Potential Financial Savings Offered by a Solar Water Heating System for a Typical Family of Four

Fuel or energy source for water heater and price

Annual Water Heating Fuel Cost

Potential Annual Utility  Savings*

Electric,

$0.08/kWh

$512

$216 - $347

Natural Gas,

$1.25/therm

$316

$158 - $252

Propane,

$2.50/gal.

$668

$334 - $527

Based on average hot water use of 70 gallons/day and a solar system providing 50 - 80% of energy needed for water heating. As fuel prices rise, annual savings will rise. Estimates produced using RETScreen Clean Energy Technology software.