Last Updated: 06/26/2015

Solar Thermal (Hot Water) Program

Solar hot water is a renewable alternative to the power we generate with fossil fuels like coal and natural gas. It relies on the sun’s heat energy to produce hot water for your home or business. A typical solar hot water system consists of roof-mounted solar collectors. Cold water is carried to the collectors via pipes and heated by the sun’s energy. Once the water is hot enough, it flows back down into your home’s hot water tank, ready to be used.

Residential, commercial, government, agricultural, and not-for-profit customers interested in installing a solar hot water system can work with a NYSERDA-eligible contractor to apply for support to offset the cost of installation. Support can cover approximately 30 to 50 percent of the installation cost depending on the project.


  • Solar hot water systems can reduce your electric portion of your energy bill up to 20%
  • Solar hot water systems can supply up to 70% of your hot water needs
  • Residential customers can receive up to $6,000 from NYSERDA
  • Non-residential customers can receive up to $150,000 from NYSERDA  per site
  • Solar hot water systems may be eligible for tax credits and other incentives
  • Solar hot water systems are eligible for low-interest financing

NYSERDA pays the installer directly and that amount is deducted from the customer’s contract amount. Solar hot water system owners may also qualify for New York State and federal tax credits. These credits, together with NYSERDA support, can save you as much as $11,000 for a residential system.

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