Solar hot water systems are a great way for homeowners to save money. The California Energy Commission estimates that replacing an electric water heating system a solar hot water system in a typical household can cut off of water heating costs by 60-70%.

Solar hot water collectors are more than 3x as efficient at producing energy from the sun compared to electric photovoltaic systems. When you factor in government and utility incentives, their efficiency gives them a quicker payback and return on investment.

The advantages of these systems are as follows:
- Year round usage
- Low installation costs (usually less than $5000)
- Rebates from federal and state governments
- Collector mounting requires a relatively small area (usually less than 80sq ft)
- High efficiency
- Usually integrates easily with existing plumbing system
- There are a variety of system types available
- The technology and system designs are proven
- They are usually expandable (assuming the proper design)
- Long system life
- Energy displacement is large
- Utility bill savings can be significant

If you decide to install one, it is very important to have the right size system in order to get the best performance for the area you live in. The amount of water you use, the amount of sun available, and climate you live in are obviously important variables to consider.

Make sure you do your research on picking out the best product for your particular situation. The solar rating and certification corporation website can provide help on the performance estimates of many of the commercially available collectors.