Introduction – Incentivizing Renewables For Heating
Home solar water heater rebates are a government incentive to get people to switch from using traditional water heaters powered by natural gas, electricity, or oil to using solar water heaters. The rebate is given as a lump sum payment back to the solar water heater owner after installation and inspection of the system are complete. Solar water heater rebates vary from state to state, with some states offering more generous rebates than others.
A Solar Water Heater Is A Dedicated Water Heating System Using The Sun As Power
A solar water heater is a device that uses solar energy to heat water. It typically consists of the following (see image above too):
- Solar collector, which are like solar panels
- Insulated storage tank, to hold the water
- Control system (see below)
The control system is responsible for regulating the temperature of the water in the storage tank. This is done by controlling the flow of the working fluid, the amount of energy collected from the sun, and the amount of energy transferred to the water. The control system can also be used to turn the system off when not in use, in order to conserve energy and prevent damage to the system.
Benefits And Disadvantages Of Solar Water Heaters
Benefits of solar water heater systems include lower energy bills, reduced carbon emissions, and improved energy independence. Disadvantages of solar water heaters include the initial cost of installation, the need for regular maintenance, and the potential for leaks or other problems on the roof. Also, some people dislike the aesthetic appearance of the system on the exterior of their homes.
The Federal Tax Credit And Rebate For Solar Energy Systems
The US Federal government offers a tax credit for individuals who purchase solar water heater systems. This tax credit is designed to encourage the use of renewable energy sources like solar energy, and is available to those who meet the requirements outlined by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.
In addition to solar water heater rebates, other incentives may be available, such as tax credits or discounts on utility bills. Solar power systems can save homeowners a great deal of money on their energy bills, so these rebates can be quite valuable. This power systems are becoming increasingly popular as more people become aware of their environmental and financial benefits. Solar water heater rebates are one way governments encouraging this switch to solar power.
Note: the Federal program is not for swimming pools, only for a dwellings where occupants will live. If you’re interested in heating a pool with solar power take a look at a selection of solar oil pool heater.
Size Of The Tax Rebate Depends On Timing
The Federal Solar Energy tax credit offers a step-down value over time in the amount of the credit, depending on when the system is placed in service. It’s designed to make people switch as soon as possible because the credits diminish over the next few years.
For systems placed in service by December 31, 2019, the credit amount is 30%.
If the system is placed in service after December 31, 2019 and before January 1, 2023, the credit amount is 26%.
Finally, if the system is placed in service after December 31, 2022 and before January 1, 2024, the credit amount is 22%.
This step-down in the amount of the credit is designed to encourage the use of renewable energy sources like solar energy, and is available to those who meet the requirements outlined by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.
Eligible Systems To Qualify For A Solar Water Heater Rebate
In order to qualify for the solar water heater rebate program, applicants must provide proof of purchase for an approved solar water heater that is certified by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed, must show that at least half of the energy generated by the system comes from the sun, and must be used to heat water for use within the dwelling, not for swimming pools or hot tubs.
The solar water heater systems that are eligible are given at the Energy Star site here. There are 48 models that qualify as of Dec 2022. Be sure to select the ones that are “solar”. Within the solar types, there are two main subtypes: solar with electric back-up or solar with gas back-up. That’s right, there’s a back-up to these systems so that when there’s insufficient solar energy the system will rely on another power source so you have hot water. Each model comes with stats so you know how much power is generated and what is the size of the holding tank.
How To Apply For A Solar Water Heater Rebate?
The administrative entity that runs the solar water heater rebate is not the Department of Energy, rather it’s the IRS because its a tax credit. The webpage for how to apply with all the documents is given here:
Energystar Page On Applying for the Solar Water Heater tax rebate
You will need to fill out IRS form 5695.
- Form 5695 Instructions: https://www.irs.gov/pub/irs-pdf/i5695.pdf
- Form 5695: https://www.irs.gov/pub/irs-pdf/f5695.pdf
IRS Form 5695 is a form used to claim the Residential Energy Credits, which are tax credits that can be claimed for making certain energy-efficient improvements to a home. This form can be used to claim credits for solar energy systems, solar water heaters, and fuel cell property. It can also be used to claim credits for energy-efficient windows, insulation, HVAC systems, and certain appliances. The credits are available for both new and existing homes, as long as the improvements meet certain energy-efficiency standards. To claim the credits, homeowners must complete and submit IRS Form 5695, along with proof of purchase and installation of the energy-efficient product.
Warning: this is a long form!
Submit your form and supporting materials. After you’ve submitted your application, all that’s left to do is wait for approval from the utility company. You should receive your rebate check within a few weeks if everything is in order. In some cases, the rebate may be applied directly to your utility bill instead.
Other Types Of Rebates Available
You may be eligible for a rebate from your local utility company. Here’s what you need to know about qualifying for a solar water heater rebate.
First, check with your local utility company to see if they offer rebates for solar water heaters. Some utilities offer rebates of up to $1,000. To qualify for the rebate, you’ll need to purchase an eligible solar water heater and have it installed by a licensed contractor. In most cases, you’ll also need to submit proof of purchase and installation to your utility company.
Next, check if your state offers additional rebates or tax incentives for solar water heaters. States that offer tax rebates for solar heater systems include California, Colorado, Hawaii, Maryland, Massachusetts, New Jersey, New York, North Carolina, and Pennsylvania. Each state has different requirements for eligibility and rebate amounts, so it is best to research the specific requirements for the state of residence. But the situation is quite fluid and the types of systems that are covered are different everywhere. You’re best off checking the state government website for “energy incentives”.
Finally, make sure you factor in the initial cost of the solar water heater when considering whether or not to install one. Solar water heaters can range in price from $2,000 to $5,000, depending on the size and type of system you choose. However, with rebates and tax incentives, the net cost of a solar water heater can be much lower. In some cases, you may even be able to recoup the entire cost of installation within a few years through energy savings.
If you’re considering installing a solar water heater, be sure to research and take advantage of any rebates or tax incentives that may be available. With careful planning, a solar water heater can provide significant savings on your energy bills while helping the environment.
Things To Keep In Mind When Choosing A Solar Water Heater
One of the best ways to save money on your energy bill is to install a solar water heater. Solar water heaters rely on the sun’s energy to heat water, which you can use for tasks like showering, washing dishes, and doing laundry. However, a few things to remember when choosing a solar water heater.
First, consider the climate where you live. A solar water heater will be more effective if you live in an area with lots of sunshine. However, a solar water heater might not be the best option if you live in an area with cloudy skies or winters with little sunlight. ShinkThatFootprint has information on peak solar hours for every state, just do a search in the upper right corner. We also have a general solar hours table for the entire US which is only useful to look at seasonal changes.
Second, think about the size of your household. A small solar water heater might be sufficient for a single person or couple, but if you have a large family, you’ll need a larger solar water heater to meet your needs.
Finally, ask yourself how much hot water you typically use. A less expensive solar water heater might be all you need if you only use a small amount of hot water daily. However, investing in a higher-end solar water heater will pay off in the long run if you use a lot of hot water.
Keep these things in mind when choosing a solar water heater, and you’ll be sure to find the perfect one for your home.
Wrapping Up
In conclusion, solar water heater rebates are a great way to save money on your energy bill. Check with your local utility company to determine whether you qualify for rebates or incentive programs. Once you’ve gathered all the necessary paperwork, submit your application and await approval. If everything goes smoothly, you should receive your rebate check within a few weeks. Thanks for reading!
