Residential Customers Guide to Solar Hot Water
A Solar Hot Water System (SHW) makes sense for LIPA residential customers who currently heat their water
with an electric hot water heater. By using solar hot water and energy efficient technologies and products in
your home you will:
Help the Environment and reduce your consumption of fossil fuels
Lower your monthly electric bills and save money
Use less electricity to heat your household water for the next 25 years or more
Water heating is the second highest energy cost in a typical household
after space heating. A typical LIPA residential customer who uses
electricity to heat their home’s hot water may save up to $600 annually
with a solar hot water system. And a solar hot water system can meet
a substantial portion of household hot water demand… a typical system
can deliver 60% to 70% of annual water heating needs.
LIPA’s valuable rebates combined with a 25% New York State tax
credit and a 30% Federal tax credit make solar hot water technology
more affordable than ever before. Contact a solar installer in your area
to find out if a solar hot water system is right for your home. Visit
www.lipower.org for more information on typical costs, rebate
information, program applications and a link to a list of solar hot water
installers. To participate in LIPA’s Solar Hot Water Program, you have
to have had an electric hot water heater installed for a minimum of 12
months prior to installation of the new system. This will be verified by
customer submittal of photographs of the existing system and the
nameplate showing date of manufacture.
Use the Sun to Heat Your Hot Water and Save Money
Solar Thermal hot water technology produces heat
energy, as opposed to solar photovoltaics (PV) which
Solar Hot Water systems include storage tanks and solar
collectors. “Active Systems” which have circulating
pumps and controls are the most common types used for
Long Island’s climate.
A typical Long Island single family, 4 person household
will need a 2 solar collector system which produces about
70 gallons a day.
A smaller home with 1 to 2 residents will need a single
collector system which produces approximately 34
gallons a day.
Energy Efficiency First
As always, when you consider incorporating renewable energy, you should first be sure that your home is
energy efficient. LIPA has residential energy efficiency rebate programs designed to help you save energy,
money and the environment whether you’re building a new home or replacing your appliances. LIPA can even
assist you with an energy audit program that will help identify energy efficiency opportunities and maximize the
performance of your renewable technology installation.
Help in Selecting a Solar Hot Water Contractor
For a contractor list, customers can contact LIPA’s Infoline at 1-800-692-2626. A list of contractors is also
available directly through the LI Solar Energy Industries Association (LISEIA) website at
LIPA’s Solar Hot Water Residential Rebate Program
LIPA’s rebate is $20 per kBTU. The maximum rebate is capped at $1,500 or 50% of the total installed cost,
whichever is less. System(s) must be oriented/installed facing South, Southwest or Southeast to be eligible for
a rebate. Rebates are on a first-come, first-serve basis.
Investment Tax Credits for Solar Hot Water Property
Residential customers can also apply for a 25% New York State Residential Tax Credit on net costs for qualified
solar hot water equipment up to a maximum of $5,000. In addition, there is a 30% Federal Residential Solar
Investment Tax Credit (no cap) available through December 31, 2016. For additional information on these tax
credits, please visit LIPA’s web site at http://www.lipower.org.
How Much Does a Solar Hot Water System Cost?
Costs will depend on your system’s configuration, your equipment options and other factors. Please remember
LIPA’s current SHW incentives and the New York State / Federal Tax Credit Programs can reduce the overall
costs of installing your SHW system.
Sample Cost for a two-collector SHW system with a 64 kBTU / day rating:
Average Installed Cost $ 9,200
LIPA Rebate ($20/ kBTU)* (1,280)
Net cost to residential customer $ 7,920
Less NYS 25% Tax Credit (capped at $5,000) (1,980)
Less 30% Federal Tax Credit (2,376)
Total Tax Credits (4,356)
Final Customer Investment $ 3,564
*Maximum rebate capped @ $1500 or 50% of total installed cost, whichever is less.
Estimated Annual $ Saved:
Annual Estimated Savings $ 612
Based on output of 3,122 kWh at 0.196 kWh
Approximate Simple Payback 5.8 years
For more information, please visit our Web site
or contact LIPA’s Infoline at 1-800-692-2626