How Much Does a Solar Water Heater Cost in 2025?

This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.

Installing a solar water heater costs most homeowners $3,706, with prices ranging from $1,780 to $5,722. While higher-end models and components can run up to $12,000, investing in a solar water heater can reduce your energy bills by 50% to 80% and increase your home's value. The tank and parts will add between $500 and $1,500 to the equipment total, for a combined $1,000 to $4,000 before labor and permits. Hiring a water heater pro ensures code and regulation compliance and optimal function.

Solar Water Heater Cost Factors

The total price of solar water heater installation depends on many variables. The size of the tank, the type of collector, the amount and cost of labor, and any additional features all play a role in determining the final project cost.

Thermal Collector Type

Thermal collectors vary in price from $600 for a small, flat plate model affixed to your roof to $4,500 for an evacuated tube solar collector that produces much more heat than flat plate units. This is the cost breakdown of different collector types.

Flat plate collectors cost between $600 and $1,200. They're an affordable option, but they may require more maintenance due to potential air pockets and debris blockages. They also tend to be less efficient compared to other types.

Evacuated-tube solar collectors cost $1,200 to $4,500 and are prized because they produce more heat than other types. However, they're prone to overheating, and the internal tubes can break, resulting in costly repairs. Still, they're fairly efficient, and because they absorb solar energy so rapidly, there's no radiative heat loss. However, these collectors may not be able to provide enough hot water during the winter months.

Integral collector-storage or bulk collector systems cost $3,000 to $4,000, and homeowners and pros like them for their simplicity and lack of maintenance. The water tank and collector combine in a single unit, and the collector doesn't need any pumps, controllers, or heat sensors. They're also comparatively efficient in colder climates, although they do suffer from heat loss overnight.

Water Tanks

Water tanks for solar heating systems cost between $800 and $2,800. They're available as single- or double-walled units, and some have a heat exchanger and/or an auxiliary heater backup. Prices vary based on size, wall type, and additional features. Double-walled tanks are more efficient, keeping stored water hotter for longer and suffering from less heat loss than other types.

Additional Parts

If you've chosen an active system, you'll need more than just the collector and the storage tank. These essential extra parts will increase solar water heater prices.

• Controller: $100–$500

• Pump: $100–$600

• Mounting Hardware: $50–$350

• Pump Station: $500–$900

Labor

Labor for solar water heater installation runs $70 to $200 per hour, depending on your region. Add $1,000 to $2,500 for additional plumbing, a backup heater, or extra controls.

Location in the House

The difficulty of installation and the hours needed can fluctuate greatly depending on where the collectors are going. They can affix to the roof, the wall, or the ground. Roof work will be more dangerous and will take more time and precautions. 

The proximity of the collectors to their storage tank is also important. The shorter the distance between them, the less plumbing and labor needed. Your contractor may recommend an area farther away simply to orient the collectors for optimal sun exposure.

Sun Exposure

This factor can significantly influence the effectiveness and size of the collectors. For homes that only get four hours of absorbable sunlight per day, a larger area needs to be covered to gather enough hot water for the home. Those that get incredible sunlight won't need to cover as much area to get the same amount.

Tax Credits

You may be eligible for a 30% federal tax credit on your solar water heater, which can significantly reduce your final cost. For example, a system costing $4,000 would be reduced to $2,800 after the credit. Additionally, many states and counties offer local incentives that can save you even more.

Energystar.gov and Energy.gov are great resources for up-to-date details regarding this tax credit. You can also ask your installing contractor or your utility provider for literature on state and local rebates.

Solar Water Heater Costs by Type

There are two main types of solar water heating systems: active and passive. Active systems, which can be direct or indirect, use pumps to circulate fluid. Passive systems, like integral collector-storage and thermosyphon, rely on natural circulation without pumps.

Active System

Active solar water heaters cost $2,000 to $4,000. They require solar collectors and a heat storage area. Since the storage area can hold much more heat and is equipped with an internal electric or gas backup, the possibility of running out of hot water after several cloudy days is nonexistent.

