Rebates for solar water heaters approved
For three years, California has offered homeowners financial incentives to install solar panels that generate electricity. Now, solar water heaters will get their moment in the spotlight.
California energy regulators on Thursday approved a $350 million rebate program for homeowners and businesses that install solar thermal water heaters, which use the sun’s warmth to heat water for the bathroom, kitchen and laundry room.
Such systems have been around for decades, but they’ve received little of the attention paid to photovoltaic solar panels. And yet, using sunlight to heat water cuts the amount of natural gas or electricity a building needs. Most California homes run their boilers on natural gas, while a few use electricity.
California’s popular rebate program for photovoltaic solar has helped spur the growth of the state’s solar power industry, from companies that make solar panels to those that install them. The California Public Utilities Commission, which unanimously approved the new rebates on Thursday, now wants to see the same results with solar thermal companies.
“The time is right to establish a program that promotes the growth of the solar thermal market, creates green jobs and furthers our goals of greenhouse gas reductions,” said Commissioner Timothy Simon.
There are several variations on solar thermal technology, but most involve a rooftop “collector” that absorbs the sun’s heat and transfers it to water. In colder climes, the collector transfers heat to an antifreeze solution, which then transfers the heat to water.
A typical home solar water system costs from $5,000 to $7,000. Using one can cut a home’s natural gas bill in half, said Bernadette Del Chiaro, clean energy advocate for Environment California, an environmental group.
“This is another giant step forward for California making solar a mainstream technology,” she said.
The new solar thermal rebates will work much like the old photovoltaic rebates, decreasing in size over time. The average residential rebate will start around $1,500 but eventually will fall to $550. The program will run for eight years or until the funding is used up, whichever comes first.
Funding will come from utility customers, through a surcharge on natural gas bills. The surcharge is estimated to be 13 cents per month.
Written by David Baker for the San Francisco Chronicle