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What Is a Solar Hot Water Heater? (2024 Guide)

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Author Image Written by Tamara Jude Updated 12/09/2024

Solar water heaters harness the sun’s abundant energy to provide hot water for your home. They’re an eco-friendly and cost-effective solution offered by many of the top solar companies, and they don’t require a full solar system to function. This means you can reduce your carbon footprint and lower your energy bills without installing a large array of rooftop solar panels. 

Our guide explains how solar water heaters work, the different types available, and whether this technology is a good investment for your home.

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3 Best Solar Companies of 2024

Most Reputable : Blue Raven Solar
Best Northeast Regional Installer : Venture Solar
Best East Coast Installer : Solar Energy World
Best Solar Leasing : SunRun

What Do Solar Hot Water Heaters Do?

Similar to the way solar heating functions, solar water heaters use solar power to produce hot water. They can either supplement your existing water heater, significantly reducing your reliance on fossil fuels, or completely replace it. With a solar water heater, you’ll enjoy lower monthly energy bills and a smaller environmental footprint—plus all the hot water you need for bathing, laundry, cooking, and radiant space heating.

To learn more about how solar water heaters work and what goes into installing one, check out the video below with plumbing and heating expert Richard Trethewey and contractor Bob Dudley:

Company Star Rating Warranties Payment Options Link
4.4
10–25 years Full purchase, loan GET QUOTE
4.2
25 years Full purchase, loan, lease GET QUOTE
4.4
25–30 years Full purchase, loan, lease, PPA GET QUOTE
4.5
10–25 years Full purchase, loan, lease, PPA GET QUOTE
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Types of Solar Water Heaters

There are two types of solar water heaters: active and passive. Active systems use circulating pumps and controls to move water or heat-transfer fluid, while passive systems rely on the sun’s heat and natural convection to circulate water. Each type can be further broken down into two subtypes, which we explore below.

Active Solar Water Heating Systems

Active solar water heating systems come in direct or indirect circulating systems. They are more efficient than passive systems, but also more complex.

  • Direct circulation systems: These systems use pumps to circulate household water through the collectors and into the home. A direct circulation system is ideal for climates that rarely experience freezing temperatures.
  • Indirect circulation systems: This system uses pumps to circulate a non-freezing heat-transfer fluid, such as antifreeze, through the collectors and a heat exchanger. This process heats the water, which then flows throughout your home’s plumbing. Indirect circulation systems are better for cold climates prone to freezing temperatures.

Passive Solar Water Heating Systems

Passive solar water heating systems have a simpler design with fewer moving parts, which can lead to lower maintenance costs. However, they are less efficient in cold climates. The two types of passive systems are integral collector-storage (ICS) and thermosyphon systems.

  • ICS or batch systems: These systems work best in areas where temperatures rarely fall below freezing. We recommend this passive system for households with significant daytime and evening hot water needs.
  • Thermosyphon systems: With these systems, water flows through, and warm water rises as cold water sinks. The collector, located below the storage tank, helps the warm water rise into the tank. These systems are reliable, but they have heavy storage tanks that not all roofs can support.

Solar Hot Water Heater Cost

The cost of a solar water heater varies depending on the type of system, tank size, location, and other factors. According to our research, solar water heater installation costs between $1,800 and $5,800,* or $3,700 on average. However, most solar water heaters qualify for a federal tax credit worth 30% of their cost. This program stays in place until 2033, after which the credit drops to 26% in 2033 and 22% in 2034. Unless Congress intervenes, the credit will expire in 2035.

Many states and municipalities provide additional incentives for solar water heaters, such as rebates, property tax exemptions, sales tax exemptions, and tax credits. Some utility companies also offer rebates or incentives to encourage customers to switch to solar water heaters. You can learn more on the Database of State Incentives for Renewables & Efficiency (DSIRE) website.

We suggest contacting a professional solar company to learn what the project will cost you. Reputable solar installers will also be knowledgeable about available incentives in your area and can help you navigate the application process.

*Cost data sourced from contractor estimates used by Angi.


