Alternative technologies for US residential water heating : Energy savings and economic benefits

This article evaluates the energy savings and direct economic benefits of introducing heat pump and solar water heaters to the US residential market and the effects of a tax credit for solar installations. Energy savings are estimated for ten regions of the USA, as well as for the country as a whole, over the period 1977–2000. Changes in annual fuel bills and capital costs for water heaters are also computed. The results suggest that heat pump water heaters are likely to offer much larger benefits than solar heaters, even with tax credits. This is because heat pumps provide the same electricity savings (about 50%), but at a much lower capital cost.