The solar water heater industry in South Florida: History and projections

Solar water heaters were a commercial success because they offered homeowners a system for heating water which was economically superior to either electric or gas units. In 1938 a solar user could recover his initial investment from fuel cost savings in less than 2 yr and anticipate a seemingly endless supply of free hot water.By the early 1950s, however, three primary forces combined to reduce the industry to a few firms whose principal solar activity was the repair or replacement of water storage tanks. (1) The rapid decline in electricity rates along with the increasing first cost of installing a solar unit reversed the economic advantage of the solar approach. (2) The widely held opinion that solar systems would last indefinitely was abruptly altered when the water storage tanks began to develop leaks. Tank failures often caused considerable damage and became increasingly costly to repair. (3) The emergence of the large scale builder-developer largely removed the choice of hot water system from the individual homeowner. In his efforts to be first-cost competitive, the developer installed the less expensive conventional hot water unit rather than the solar unit.Recent developments in energy prices and availability, however, have produced an economic environment more promising to a resurgence of solar water heating. Under certain potentially realistic first-cost estimates and projected fuel price increases, a strong economic argument in favor of solar water heaters can be made. Further, homeowner attitudes toward solar units are generally positive and receptive to considering the solar alternatives.