Are Solar Water Heaters Worth It?

Solar water heaters provide many benefits, from significant cost savings to a reduction in your carbon footprint. Below, we explore why solar water heaters are worth it.

  • Cost savings: Similar to solar panels, solar water heaters harness the sun’s free and abundant energy to reduce your water heating expenses, which account for about 18%.
  • Eco-friendliness: Embracing a solar water heating system advances environmental sustainability and clean energy. Using renewable energy reduces greenhouse gas emissions and reduces your reliance on fossil fuels.
  • Energy efficiency: Solar thermal systems maximize energy efficiency. Modern solar collectors are highly efficient, ensuring optimal performance and effective yearly water heating.
  • Reliability: Manufacturers design solar water heaters to be reliable and durable, often built to withstand harsh weather conditions. With proper installation and regular maintenance, these systems can provide reliable hot water for up to 20 years. That’s roughly five to 10 years longer than conventional water heaters.
  • Return on investment (ROI): While the initial investment in a solar water heater is hefty, it provides long-term returns. With reduced energy bills and government incentives available in many regions, the system pays for itself over time. Most solar water heaters have a payback period of roughly two years.
  • Versatility: You can integrate solar water heaters into existing homes and new construction projects. They can work in tandem with conventional water heaters, or they can function as stand-alone systems. Additionally, various system configurations are available to suit different climates and household sizes, making solar hot water heaters a versatile and adaptable choice.

Hidden Costs and Downsides of Solar Water Heaters

While a solar water heater offers numerous benefits, it’s crucial to understand its potential challenges and hidden costs to ensure it’s a sound investment for you.

  • Backup heating system: Solar water heaters may require a backup heating system, especially during prolonged periods of low sunlight or high hot water demand. A technician may suggest an extra gas or electric water heater backup system to ensure a continuous hot water supply. This addition increases the overall installation cost and your energy consumption.
  • Maintenance: Solar water heaters are generally low maintenance, but inspections and maintenance every three to five years are necessary to ensure optimal performance. Components such as pumps, valves, and storage tanks may require occasional repairs or replacements over the system’s life span.
  • Sunlight availability: Solar water heater efficiency relies heavily on sufficient sunlight exposure. The system’s performance may be compromised if your property is surrounded by shading from trees or buildings.
  • Upfront cost: While long-term savings can be significant, a solar water heater’s initial investment is higher than a conventional water heater. We recommend assessing your budget and weighing it against the potential long-term benefits.

Our Top Solar Company Picks

Blue Raven Solar

4.4

Blue Raven Solar has one of the best reputations for reliability and trustworthiness. It has won awards for its team and CEO, and customer reviews report great customer service and prompt installations. The company also stands out for its in-house financing, which includes 18 months of free solar energy.

Out of all solar brands in the market, 6.5% of our survey respondents chose Blue Raven.

How We Scored Blue Raven Solar

Blue Raven received 4.4 out of 5 stars according to our rating system. The company scored the most points for its customer service reputation and warranty coverage. It also earned points for providing all standard solar panel services but lost some due to its limited financing options and lack of roof leak coverage.

  • Solar Equipment and Services (18 out of 25 points): Blue Raven offers solar panel and battery installation, active monitoring services, and energy audits. However, it doesn’t offer solar roofs, EV chargers, or additional roofing services. 
  • Warranty and Performance Guarantees (22 out of 25 points): The company offers top-of-the-line warranties, including a 25-year workmanship warranty. The company earned points fo providing a performance guarantee, but its guarantee is shorter than many other providers. However, it doesn’t provide any roof leak coverage. 
  • Brand Reputation and Professional Certifications (13 out of 15 points): Blue Raven has high customer review ratings on its BBB profile and other popular review sites. The company uses in-house installers but doesn’t ensure they’re NABCEP-certified, which made it lose some points in this category.
  • Financing Options (12 out of 15 points): Blue Raven offers some of the best in-house financing of the companies this list, but it limits this financing to solar loans. You may want to consider a different provider, such as Sunrun, if you’re looking for a lease or PPA.
  • Industry Experience (7 out of 10 points): Blue Raven has less experience than other providers, with only 10 years in the industry.
  • State Availability (7 out of 10 points): The company limits its service area to 19 states.