The equipment is slightly more expensive to install, but it eliminates the need for a traditional backup unit. Since it completely replaces the conventional one, you need to consider only the costs associated with an active system.

Two versions of active systems are available to meet your needs in different climates:

• Direct systems move the water itself through the collector to heat it. Direct systems function best in warm environments.

• Indirect systems move antifreeze through the collector, returning it to the tank and warming the water via a heat exchanger. These types are more reliable in colder climates where temperatures drop below freezing.

Passive System

Passive systems are less expensive than active systems at $1,000 to $4,000, but they're also considerably less efficient. They can quickly run out of hot water on overcast days and can only heat around 40% of your home's required hot water, so you'll need an electrical backup system.

This type is very easy to create and use, but it comes with several drawbacks. A passive system will quickly run out of heated water after a few cloudy days. This essentially means that you'll need to keep your existing water heater as a backup. Another disadvantage is the weight of a passive unit. They can both be extremely heavy, which will limit where they can be safely installed on the roof. 

The two types of passive solar heating are integral collector-storage and thermosyphon.

• Integral Collector-Storage (ICS): Often less expensive. Many homeowners have successfully built their own from scratch. It warms the water up for the conventional home tank. The tank will draw from the stored “batch” when the plumbing demands hot water. ICS units won't work in climates that drop below freezing and can be extremely heavy.

• Thermosyphon: More expensive. Hot water rises to the top of the collector and moves into a storage tank. To receive this tank, it must be at a level higher than the collector itself. It then moves to a second tank within the home. These are even heavier than ICS units and may not meet the weight-bearing capacity limitations of some roofs. They also have more components.

Solar Water Heaters vs. Other Types

While solar water heaters have a higher upfront cost than gas or electric systems, they offer substantial savings on energy costs and consumption over time. Additionally, because they're not reliant on the grid, you'll still have hot water during a power outage.

On the other hand, not all solar water heaters can manage to meet your total demand for hot water, particularly in areas where cloud cover is an issue, so most homes still have to have a backup tank to supply hot water when the solar system can't manage it.

Pros and Cons of Solar Water Heaters

It's true that, for many homeowners, the leap to solar water heaters is an attractive proposition because of the potential savings and carbon footprint reduction, but these systems are not for everyone. Take a look at the key pros and cons of solar water heaters to see if they're the right choice for you.

Pros

One of the biggest benefits of installing a solar water heater is the significant monthly savings. According to Energy Star, energy bills can drop by at least 50%, and savings can reach up to 80%. While actual savings depend on various factors, you can be confident that your home's energy consumption will drastically decrease.

Other benefits include:

• 30% federal tax credit

• Reduce your household carbon footprint

• Easy to maintain

• Operate quietly

• Can increase your home's value

Cons

While the upfront cost of a solar water heater can be high, it's important to consider the long-term benefits. These systems last for decades, and the payback period is usually only three to six years. After that, you'll enjoy ongoing energy savings, effectively profiting from your investment.

There are other disadvantages to consider compared to photovoltaic (PV) systems. Some homeowners would prefer panels that generate electricity for the entire home. This way, you can power multiple appliances while heating water. The solar collectors for a heater will only work towards the water heater and will not provide the electricity that a PV system does. PV systems, which generate electricity for the entire home, have an average installation cost of $27,000.

Other drawbacks include:

• Depending on system type and climate, you'll need a backup water heater and tank

• These systems take up a lot of space

• In hot climates, the stored water can reach very high temperatures. To prevent the risk of scalding, you can install mixing valves or temperature controls.

• In areas with heavy cloud cover, you may rely more on the backup system, which can reduce potential savings.

DIY or Hiring a Solar Water Heater Pro

While designing your own batch heater is possible, installing an active solar water heating system is not a DIY project. This complex work requires multiple areas of expertise and several days to complete, and most states require a trained and licensed professional for this type of installation.

To maximize your investment and ensure your system is safe and efficient, it's best to hire a professional water heater installer. They have the skills and knowledge to design a system optimized for your home's needs and to meet all codes and regulations.

How HomeAdvisor Gets Its Cost Data

No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. After a project is complete, we survey real customers about the costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.