Solar Water Heater System Cost, Pros & Cons: Passive Vs. Active

If you’re considering installing a new solar hot water system on your home’s rooftop as an alternative to traditional heating options, then undoubtedly, some of the burning questions on your mind are about the differences between a passive and active solar thermal systems, costs, and pros and cons of each option.

Solar hot water system on the roof of a house.

To get right to the bottom line, here are the average costs of having a completely new solar hot water system installed on a typical residential rooftop.

Passive Solar Water Heat: $2,500 to $5,500 with an average of $3,500 before the 26% federal solar investment tax credits that are good through the end of 2022. These solar tax credits from the federal government will be reduced to 22% in year 2023.

Active Solar Water Heat: $7,500 to $10,000+ with an average of $8,700 before the 26% federal solar investment tax credits.

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Federal Solar Investment Tax Credits – All You Need to Know in 2021!

Federal tax credits for the installation of solar power equipment remain in effect, and there is significant money to be saved.

This guide to the Federal solar investment tax credits gives you what, how, and how much can be saved when you install solar electric panels or BiPV solar tiles aka solar photovoltaics or a solar hot water system on your residence. Saving money at tax time has never been easier – and this is a very good time to consider going solar.

What is the Federal Solar Investment Tax Credit?

Since Congress passed the Energy Policy Act of 2005, the Residential Renewable Energy Tax Credit has allowed homeowners to deduct a percentage of the installed cost of a solar PV system for their home. It was originally set to expire after 2007 but has since been extended several times. The current expiration date is December 31, 2023. Will it be extended again? Probably, but it’s a risk to wait.

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