Warranty and Financing

Warranty

A Blue Raven system has a 25-year product warranty, a 10-year workmanship warranty, and a two-year production guarantee.

Financing Options

✔ Full purchase
✔ Loan

State Availability

Available in: Colorado, Florida, Idaho, Illinois, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nevada, North Carolina, Ohio, Oregon, South Carolina, Texas, Utah, Virginia, Washington

Reputation and Reviews

Blue Raven has won numerous awards from Comparably, a site known for its company culture and reputation reviews. It also ranked No. 20 on Glassdoor’s Best Place to Work in the USA in 2021.

Blue Raven is accredited by the BBB and currently holds an A+ rating. We noted that customers praised the knowledgeable staff and prompt installation but cited poor communication after completing projects. We analyzed several consumer reviews and found that some of these issues stem from the company’s financing department and third-party installers.

Read our review of Blue Raven Solar for more information.

Solar Energy World

4.4

Solar Energy World (SEW) is one of the most robust and well-regarded solar installation companies. It boasts several impressive features, such as its 30-year manufacturer’s warranty. Its service area is limited, and it doesn’t offer energy auditing services. We like that SEW discloses what solar panels it primarily works with and that the panels are from trusted, quality brands such as Qcells and Silfab.

Roughly 11% of our surveyed solar users purchased their system from Solar Energy World.

How We Scored Solar Energy World

SEW scored 4.4 out of 5 stars according to our methodology. The company received many points because of its warranty, which is longer than most other solar companies’ warranties. SEW offers a 30-year manufacturer’s warranty on all its solar panels and inverters, whereas many providers only offer 25-year warranties.

  • Solar Equipment and Services (18 out of 25 points): The company is an ideal option for many basic solar products and services, such as solar panels and battery installation. It lost points because it doesn’t install EV chargers or perform energy audits.
  • Warranty and Performance Guarantees (19 out of 25 points): SEW’s manufacturer and labor warranties are standout features, but the company doesn’t include any production guarantees with its work. 
  • Brand Reputation and Professional Certifications (15 out of 15 points): The company’s reputation is one of the best, with high BBB and Google Reviews ratings. We also found no active alerts or lawsuits.
  • Financing Options (13.5 out of 15 points): SEW offers all possible solar payment options but doesn’t provide an in-house financing department. 
  • Industry Experience (8 out of 10 points): The company has been in business since 2009, so it received most of the points in this category.
  • State Availability (6 out of 10 points): SEW limits its service area to eight East Coast states.

Pros and Cons

Pros Features an extensive solar product catalog with trusted brands Includes free active monitoring Hires NABCEP-certified installers and designers Cons Reviews mention communication issues with staff Warranty coverage varies by solar panel brand Doesn’t offer a power production guarantee

Warranty and Financing

Warranty

SEW offers a 30-year manufacturer’s warranty on all purchased solar panels and inverters. However, coverage varies by brand, and the company doesn’t guarantee them with every panel option. 

Financing Options

✔ Full purchase
✔ Loan
✔ Lease
✔ PPA

State Availability

Available in: Washington, D.C, Delaware, Florida, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, and Virginia

Reputation and Reviews

The company landed on Solar Power World’s 2023 Top Solar Contractors List in the No. 10 spot.

The BBB accredits SEW, and the company holds an A+ rating. Former customers praise the company for its professionalism, assistance with applying for financial incentives, and smooth installation process. However, some reported discrepancies in finances and scheduling.

Sunrun

4.5

We like Sunrun for its four financing options, including its unique leasing options if you don’t want to own your system. This stands out to us because the other companies on this list don’t offer as many options.

Prepaid and leased systems also include a 25-year warranty with system service and maintenance, ongoing monitoring, and theft insurance. The company even offers financing plans for quality monocrystalline solar panels and products from trusted brands such as LG.

