A solar hot water system is more affordable and provides greater energy output, dollar for dollar, than any other form of renewable energy for your home. Solar hot water systems can be used for almost any type of hot water need.
The most common usages are for:
Domestic hot water like showers, tubs, dishwashers, clothes washing machines, also can be used with radiant floors or fan coils for conventional forced air finally
Pool and Spa Heating.
In the solar industry, a solar hot water system is referred to as a solar thermal system. Because the majority of homes use fossil fuel to heat water, a solar thermal system is a great way to reduce the cost of your homes gas bill. A solar thermal system can reduce your annual hot water cost by 80%, and payback can take place in as little as 4 years.
There are various ways to implement solar thermal systems, depending on how much hot water is needed and for what purpose, existing equipment, the climate zone of the installation, among others. The great thing about most solar thermal residential systems is that they usually only require 2 panels. This makes the installation very cost effective, fast to install and requires very little space.
Solar Thermal is in contrast to the electricity producing system which is referred to as a photo voltaic system or PV system. A PV system is used to reduce your homes electric bill. It is quite common for homeowners to use both types of solar PV and solar thermal, to dramatically reduce or eliminate their totals energy costs, both gas and electric.
The same 2009 30% federal tax credit applies to solar thermal systems just like the solar PV systems. New legislation was recently passed to eliminate the previous cap on the tax credit, and makes solar thermal get the same great tax advantage as PV.