A conventional, electric hot water heater is one of the biggest draws of power, and your hard-earned dollars, in your home. Up to 40 percent of the average monthly utility bill is due entirely to this appliance. Compared to other common appliances, an electric hot water heater can demand almost the twice the amount of energy a month required to run a room air conditioning unit and more than five times the amount of electricity needed to power a clothes dryer. Installing a solar hot water heater is one of the first steps you should take to make your home more energy efficient and save some dough. By having a HECO-approved solar contractor install the system, you can save an additional $1,000 right off the top and are eligible for state and federal tax credits.

Letís add up the savings:
$5,500 ‚ Initial cost of a quality solar hot water system
$1,000 ‚ HECO/MECO/HELCO rebate
$4,500 ‚ Total Due
$1,575 ‚ 35% state tax credit
$1,350 ‚ 30% federal tax credit
$1,575 ‚ Net cost after incentives
At that price, solar hot water systems pay for themselves in two to three years.

Hot doesn't have to burn:
Keep the thermostat on your hot water heater set at 120°F to 125°F. Reducing the water temperature saves water by reducing heat loss.

Wrap it up:
If the tank is warm to the touch, insulate it. Insulating your water heaterís storage tank can reduce stand-by heat loss by 25 to 45 percent, which translates to a 4 to 9 percent savings in heating costs.

The Scout:
HECO offers a $3 credit every month for those eligible and willing to install a free Energy Scout radio device that can temporarily turn off your water heater during times of emergency.

Size matters:
Make sure to select the proper water heater tank size. The U.S. Department of Energy recommends a 60-gallon storage tank for one to three people and an 80-gallon tank for three to four people. If the tank is too large, energy will be wasted by keeping a greater volume of water hot. If itís too small, hot water may run out. Yikes.

Saving up for solar:
In the meantime, install a timer on your electric hot water heater to limit heating to an hour in the early morning and an hour in the evening, just before you usually use hot water.