home.
It reduces your reliance on traditional energy sources and reduces your exposure to utility price increases.
The return on your investment is better than the stock market - 15 - 20% with the current tax incentives and rebates available.

The size and design of a solar water heating system is dependent upon the number of people it serves. A typical solar hot water heater for a family of four would consist of two 4' x 8' collectors and an 80 gallon storage tank. Depending on the complexity of installation, costs generally range from $9,000 to $10,000.

Rebates and Incentives

There is a federal income tax credit worth 30% of the cost of the system available to reduce the effective cost of a solar water heating system (there is no longer a cap on the tax credit).

In addition, for PA residents the PA Sunshine program now provides a possible rebate worth 35% of the cost of the solar water heating system. In August 2011, the PA Sunshine program went into waitlist status. This means you may receive a check from the state at some point after installation is completed if money is released from other non-completed projects. Alternatively, Exact Solar, a leading solar installer, has secured funding to provide you with an immediate, guaranteed $2,000 rebate off the price of your system if you'd rather not wait or rely on money becoming available from the PA Sunshine program. Either way, Exact Solar takes care of all required paperwork.

For NJ residents, there also may be an additional state rebate available depending on the type of hot water heater your currently have. Note that the illustration to the right includes the PA state rebate for Pennsylvania residents. The New Jersey calculations would be the same but with the omission of the PA state rebate, bringing the ROI down a little for New Jersey residents installing solar water heaters.