Solar water heating systems cost an average of $3,706 depending on the style, size, and installation of your design.
As we all work to cut down on our carbon footprint, the enticing perks of a solar water heater system are plentiful. We're talking about saving between 50% and 80% off your utility bills each month, federal and state tax exemptions, and even rebates from your local electric company. The cost to install a solar water heater—with labor and parts included—runs an average of $3,706, though prices can go from $1,780 to $5,722. This is a heftier investment than the cost of a traditional system.
You can understand the cost of your solar water heater system from several angles. First, consider the size of the system you'll need. Then, break down the installation by the individual parts of your solar water heater, from the solar panels themselves to the collector tank. Labor costs and where you live also play a role. Let's dive in.
Like a standard hot water heater, the size of your system depends on how much warm water you use regularly. Are there multiple teenagers in your house taking several showers a day, or are just two of you sharing one bathroom?
The more people and water sources in your home, the larger each part of your system will be.
When you meet with a solar heating specialist, they'll likely make some basic calculations to determine the size of your tank and the number of solar panels necessary. Overall, you can expect the following price ranges for each size tank.
Costing an average of $2,000 for labor and parts, two people can comfortably enjoy a 50-gallon tank paired with a 40-square-foot collector.
This size is ideal for a family of three or four people, links to about a 60-square-foot collector, and costs around $3,000.
Large families of five or six require a larger tank and up to 80 square feet of collection panels. This system runs around $4,000.
There are several types of solar water heaters to choose from, and each comes with its own set of water heater components and related costs. You can choose from either a passive solar heating system or an active one depending on your local climate and budget.
Every type of solar water heater, however, includes three primary sections of its design.
Solar collectors (aka solar panels) to collect the sun's energy
Tank to collect the hot water
Plumbing to connect the system to your home
Diving a bit deeper, passive systems depend on natural convection to sort hot and cold water in your tank. They are ideal in warmer climates with ample sun where you don't need to worry about freezing temperatures. Active systems, on the other hand, are best in cooler areas that require extra help to keep the hot water flowing. These designs feature:
Water pumps
Heat exchangers
Additional collectors to sort water
Specialized draining to prevent freezing
In other words, due to their complex parts, active water heaters are often more expensive than passive ones—at least upfront. Passive systems can be harder to maintain but feature a basic and less costly setup.
Overall, the basic parts for your solar water heater system cost between $1,000 to $4,000. Add an extra $1,000 to $2,500 for additional plumbing, backup heaters, or switches to control an active system. The number of solar panels also plays a role, costing between $800 to $1,500 each.
If we break down the costs further, you can get a better sense of the cost of each type of solar water heater as well as replacement parts.
The solar panels, often located on your roof, are known as the collectors. There are three popular solar collector options on the market at the moment. While prices vary, some perform better than others in fluctuating climates, freezing temperatures, and areas with low sun levels. We'll break down how these work later.
| Solar Collector Type | Cost Range |
|---|---|
| Flat plate Solar Collectors | $600–$1,200 |
| Evacuated Tube Solar Collectors | $1,200–$4,500 |
| Integral collector systems | $3,000–$4,000 |
While we already touched on the combined price of tanks and collectors earlier, what about the tank itself? Determining the tank size will ensure you have enough hot water stored for a cold rainy day when you happen to be doing three loads of laundry.
| Collection Tank Sizes | Cost Range |
|---|---|
| 30 – 60 Gallons | $1,000–$2,000 |
| 60 – 80 Gallons | $1,400–$2,800 |
| 80 – 100 Gallons | $1,700–$3,800 |
| 100+ Gallons | $2,600–$5,000 |
The type of solar water heater will determine which additional parts are necessary for your design. Here's a basic breakdown of common costs for solar water heater features.
| Additional Parts | Cost Range |
|---|---|
| Controller | $100–$500 |
| Water Pump | $100–$600 |
| Mounting Hardware | $50–$350 |
| Pump Station | $500–$900 |
Lastly, you'll need to calculate labor costs—a significant chunk of the estimate. The average hourly rate for installing a solar water heater is $70 to $200 an hour, depending on the complexity of the work and where you live. While most installations take a couple of days, the total number of hours necessary to do the installation also depends on:
The size of your system
The size of your home
Sunshine levels and temperatures in your region
Placement of your solar collectors (it takes more time to install them on a roof)
If you need to heat a pool
On average, expect at least $1,000 to $2,000 of your total solar water heater cost to account for labor. Your solar heater specialist may also call in a professional plumber to connect the heating system to the pipes. Add between $45 and $200 an hour for the price of a plumber.
