Solar water heating is one of the most widely used solar technologies in the world today. The number of solar water heater installations is going up, impacting solar water heater price.

Solar water heater price varies in different parts of the world. Warmer climates, like in India, do not need to depend on added anti-freeze technology; thus the basic passive type of model is the most cost-effective. Using larger solar water heating systems is cheaper, and there are also DIY kits that lower the solar water heater price. Government subsidies can also lower the solar water heater price, like in Belgium, where there is a 50% discount, or in the UK, where there is a 10% subsidy.

Like all solar products, a solar water heater is also expensive, but the solar water heater price of annual operation is much less than for a standard heater and it also guarantees a return on investment which the conventional one does not.

There are two types of solar water heaters: active and passive. Essentially, active ones employ a pump to circulate the water, whereas passive ones rely on gravity for flow. A passive solar water heater price is lower than an active one.


Coming specifically to the subcontinent, the solar water heater price in India varies according to type and model. Since solar water heating can also be used industrially, bulk orders can range anywhere from $100-$2000. A single unit can cost between Rs.13,000-25,000, depending on capacity.

To get a clearer idea, let’s compare solar water heater price in India to solar water heater price in other countries: in the US, with a subsidy of 35%, the effective cost is $3500; in Brazil, a solar water heater costs 2500 Reals; in China, a basic model starts at 1500 Yuan ($190). The solar water heater price in India is somewhere in the middle – not as expensive as in the western world, and not as cheap as in China. Considering out all of new installations in 2007, only 1.1% were in India (80% in China), there is a definite potential for India’s solar water heater market to go up and solar water heater price in India to come down.

With 1.1% of market in 2005 and 1.7% in 2010, consumers in India are growing surer of solar water heaters. Only some states offer rebates, bringing down the solar water heater price paid by the consumer. The government also offers 100% depreciation claim during the first year for commercial use, but the solar water heater price in India is yet not as competitive as traditional heaters.

Another key factor which determines solar water heater price in India is accessibility, which is currently low as compared to, say, China.

There is a potential for the solar water heater price in India to decrease in the coming years, but demand needs to pick up to give developers an incentive to place more units in the market and lower their price.