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Before you can install a solar hot water heater, you must have a solar collector and a storage tank. The collector is made up of solar panels, which are placed on the roof or in a sheltered area below. The collector should be oriented to receive the most sunlight and be placed near the storage tank. The storage tank should be insulated and contain some kind of circulation system. The heat exchanger will keep the heated water hot and prevent cold water from cycling through the system.

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Prices have come down over the past several years, and a flat-type solar water heater can provide domestic hot water for three people. Professionally produced plants can cost between $3500 and $6000. The initial cost for a solar thermal system, including installation, is approximately $8000 to $10,000.
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Converting to a solar hot water heater can be expensive, but the cost is much less than the cost of a traditional gas or oil-fired heater. Conversion to a solar hot water heater can be expensive, but it's an excellent option for anyone looking to make a significant environmental impact. In fact, it's cheaper than you might think! There are several benefits to solar water heating.

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One popular method of converting a home to a solar hot water heater is the split-tank approach. This technique uses a series of small tanks. These tanks are connected and the total storage capacity of all of them is determined. When switching off a tank, the user can lower the effective storage capacity. This method is best suited for cold climates, however, and may cost more than the passive approach.
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Adding PV modules to a solar water heater can make it more affordable than ever. A new 30-year mortgage can even include the cost of solar water heaters. The federal income tax deduction will reduce your monthly cost by about three to five percent. The monthly fuel savings will make the solar investment profitable immediately. Solar water heater energy efficiency is measured in solar energy factor and solar fraction. The higher the solar fraction, the more energy efficient the unit.

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A solar water heater can reduce the fuel used in household water heating by as much as fifty to seventy percent. These systems have been used in dozens of countries and have proven their value and range of application. A recent Project Drawdown report ranked solar thermal technology among the top fifty climate change solutions. The technology has experienced a dramatic change since its initial adoption in Israel in the early 2000s, but its potential is still far from being fully exploited.