Location-related price factors pertain to several details. Where you live can affect the solar water heater costs due to:
The number of solar collector square footage based on your climate.
Labor and material prices in your region.
Local and state energy rebates and tax incentives.
Placement and the hours of sun exposure on your roof.
Climate factors that can affect the type of solar water heater cost you need.
More specifically, the northern half of the U.S. will pay more on average than the southern half due to sun exposure and year-round above-freezing temperatures. The average thermal collector size in the north will cost between $1,000 and $4,000, while southern homes will pay $1,000 and $3,000.
As we briefly touched on above, you'll spot a large difference between two main categories of solar water heater systems: passive and active. Not only do they have different price tags, but they also function best in different regions of the country, giving you a better sense of how solar water heaters work and what to expect from their operation.
Integrated-collectors and what's known as a thermosyphon system run between $1,000 and $4,000 before the cost of labor. Without a backup heater, passive systems depend on the sun's heat and often include complex plumbing to sort the cold and hot water.
While they do cost less upfront than the active options, they are also both heavier and less dependable in cold areas.
Passive systems also break down into two main designs: integral collector systems and passive thermosyphon systems.
Homes located in warm, sunny climates can take advantage of the very simple, easy-to-install integral collector—or batch—system. A transparent water tank sits on the lawn near the house and heats up in the sun. The system costs just $1,000 to $2,000.
You'll pay a bit more—between $1,500 and $3,000—for a thermosyphon system due to its extensive parts and installation. A collection tank must sit above the collector, allowing warm water to naturally rise to the top of the tank and store for later usage. In some models, specialized draining systems keep the system from freezing if the temperature dips. Your home will likely need a strong roof to support this model.
Even with higher upfront costs, active systems are far more common in homes looking for a long-term, sustainable water heating method. The two systems—known as direct and indirect or open-loop and closed-loop systems—cost between $2,000 and $4,000 on average.
Direct systems work best in warm areas, while indirect systems use antifreeze and a heat exchanger to handle the winter months. These hookups also come with electric or gas backup generators, cutting out the possibility of an ice-cold shower on a cloudy day. You'll pay between $2,000 and $3,000 for a direct active system. The design is often preferred by homeowners for its price, efficiency, and relatively low maintenance.
It may seem infeasible for someone living in a cold, freezing climate to install a solar water heater, but an indirect active system may be the answer. To combat cold temperatures, the heater pumps a heat-transfer fluid through a heat exchanger to circulate water. You'll also find a drainage system to keep the pipes and tank from freezing. The extra energy and installation costs are not efficient in most warm climates but can be a game-changer in cold ones. The indirect active system costs between $3,000 and $4,000 on average.
While you'll find most solar water heater costs packaged in your initial estimate, a few can sneak up on you during and after installation.
Most solar water heaters require semi-annual maintenance check-ups—usually every three to five years—to ensure they're functioning properly. Any system that uses a heat transfer liquid may need extra care to ensure the chemical never mixes with the drinking water. Overall, however, solar water heaters are relatively easy to care for.
Compared to other water heater repair costs—which can range from $100 to $1,700 due to complex parts—a solar water heater's simplicity lowers the annual price tag.
Within the larger context of water heater installation costs, removing the old system from your home will cost between $100 and $500. Some contractors will include this in their flat-fee estimate or tack on several hours at their given rate. Keep in mind that you may also have to pay for proper disposal of the system, which will depend on local recycling and disposal laws.
The cost of construction permits can sneak up on you depending on their rate in your area. Plumbing permit rates, for example, can range from $50 to $500 and typical permit costs for installing solar panels average $450. Be sure to work with a professional who is experienced in pulling the proper permits before solidifying your estimate.
Your contractor may recommend including a backup electric or gas-powered heating source or a tankless water heater. Similar to solar water heaters, tankless heaters have many pros and cons, the primary perk of which is energy efficiency. Tankless water heaters cost an average of $2,500 to install.
Always take the initial installation cost of a renewable energy system with a grain of salt. Federal and state tax incentives can significantly offset what you'll spend on installation.
For example, EnergyStar states that homeowners who installed a solar water heater system before the end of 2019 received a 30% tax credit. Between 2020 and 2022, you'll still get a 26% rebate, with the number going down over time.
You can then dive into your state and utility company's rebates to push the price down further. For one, homeowners in New York can deduct 25% of the cost of materials and installation. Utility companies across the country also offer direct rebates after upgrading your system.
