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Staying Financially Afloat Just Needs Water: Solar Water Heating

As the unstable economy continues to worsen and costs of doing business continue to rise, companies are looking for cost-effective ways to meet the challenges of reducing overhead, while increasing profits. There is a way to make being in hot water beneficial, however, and that’s where solar water heating comes in.

The California Center for Sustainable Energy (CCSE), a San Diego nonprofit organization, has taken the lead in this effort by launching the Solar Water Heating Pilot Program (SWHPP), a trial program that provides San Diegans with cash incentives for installing a solar water heating system.  Incentives are available through the end of 2009 or until the funding is exhausted.

The SWHPP offers cash incentives up to $75,000 for San Diego businesses and as much as $1,500 for residents. By generating heat from the sun, a commercial system can offset up to 75% of the natural gas, electricity or propane used for heating water, including industrial processes. This allows business owners to avoid buying energy from the utility and hedge against future rate increases. Commercial applications are also eligible for a Federal Tax Credit of 30% of the net system cost for systems installed before December 31, 2008. As an added bonus, solar investments are exempt from assessment value for property tax.

Solar water heaters use the sun’s thermal energy to heat water, which helps reduce dependence on the fossil fuels that power traditional water heating systems. According to Andrew McAllister, Director of Programs at CCSE, “Solar water heating helps reduce traditional energy consumption, avoids combustion-related emissions and reduces the need for new power plants. This is a great partnership between businesses and sustainability.”

The pilot program was made possible by a California Public Utilities Commission authorization of $2.6 million in SDG&E ratepayer funds to develop and implement the program. The program’s incentives help licensed contractors, homeowners and businesses to reduce the costs and promote the installation of clean, renewable solar water heating systems. The Solar Water Heating Pilot Program is the predecessor to a potential $250 million statewide program, which is contingent on the outcome of the pilot. Currently, the SWHPP incentive is the only funding available for solar water heating within the investor-owned utilities of California, and does not apply to pool and space heating.

The SWHPP is a unique opportunity to achieve the maximum triple bottom line for economic, environmental and social success.

To learn more, visit www.swh.energycenter.org.