It’s no surprise that Solar Thermal has taken the back seat to its more glamorous successor, solar photovoltaic (PV). It could be the mass marketing, the advanced technology, or the million dollar government projects – but ultimately America has its solar attention focused on PV.
Globally commercialized in the 1960’s, solar thermal is a simple concept that uses the sun’s energy to heat water. Because it is such an easy technology to adopt, the worldwide number of solar thermal systems to solar photovoltaic is 10:1. Solar Thermal is cheaper to manufacture, cheaper to install and requires less maintenance. Costing up to 1/3 less than Photovoltaic systems, before federal and state incentives (30%in California), Solar Thermal has a price advantage over a PV system. So with lower costs, shorter payback and easier maintenance, why is solar thermal not more popular?
Over the last decade, the appeal of sustainable energy has grown exponentially. As the growing solar market emerged – companies flooded the PV scene in search of the one goal: to offer quality products that will lower utility costs. Every company hopes to offer their clients the guarantee of a shorter payback period. However, the reality is that costs per watt have continued drop and production costs for PV panels have remained stagnant. As a result, PV systems still cost upwards of $25,000, which results in a payback period of over 15 years. Not exactly the cheap guarantee companies had hoped for when first investing in the technology…
Today, there are too many players and too little profit in the PV market. As America struggles to overcome its economic woes, the demand for extravagant solar systems has taken a plunge. With demand for systems at a low – there is an opportunity for Solar Thermal to use this down time to gain some momentum and increase its popularity.
When it comes to going solar, there is no right or wrong choice – but now more than ever, is the time for people to start looking into solar systems that cost less and provide a shorter payback. Solar thermal is, in most cases, the less expensive form of solar and will help a homeowner or business owner quickly reduce their carbon footprint at a lower cost.


