This prime solar state offers an enticing return on investment for solar hot water. First, being smack dab in the middle of the Sunbelt means that owners of solar hot water systems will benefit from some of the world’s most consistent sunlight as well as relatively high temperatures. The high outdoor temperatures are especially helpful, since a low chance of freezing means that simpler solar hot water technology can be used.

Without getting too bogged down in technicalities here, a lack of temperatures below freezing means that residents can opt for less expensive open loop solar hot water systems, which circulate the actual water being heated back and forth to the solar collector. In contrast, the closed loop systems that are needed for colder climates circulate antifreeze fluid, creating a two step process where the heated antifreeze can transfer heat to the water.

Aside from climate and location, Arizona offers some very strong incentives for solar hot water. The state offers a 10 percent personal tax credit for renewable energy in addition to the 30 percent federal tax credit available. Together, these tax incentives offset a significant portion of system costs. Beyond tax incentives, many major utilities offer very attractive rebates. We have more comprehensive information available here, and these utilities include Arizona Public Service (APS), SRP, Sulphur Springs Valley Electric Cooperative, Trico Electric Cooperative, Tucson Electric Power, and Unisource Energy Services.

Depending on individual system needs and the specific incentives available through your utility, solar hot water systems could pay for themselves in 5-6 years, driving long term savings of thousands of dollars.

Sounds nice doesn’t it? We’ll cover the calculations that generate these estimates in a future blog post. Stay tuned.