Solar Thermal Hot Water – Costs and Benefits
Energy Grants for your Home
The return on your investment for your solar thermal hot water system depends on some key factors. For both solar thermal and solar PV, these include:
- Where do you live? Your return on investment for PV will be higher if you live in the sunny south west than north-east Scotland.
- Is the siting of your solar panels optimal? Partial shading (especially during the middle of the day) will reduce your return on investment.
- What is the cost of your installation? Higher installed costs mean a longer payback. Include any grant funding in your net cost calculation.
- What’s the overall system efficiency? A more efficient system at reasonable cost is better for your return on investment.
- What’s your current heating fuel? Payback is much improved if you are currently using oil, electricity or solid fuel for your water heating. Returns are lower if you use gas for hot water.
Typical returns on investment for solar thermal systems range from around 4% to 15% per year depending on the cost of your existing water heating fuel.
Now find out more about...
