Solar Energy Hot Water - The New Gold Rush

The Solar Hot Water Gold Rush

Have you considered obtaining your hot water by more efficient means utilising the sun´s power? We did, and having been given an array of quotations from a number of companies, and looked at the supposed savings, we came to the conclusion that it´s not worth a candle.

Like most people, we were getting quite alarmed at the rise in gas prices, estimated to be about 35% higher than 12 months ago. Even the recent announcement by British Gas to reduce prices by 10% (but not until they´ve raked in the money for the current winter period) did not give us a warm fuzzy glow of confidence that we would see prices return to more "affordable" levels, if at all. Yes, we thought about our CO₂ footprint, but this comes in second place to the need to reduce our household bills. A cost-effective solution it ain´t.

On average, companies want to charge around £3,000-£5,000 for a basic "dual-fuel" installation - oh, and don't forget to add the cut for the government in the form of VAT.

The installation quoted consists of two roof-top panels and a new hot water cylinder comprising two separate heating coils - one for the existing feed from our gas boiler, the second from the new solar panels. Added were pumps, pipes and the what-not.

On the other side of our decision-making equation is the estimated annual saving. From what appears to be a government backed organisation for the promotion of this eco-friendly solution we found that we could expect to make annual savings of around £65!

Well it doesn´t take Stephen Hawking to tell us that even for the lowest quote this is going to take about 45 years to recoup our initial capital expenditure. That´s right - 45 years!

Being a cynical sort of person and a great believer in the idea that market forces drive up the price a product to that point at which the market can bear (especially here in the UK) I come to the conclusion that some companies are just not looking at the numbers.

Suppliers think we are going to "invest" in their wares on the grounds:

1. We are doing the environment a favour.

2. Because it's "new", we are prepared to pay premium prices (the early adopter scenario).

3. Because it has a "green" association we lose all sense of reality.

And here are some other so-called "positive" reasons given (extracted from one website):

Provide 50-75% of domestic hot water - so you still have to use gas or electric!

Reduce water heating bills and gives <10% p.a. return on your investment - insufficient!

Increase the price of your house - not in the current climate, but how many times do we hear this?

Heat water in winter with no direct sunlight - the only useful attribute!

Minimum of maintenance - so too is the current fuel system!

Reduces your Carbon Dioxide emissions by 500kg per year, depending on the fuel, thereby helping the environment - but at a price! The consumer pays again!

It´s interesting to see prices in countries that have been using solar hot water heating for a considerable time, countries like Turkey for example. Now this is something we know about having our own modest property in a delightful location. Our hot water roof-top system cost about £800 fully installed - and even allowing for the special "foreigner's" price, this is a pretty good deal.

Our conclusion is that some companies and suppliers are hiking their prices, and we are not going to swell their inflated coffers. Instead, we intend to install a new condensing boiler. At least we can maximise the efficiency of the current system, until, and if, the natural solution becomes a more realistic "investment." Sod the footprint!