How We Scored Sunrun

Sunrun earned 4.4 out of 5 stars based on our methodology. The company gained many points for its positive reputation, comprehensive leasing options, and well-rounded warranty coverage. It lost some points for is limited service selection.

  • Solar Equipment and Services (15 out of 25 points): Sunrun provides solar panel and battery installation but uses third-party installers. Though this is becoming an industry standard, in-house installers typically yield better communication and quality. The company also doesn’t provide roofing services or energy audits but does offer quality active monitoring assistance. 
  • Warranty and Performance Guarantees (19 out of 25 points): Sunrun offers quality warranties, such as its 25-year manufacturer and labor warranty, but doesn’t include a performance guarantee. 
  • Brand Reputation and Professional Certifications (13 out of 15 points): Sunrun has one of the higher customer BBB ratings we’ve encountered, and the company maintains an overall positive customer reputation online.
  • Financing Options (13.5 out of 15 points): The company doesn’t offer any in-house financing but provides more warranty coverage for customers interested in solar leasing than other providers, such as Palmetto.
  • Industry Experience (9 out of 10 points): Sunrun holds 17 years of experience in the solar industry, making it a veteran compared to a newer company such as Blue Raven Solar.
  • State Availability (8 out of 10 points): The company only serves 18 states.

Pros and Cons

Pros Provides system monitoring that signals issues with your system Offers diverse financing options to suit various budgets Provides EV and solar battery solutions Cons Limited online information on solar incentive disqualification with leases Requires added costs for the same coverage plans as leased and prepaid customers Varies solar battery availability by state

Warranty and Financing

Warranty

Sunrun backs its systems with a 10-year comprehensive warranty which includes product, roof penetration, and workmanship coverage.

Financing Options

✔ Full purchase
✔ Loan
✔ Lease
PPA

State Availability

Available in: California, Colorado, Connecticut, Florida, Hawaii, Illinois, Massachusetts, Maryland, Nevada, New Hampshire, New Jersey, New Mexico, New York, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, plus Washington, D.C. and Puerto Rico.

Reputation and Reviews

The company earned DroneDeploy’s 2022 Guardian of Safety Award for incorporating drone technology in its site assessments. In 2021 and 2022, Sunrun was recognized by Comparably with 14 awards. Its accolades include Best CEOs for Diversity 2022, Best Company Culture 2021, and Best Company for Women two years in a row.

Sunrun currently holds an A+ rating from the BBB and is accredited. Former customers praised the comprehensive coverage for leased systems but complained about delayed installations, poor customer service, and poor communication with project managers. Additionally, some customers note being confused by Sunrun’s leasing and PPA options, though they also mention Sunrun is willing to discuss and clarify these plans.

Our Conclusion

Installing a solar water heater can help you lower your energy costs, reduce your environmental impact, and enjoy reliable hot water for years to come. Although solar water heaters cost more than conventional ones, they offer long-term savings. Federal, state, and local incentives are also available to offset the initial cost.

Like other water heaters, a solar water heating system isn’t the most DIY-friendly project. We recommend hiring a solar company to ensure proper installation and optimal performance.

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FAQ About Solar Hot Water Heaters

How hot can water get with a solar heater?

Most solar water heaters can heat the water up to 180–200 degrees Fahrenheit, just like a conventional water heater. Passive systems generally have a lower max temperature than active systems, but how hot the water can get varies by model, sunlight intensity, and tank insulation.

Can I use a solar water heating system in place of my existing traditional gas or electric hot water system?

Yes, solar water heating systems can either supplement or replace your existing hot water system.

Do solar water heaters work at night?

Yes, most solar water heaters store the hot water generated during the daytime so they still work at night. In addition, most active solar water heating systems include backup heating elements to ensure hot water is available when there is no sunlight. The size of the tank and your hot water usage patterns determine how much is available at night.

Is it safe to drink water from solar hot water systems?

It depends. Solar hot water systems heat water, but they don’t purify it. As long as the water going into the system is potable, safe-to-drink water, the water coming out of the system will also be safe to drink.

To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.