July 2006

Living Green

How much does solar really save?

Dear Co-op America, Is it worth it to replace my conventional water heater with a solar water heater? — Jane, Seattle, WA

No matter where you live or what your climate, solar water heaters can be a great way to save energy, save money and reduce your household’s greenhouse gas emissions — even in rainy Seattle — making them a very worthwhile investment.

A solar water heater generally costs between $2,000 and $6,000 — but it begins paying for itself immediately with reduced energy bills. The amount you save will depend on many factors, including how much hot water you use, your system’s performance, sunlight in your area and the local cost of conventional fuels, but the US Department of Energy estimates that on average, your energy bill should decrease by between 50 and 80 percent. At that rate, your water heater will pay for itself in about three to five years.

There are tax incentives that make the cost of a solar water heater even cheaper. For any solar water heater placed in service between now and the end of 2007, you can receive a federal tax credit for 30 percent of the system’s cost, with a maximum credit of $2,000. Note that to claim the credit, your system must be certified by the Solar Rating Certification Corporation (solar-rating.org). To find additional state-level tax incentives, visit the Database of State Incentives for Renewable Energy at dsireusa.org.

To learn about the different types of solar water heaters available, start with our article, “Try a Solar Water Heater,” available here.

If your conventional hot water heater is still working, you might want to consider keeping it as a backup.

Living Green is brought to you by Co-op America, a national nonprofit that provides green living, purchasing and investing tips and resources. To join and get a free copy of the National Green Pages™ directory of green businesses, call 800.58.GREEN, coopamerica.org. E-mail Living Green questions to




eco Tip of the month

Offset A Guilty Conscience

Every year, some 16,000 commercial aircraft pump out 600 million tons of carbon dioxide into the atmosphere. Because planes emit pollution high into the air to enter the ozone layer directly, they’re considerably more damaging to the environment than cars (when emitted at ground level, much of the bad stuff evaporates). Every time you fly the friendly skies, you’re putting almost a ton of greenhouse gas into the atmosphere per passenger.

But not every air flight has to turn into a guilt trip. Carbon offsetting is a system that allows you to buy “credits” to offset the eco-impact of your actions. Each credit represents a dollar investment in projects that reduce carbon dioxide and greenhouse gas emissions. And the cost is less than you might expect. The Better World Club (betterworldclub.com), an earth-friendly alternative to AAA, offers members who book plane tickets through its in-house travel agency free carbon offsets on two domestic and one international flight each year. Nonmembers worldwide can purchase offsets — $11 for a domestic flight and $22 for an international flight. Now that’s worth the price of absolution.