Solar Water Heaters

The status of the solar hot water industry is as uncertain as the rest of the economic outlook. The transition to sustainable energy is going to be longer and tougher than we had imagined and hoped. However, it will not be stopped.

We have been focusing our efforts on making our system leak-proof and goof-proof by using rubber line sets with hose clamps for the fluid connections, and plug-in connectors for the electrical connections. As our sales volume grows we are continuing to work to get the price of our systems down. The challenge is that sales projections are difficult when consumers are not in a spending mood.

We have obtained OG-300 certifications for our balance-of-system with SunMaxx™ Titan Power SU-2 flat plate solar collectors. SunMaxx has warehouses in the Northeast, in Denver, and in the Southwest, which will result in lower shipping costs. We intend to jointly market this product.

We have found that many people are not aware of the many benefits of solar-powered pumps, like those we use in our solar hot water systems:

1. They work when the grid is down, so you still have solar hot water if the power goes out
2. Because no grid power is required, they are ideal for off-grid locations (cabins, remote houses)
3. They don’t require an outlet near your hot water tank
4. PV-powered pumps work only when the sun is out, so they do not need a Delta-T controller
5. A grid-powered pump uses about 292 kWh of electricity per year; at $0.10/kWh, that is $29 per year…
6. …But a PV pump costs about the same as an AC grid-powered pump and a Delta-T controller…
7. …and the cost of a PV panel for a 10 Watt PV pump is about $60; therefore, a PV-pumped system pays for itself in about two years or less compared to a grid-powered system. These energy cost savings continue to add up, year after year, over the life of the system (20-30+ years).

Several recent studies have shown that home values go up by about 60% of the installed cost of a solar hot water system. Hence, a $6,500 installed solar hot water system with a 30% federal tax credit costs the homeowner $4,500, and the home resale value goes up by $3,900. The remaining $600 in cost is more than made up through the energy savings delivered by the system. For example, in the San Diego, CA area, the energy savings of 120 therms (2,304 kWh) per year from a typical system results in a four-year payback compared to natural gas and a 1.3-year payback compared to electricity. Solar Hot Water continues to be an excellent value!

From all of us here at Butler Sun Solutions, we hope you are doing well despite our present economic troubles, and we look forward to a sustainable, solar-powered future!

Barry L. Butler, PhD, CEO

Butler Sun Solutions, Inc.