"...the only heating system that starts to pay for itself as soon as it is turned on with a guaranteed return!"
DOMESTIC HOT WATER RETURN ON INVESTMENT (ROI)*
There are a lot of numbers being thrown around to justify solar investment - some more rational than others. We get ROI questions often at Creative Solar so here's one example that we think is reasonable. But remember, every home and heating requirement is different and subject to its own unique appraisal.
No. in home: 4 (2 adults, 2 children) Cost of 2 collector solar system: $8000 + 15% tax, less $2500 rebates: $6700
Amount to be considered for ROI: $6,700
Heating source/annual cost (NS Dept Energy: Jan 24, 2012): @1.096/L + Tx. = 1.15/L A Amount of oil for heating domestic hot water (DHW): ~ 35% (30%-40% depending on household) Amount that solar will offset: ~ 45% (varies from 25% or less in Dec. to almost 100% in July) of DHW allowance Amount of oil home consumes: 2500L/yr, before solar
Heating oil offset by solar in year one: .45 X (.35 X 2106L) = 332 332 X 1.15 = $381.80 (Based on one year of oil at 1.15 tx incl) Heating oil used in year one:After solar turned on = 2106L
Return on Investment: 5.7% ($381.80÷$6700) in the first year.
Without the solar offset, this homeowner would be paying $4212.22 for heating oil in 2015 based on a minimum annual increase of 10%/Litre.
With the solar offset, the homeowner would save $2330.51* in the first 5 years And, in approx 11 years, the installation will be totally paid for and the system will still be heating the DHW for many more years. (*Assuming a 10%/yr increase in the cost of heating oil)
If we factor in the value added to the home by the installation of the solar system, the ROI will change noticeably. For example, a minimum of $3000 value added to the home = totally paid for in 8 years or less!
NOTE: APPROXIMATION ONLY - EACH HOME MUST BE CONSIDERED INDIVIDUALLY
Additional factors that influence ROI: ♦ Type/quality of solar installation & components ♦ Changes in amount and price of oil consumed ♦ Water usage patterns in the home ♦ Local climate may affect performance ♦ No. & age of full time occupants
SOLAR SIDE: Solar is an inflation protected investment, because it offsets energy costs at current, prevailing retail rates.
Creative Solar Offers Energy Analysis
A detailed analysis of your home's energy consumption and costs is now available from Creative Solar. This analysis will come within +/- 5% of your solar advantage based on the unique characteristics of your home and the type of heating system currently being used for domestic hot water or other applications. Contact Creative Solar for details.
IMPORTANT TO ROI:
The greater the use made of a solar thermal installation, the larger the return on investment. An economy of scale is truly realized when solar is used to support the heating system in the home, in addition to domestic hot water. In-floor heating especially offers a productive use of solar-heated water since the temperature required for those systems is only in the 80-100F range - easily attainable with solar.
Also, when solar is installed primarily to enhance the DHW system and there are a larger number of users, the benefits are easier to measure. According to the National Research Council, Canadians use an average of 75L or more of hot water/day = 300L or 66 Imp. Gal for a family of four. This takes into account all uses in the home.
HOME HEATING OIL 2009-2010: UP 20%+ 2010-2011: ADDITIONAL INCREASE OF 36%!
When calculating your 'return on investment', we need to consider the future of our energy costs. At a minimum, we suggest adding 10% a year as you look forward.
In 5 years (2015) At an increase of 10%/yr, home heating oil would be 1.43/L In 10 years (2020) it would be 2.31/L
Heating oil is subject to volatile pricing, since it is directly tied to the price of a barrel of oil. If ever there was a time to make energy improvements to your home and consider alternative heating options, it is now!
Creative Solar 63 McQuade Lake Crescent, Halifax, Nova Scotia B3S 1C4 Tel. 902-446-8161, Fax. 902-455-1522 E. info@creativesolar.ca