In addition to the money spent on tax incentives and rebates, Energy.gov states that you can lower your water bill between 50% and 80% each month. And since the systems last longer on average than many other water heaters, you'll save money on repairs and replacement as well.
It also notes, however, that the amount of money and energy saved on installing a solar water heater will depend on environmental factors, the cost of other fuel sources in your area, and annual operating costs. Speak with a local water heater installation team for the best options.
On a basic level, let's look at the cost of solar water heaters after the average rebates compared to other systems. Keep in mind that while solar water heater costs are more upfront compared to other types of water heaters, most installations will make up for the cost savings in water bills, maintenance, and replacement over its lifetime.
| Types of Water Heaters | Cost Range |
|---|---|
| Solar Water Heater | $1,700–$5,500 |
| Storage Tank Water Heater | $1,200–$3,500 |
| Tankless Water Heater | $1,300–$3,700 |
The typical solar water heater cost—both the unit price and the cost to install—might be higher than a traditional water heater, but once you factor in cost savings, it can be well worth the investment. In fact, the United States Department of Energy estimates a 50% to 80% drop in monthly water heating bills once you convert from a traditional water heater to a solar water heater.
In addition, the department reports that you can immediately save more money than you’re paying if you install a solar water heater when building a new home. The monthly cost of a solar water heater, built into a 30-year fixed mortgage for a new build, comes out to $13 to $20 a month, but the federal income tax deduction drops that to roughly $10 to $15 per month. As long as the solar water heater saves you $15 a month on your utility bill, you’re saving money immediately.
Are you considering a solar water heater but want more specifics to estimate your savings? The Department of Energy shares multiple equations for you to calculate projected energy efficiency, annual operating costs, and payback timeline.
The cost to install a solar water heater can be high—so high that you may be tempted to handle the installation yourself. However, under no circumstances should a homeowner DIY a water heater installation. Water heaters are subject to a wide range of building code requirements, and you’ll need to obtain proper permitting before replacing your water heater.
Incorrect installation can make the water heater inefficient—or even dangerous. Warranties typically require installation and repairs by a licensed professional, and the work requires a mastery of various construction disciplines, including plumbing, electrical, gas, and carpentry.
If you’re ready to switch to a solar water heater, research the best water heater specialists near you, and let them handle the job.
When looking for a solar water heater installation professional, it’s important to get quotes from a handful of companies. This allows you to compare prices, timelines, and customer reviews and choose the best installer for your project.
As part of the quote process, ask the solar water heater installation specialist a few questions to help you make an informed decision:
Are you licensed and insured, and is the person who will be performing the actual work also licensed and insured? Do you plan to hire any subcontractors for this project? If so, can you provide their company names and confirm their licensure and insurance?
What is the permit process for this project? Is a permit required, and who handles obtaining it?
Are there any federal, state, or local incentives I should be aware of when converting to a solar water heater?
How soon can you fit the installation into your schedule, and how long will it take?
How can I prepare my home for the installation? What should my family keep in mind during the installation, and how might the installation impact our daily routines?
Is the system you are installing under warranty? Do you offer any guarantees for your installation?
What size water heater do you recommend for the size of my home and family? How many and what type of collectors do you recommend?
Can you offer guidance for maintaining the system? Does your company do routine maintenance on solar water heaters?
Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We survey real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
Want to help us improve our cost data? Send us a recent project quote to costquotes@angi.com. Quotes and personal information will not be shared publicly.
Ginny Bartolone contributed to this piece.
Solar water heating systems are not one-size-fits-all. You'll likely work with a team of experts to get the job done—including solar panel installers, plumbers, and water heater installers. A specialist will help you decide if a passive or active system is best for your local weather, home layout, roof stability, and your budget.
Expect your solar water heater system to last around 20 years, if not more. Much like a standard water heater, expect ongoing maintenance and inspection costs as well. The U.S. Department of Energy offers tips on how to protect your panels from weathering as well as maintaining your pipes.
Not only do solar water heaters cut down your carbon footprint by using the energy of the sun to heat water, but they can also pay for themselves in just three to six years. Between lower utility bills and tax incentives, the system can be more sustainable than a standard water heater.
If you live in a cloudy or cool area, your hot water installer may recommend an active heater with a backup power source. Passive systems store water for cloudy days as well but may run out after a long break in sunshine. And don’t worry about these systems being able to run at night because you’ll still be able to run hot water after the sun goes down.
