Which is more cost effective, solar hot water or solar electricity?
Solar hot water is the most cost effective solar energy solution available (NC State Energy Office). Using the available tax credits (individual state tax credits vary), Renewable Energy Credits, and energy offsetting, a solar hot water system can pay for itself in 3 – 7 years and a solar electricity system can pay for itself in 5 – 15 years (commercial systems fall in the lower part of the range due to additional tax and depreciation benefits available).
