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Floridians see their electric bills go through the roof during July, August and September and don’t need to be told that air conditioning uses a lot of electricity. On the other hand, while you may use hardly any air conditioning during March, April and November, that big 3,500 to 4,500-watt heating element in your water heater is burning away every day of the year. (Some high-recovery models have two heating elements.) At today’s electric rates (including fuel surcharges and utility taxes) of around 14 to 15 cents per kilowatt hour, water heating can easily cost $800 to $1,200 each year for a three to five person household. In South Florida, a solar water heater can almost completely eliminate this portion of your electric bill.
Naturally, switching to solar water heating means going green in a big way. but you might also be surprised to learn that solar water heating gives you benefits that improve upon conventional electric or gas water heaters:

The pie chart above shows where the money goes in a typical Florida family’s annual electric bill. The chart is based upon an electric power consumption study by the U.S. Department of Energy’s Lawrence Berkeley National Laboratory. The “typical” Florida household and energy use pattern shown above is based upon these factors:
Actually, an active American family of four is probably closer to 100 gallons per average day and just over $1,000 per year at 14 cents per kilowatt-hour. Here is an example that shows how a four-person household can easily use 100 gallons of hot water per day:
If you happen to have small children, each bath averages about three gallons less hot water than a shower. However, if you happen to have two active teenagers, each taking two showers a day and perhaps creating two or three extra loads of laundry per week, the total can easily jump to over 120 gallons per day. Heating 120 gallons per day from 72°F to 140°F, at 14 cents per kilowatt-hour, costs about $100 per month.
Because incoming solar radiation—called insolation—is often interrupted by cloudy or rainy weather and fluctuates in intensity with seasonal changes in the sun’s position in the sky, solar water heating systems are usually sized to collect and store an entire 24 hours or more worth of energy to meet hot water demand. A modern solar water heating system storage tank will usually have a backup electric heating element to meet unusual peaks in hot water use or extended periods of very cloudy or rainy weather.
While solar thermal water heating systems are viewed as “pre-heating” systems in many regions of North America, the sunbelt states enjoy solar insolation levels that allow solar potable water heating systems to economically meet 85 to 90 percent of the annual hot water need.