Is It Time to Install a Solar Hot Water System?

As the world continues to experience the impacts of climate change, more people are looking for ways to reduce their carbon footprint and lower their energy bills. One way to achieve this is by installing a solar hot water system in your home.
These systems are an eco-friendly alternative to traditional hot water systems that rely on non-renewable sources of energy.
But is it really time for you to make the switch? In this article, we will explore the benefits of solar hot water systems, compare them to traditional hot water systems, evaluate your home’s solar potential, consider the cost and maintenance factors, analyse the environmental impact, and discuss government incentives and rebates.
By the end of this article, you’ll have a better understanding of whether it’s time for you to install a solar hot water system in your home.
What Kind of Hot Water System Do You Have?

Hot water systems are a crucial component of modern living, providing us with warm water for our daily needs. However, not all hot water systems are created equal, and understanding the type of system you have can help you make informed decisions about making a change.
The most common types of hot water systems are storage tank systems and instantaneous (or tankless) systems. Storage tank systems store hot water in a tank and keep it heated until it is needed. Instantaneous systems, on the other hand, heat water on demand as it flows through the unit.
Is it powered by electricity or gas? To determine what type of system you have, you can examine your hot water unit or consult your installation or service records.
If you have a tank, it’s important to know the capacity and age of the tank, as well as any maintenance that has been performed. Storage tanks typically last between 10 and 15 years before they need to be replaced.
If you have an instantaneous system, you should know its flow rate and the maximum temperature it can produce. This will help you determine whether it can meet your household’s hot water demands.
It’s also important to consider the energy source for your hot water system. Traditional systems are often powered by natural gas or electricity, while solar-powered or heat pump systems are becoming more popular.
By understanding your current hot water system, you can make an informed decision on whether or not to upgrade to a solar-powered system.
Evaluating Your Home’s Solar Potential
Is your home suitable for solar power? It’s an important step to determine whether a solar hot water system is right for you. There are a few factors to consider when evaluating your home’s solar potential. These factors include:
- Roof orientation – You need to assess the orientation of your roof. Ideally, your roof should face south, as this will ensure maximum exposure to the sun throughout the day. East or west-facing roofs can still be viable options, but may not receive as much direct sunlight.
- Shading – Consider any shading on your roof. Trees, buildings, or other obstructions can block the sun’s rays and decrease the efficiency of this kind of hot water system. It’s important to evaluate the shading patterns throughout the day and throughout the year to get a clear understanding of how much shade your roof receives.
- Climate – The climate in your area can also affect the potential of a solar HWS. While they can still operate in colder or cloudier climates, they may not be as efficient as they would be in a sunnier location.
- Roof space – Finally, you need to consider the available roof space for solar panels. A typical solar HWS requires between 2-4m² of roof space per person in the household. If you have limited roof space or live in a multi-unit dwelling, this kind of system may not be feasible.
By evaluating these factors, you can determine whether your home has sufficient solar potential for a solar hot water system. Consulting with a professional solar installer can also help you make an informed decision about whether this kind of system is right for you.
Consider Initial Cost and Maintenance
When considering installing a solar hot water system, cost and maintenance are important factors to evaluate. While these systems can be initially more expensive than traditional hot water systems, they can provide significant cost savings over the long term.
The initial cost of a solar hot water system depends on the size of the system and the complexity of the installation. On average, a solar HWS can cost between $4000 and $10,000 for the equipment and installation. However, there are government rebates and incentives available that can help offset these costs.
Once installed, solar hot water systems have lower operating costs than traditional hot water systems. Since they use the sun’s energy, there are no ongoing fuel costs, and energy bills can be significantly reduced. This means that while there may be a higher initial investment, a solar hot water system can pay for itself over time.Maintenance requirements for these systems are generally lower than traditional hot water systems. However, it’s still important to perform regular inspections and maintenance to ensure the system is functioning properly.
This can include checking the system’s pumps, valves and other components, as well as cleaning the solar panels to ensure maximum efficiency.
Overall, while the initial cost of a solar hot water system may be higher than traditional hot water systems, the long-term savings and lower maintenance requirements can make it a worthwhile investment.
What is the Environmental Impact?

The greatest benefit of using solar power is the positive impact on the environment. Unlike traditional hot water systems that rely on fossil fuels, solar hot water systems use renewable energy from the sun.
This means that they do not produce greenhouse gas emissions, which contribute to climate change.
Additionally, these systems require less water to operate than traditional systems, making them a more sustainable option. By choosing to install this kind of HWS, homeowners can reduce their carbon footprint and contribute to a more sustainable future.
What are the Government Incentives and Rebates?
The Australian government offers a range of incentives and rebates to encourage the use of solar power, including solar hot water systems. These incentives can help reduce the initial cost of installation and make a solar HWS more affordable for homeowners.
One of the main incentives offered is the Small-scale Technology Certificates (STCs) scheme. Under this scheme, homeowners can receive a rebate on the cost of their solar hot water system installation. The rebate amount is based on the size of the system, its location, and the amount of solar energy it generates.
In addition to the STCs scheme, some state governments also offer their own incentives and rebates for installing this kind of hot water system.
For example, the New South Wales government offers a rebate for eligible low-income households and the Victorian government offers a rebate for solar hot water systems that replace electric systems.
These incentives and rebates make a solar HWS a more accessible option for homeowners in Australia. They can help reduce the upfront cost of installation and provide ongoing savings through reduced energy bills.
Homeowners interested in installing a solar hot water system should check with their local government to see what incentives and rebates are available to them.
In Conclusion
There’s no question that installing a solar hot water system can be a smart investment for homeowners looking to reduce their energy bills, lower their carbon footprint and contribute to a more sustainable future.
While the initial cost may be higher than traditional hot water systems, the long-term savings and lower maintenance requirements make it a worthwhile investment. With government incentives and rebates available in Australia, homeowners can take advantage of the benefits of solar hot water systems while also reducing the cost of installation.
If you’re considering installing a solar hot water system, it’s important to evaluate your home’s solar potential, as well as the cost and maintenance considerations, to determine if it’s the right choice for you.
Please note: This information is provided for advice purposes only. Regulations differ from state to state, so please consult your local authorities or an industry professional before proceeding with any work. See our Terms & Conditions here.
Last Edited on: 18th September 2023