SOLAR POOL HEATING
COSTS AND INCENTIVES

From our observations, Solar Pool Heating Systems range in price from $3,000.00 to $12,000.00 installed. The reason for this huge disparity in price is due strictly to the size pool you have, the number of panels you use to heat it, and the complexity of the installation. Most commonly systems are in the $4,000.00 to $7,000.00 range. To find out more on how these systems are sized and work click here or go to our FAQ page for pool heating.

Ours prices are higher than many and lower than others. What we feel we offer better than most, is our hands on approach to each and every install. Even before a job is started, we bring to each potential project personal and courteous customer service. This is something we provide all along. We pick up our phones. If we are going to be late or if there is some deviation from expectations, we are on the phone discussing it. We also like to think of our installations as pieces of art, masterfully installed. We care about the quality of the components used and the eye for detail installations should have.

There are a couple of site specific technical specifications concerning your potential solar site which one has to be aware of. One of the first things you want to think about when considering solar is how good of a solar site you have. The incentives that exist are only really meant to incent solar systems placed on the most optimal of locations. In other words, in order to get your hands on these incentives, your house has to have a roof that has access to 75% or more of the seasonal sun. This means you really can’t have any shade falling on the roof where you want your solar system installed from 9am to 5pm from April to October. One’s roof does have that 25% leeway, but it gets used up pretty fast. The other specification to be aware of is the life left remaining on your roof. The Energy Trust, especially, wants the roof your solar system goes on to have at least 15 years or more left remaining on it. If this is not something you can remember or verify and the roof life is a bit iffy, you should call a home inspector or a roofer to come on out and take a look at things. Make sure they leave you something in writing as proof you have 15 years or more left remaining on your roof. Finally, don’t feel you can’t go solar just because you don’t have a perfect solar site and are not eligible for the incentives. Every year Solar Energy Solutions, Inc. installs solar systems which fall outside of the ideal scenario the incentives are set up to support. The incentives are great, but not essential to an installation occurring.

Before we go any further we should probably address the issue of… Payback. Simply put, it is G R E A T. Solar systems for heating pool are the only solar application where there is a good simple payback. These solar pool heating systems usually pay for themselves in three to six years. Not only that, but you will be adding a month or two onto your swimming season by heating your pool earlier and later in the year. Additionally you will be greatly increasing the value of your pool because it will be used much, much more due to the fact that it will be warm. People will no longer hesitate to jump into your pool and rushing, blue lipped, out of it. Instead, there will be a greatly increased use and enjoyment derived from its increased warmth. All of this increase warmth will not cost you a dime. It will be FREE!

There are other strong economic reasons to considering going solar as well. A Solar Pool Heating System will quadruple in value over the course of 10 years due to energy prices quadrupling every ten years or so. Solar Pool Heating Systems will give you a 10% to 20% return on investment that is completely risk free and tax free. That is pretty exciting. And, solar systems increase your property value by the cost of the systems, yet because of the incentives, only cost you a fraction of that total. Of course, my favorite incentive is conservation.

In addition to all of these great reasons to install a Solar Pool Heating System, there are currently two entities which incent the installation of Solar Pool Heating Systems; the Energy Trust of Oregon and the Oregon Department of Energy, through a State Income Tax Credit.

The Energy Trust of Oregon is an entity formed in 2005. It exists and is funded by money it receives through PGE, Pacific Power and Northwest Natural Gas. There are also a number of smaller utilities that pay into the program. If you do not heat your pool using one of these utility companies, or have access to them, you will not get the Energy Trust Incentive. These utility companies take 3% of the money we pay them in our bills and redirect it to the Energy Trust. The Energy Trust then redistributes this money into Renewable Energy, and energy conservation programs. The way this pens out for solar is in direct Reduction in Price Incentives. The reduction in price incentive varies by system performance, which in this case depends on the total square footage of solar pool heating panels you install, and tops out at $1,000.00. The greater the energy savings, and the more Solar Pool Heating panels you install, the greater the reduction in price incentive from the Energy Trust. For Example: If you had Solar Energy Solutions, Inc. install a Solar Pool Heating System that cost $5,000.00 and you heated your pool with Northwest Natural Gas, you would qualify for an $840.00 reduction in price incentive. This $840.00 comes right off the top of what you would otherwise pay Solar Energy Solutions, Inc. This means your out of pocket cost to Solar Energy Solutions, Inc would be $4,160.00.

$5,000.00 Installed cost

- $840.00 Minus Energy Trust Incentive

$4,160.00 Equals your out of pocket cost.

Remember, different sized systems qualify for different incentives.

The Oregon Department of Energy has been on the cutting edge of encouraging people to go solar with tax credits since 1986. Oregon’s state income tax credit program for solar has always been an example to the rest of the nation as one of the best. Like the incentive from the Energy Trust of Oregon, the State Income Tax Credit is based on the performance of a system. With Solar Pool Heating, this means the more Solar Pool Heating Panels you install the greater you incentives. Different sized systems qualify for different tax credit incentives. Also, like the Energy Trust, the state is only looking to incent ideal solar scenarios. The Oregon Department of Energy is a little looser than the Energy Trust and does not have a roofing specification and allows lesser tax credits for systems mounted on roofs with 50% to 75% of the season available sun. The maximum state income tax credit for a Solar Pool Heating System is $1,500.00. You get this tax credit incentive when you file your state income taxes. Remember, this is a tax credit, not a tax deduction. Tax credits are better than tax deductions because they come right off of you state income tax liability. For Example: Say you have paid the State of Oregon $4,000.00 in income taxes throughout the course of the year. Because of deductions and allowances, say you get $500.00 back. Well, if you install a large enough Solar Pool Heating System you get back $1,500.00, additionally. People are always complaining about how they never get anything for their tax dollar. Here is a way you can get your tax dollar right back into your pocket and install a solar system to boot. Remember, you have to pay a state income tax in order to get the tax credit. If your income tax liability is low, the state gives you up to 5 years to absorb the full amount.

I remember when I received my $1,500.00 tax credit when I installed my solar hot water system in 1992. In was an afternoon in May and I was doing some office work when I heard the Mailman come to the door. On this particular day he only had one piece of mail and it was from the Oregon Department of Revenue. With one eye closed and the other half open, I opened the letter wondering what the bad news could be. But then, as I peaked inside, what should my wary eyes see?... A check for $1,500 bucks. Yippee! I said as I ran through the offices yelling, “Isn’t government GREAT!” How often can a person yell that?!

To summarize. If Solar Energy Solutions, Inc. installs the $5,000.00 system mentioned above, it would qualify for the Energy Trust of Oregon reduction in price incentive of $840.00. It would also qualify for the State income tax credit of $1,500.00. This means under this scenario, there would be a total of $2,340.00 in incentives. This would ultimately bring your total system cost down from $5,000.00 to $2,660.00. WOW!

$5,000.00 Installed Cost

- $840.00 Minus the Energy Trust reduction in price incentive

$4,160.00 Out of pocket cost

- $1,500.00 Minus State Income Tax Credit

$2,660.00 Net Cost!