Solar Water Heating
Program Description
Oncor will provide cash incentives for the purchase and installation of solar water heating (SWH) systems in qualifying residential and non-residential buildings. Interested property owners, renters, developers, and builders can participate by working with a SWH installer (Service Provider).
A SWH system uses the sun's energy to heat water for activities such as dishwashing, laundry, and showers. Water heating consumes the most energy in a home after space heating and cooling. Water heating accounts for 42 percent of the hospitality industry's energy use and for similar levels of consumption in restaurants, commercial laundries, industrial buildings, dormitories, multifamily housing, and camping facilities.
While a SWH system cannot replace an electric water heater, it can drastically reduce the electricity required for hot water needs, typically by 40% to 85%. The sun's energy is free and can reduce your electricity consumption in an environmentally-friendly way.
SWH systems can range in cost from a few thousand dollars to several thousand dollars depending upon the type and size of the system installed. Incentives are paid to SWH installers; your bill from the installer will show the incentive as a deduction from the installation cost. Oncor's residential incentive reduces an installed system's costs by $1,400 to $2,700, based on the system's predicted performance. The non-residential incentive, available to commercial, industrial, and governmental businesses with less than 250 kW in energy demand, will pay an incentive of $547.71/peak kW savings and $0.38/first year kWh savings for systems installed in existing buildings, and an incentive of $511.20/peak kW savings and $0.35/first year kWh savings for systems installed during a building's construction.
A SWH system really becomes an affordable investment when you combine Oncor's incentive with additional federal tax credits that may be available to you.
Service Providers
Service Providers undergo an application process and enter into a standard contract with Oncor. These Service Providers can be:
- General Energy Efficiency Service Providers
- Retail Electric Providers
- Contractors
- Energy Service Companies (ESCOs)
- Customers
Any listing of Energy Efficiency Service Providers available from this website is not associated with or endorsed by the Public Utility Commission of Texas or Oncor. Oncor is not a party to the agreement between the consumer and the Service Provider. The Service Provider is solely responsible for the performance of the work and contract fulfillment.
Eligibility Requirements
- Properties must be located in Oncor's service area and receive service from an Oncor electric meter.
- Properties may be new construction or existing buildings.
- Non-residential properties must have an annual peak load at or below 250 kW.
- Existing buildings must currently use electric water heating systems. Existing buildings with gas water heating are ineligible.
- New construction must be without gas service to be eligible.
- For single family new construction, the property must be without gas service. Individually metered multifamily new construction properties may have gas service.
- For non-residential new construction, the property must be built without a central gas space heating system.
Oncor's SWH Program offers incentives for low-income households. The low-income incentive covers 95% of system costs up to $3,800. Learn about additional eligibility requirements for the low-income incentive.
Qualifying Solar Water Heater Systems
Qualifying residential SWH systems must be SRCC OG-300 certified. Qualifying non-residential systems must be SRCC OG-300 certified or must have a collector that is OG-100 certified. All systems must be installed by a participating Service Provider. Solar pool heaters do not qualify for the Program.
Program Participation
Property owners, renters, developers, and builders can apply for the Program through a participating Service Providers. If you are a contractor interested in participating in the Program, visit www.texassolarwaterheating.com.
Participating Service Providers
Visit www.texassolarwaterheating.com to find participating service providers.
Low-Income Residential Incentive
Oncor provides enhanced cash incentives to Service Providers for the purchase and installation of solar water heating systems in a limited number of qualifying low-income properties. The low-income incentive covers 95% of system purchase and installation costs, with a maximum incentive of $3,800. Eligible costs include equipment costs and labor costs for onsite preparation, assembly, installation, and interconnection to piping and wiring.
In addition to the eligibility requirements for the regular incentive, residential properties applying for the low-income incentive must meet the following requirements:
Single-family home: The customer must have an annual household income at or below the levels in Table A below.
Table A: 200% of the 2009 Federal Poverty Guidelines
| Size of Family |
Annual Income |
Monthly Income |
Weekly Income |
| 1 |
$21,660 |
$1,805 |
$417 |
| 2 |
$29,140 |
$2,428 |
$560 |
| 3 |
$36,620 |
$3,052 |
$704 |
| 4 |
$44,100 |
$3,675 |
$848 |
| 5 |
$51,580 |
$4,298 |
$992 |
| 6 |
$59,060 |
$4,921 |
$1,136 |
| 7 |
$66,540 |
$5,545 |
$1,280 |
| 8 |
$74,020 |
$6,168 |
$1,423 |
For families with more than 8 persons, add $7,480 for each additional person.
Multi-family residential property: At least 75% of the units must be rented by customers with an annual household income at or below the levels in the table above; OR
- The property must participate in one or more of the programs listed below:
- Public Housing Authority
- Housing Trust Fund
- Multi-Family Bond Program, with less than 25% of the units at market rate
- Low-Income Housing Tax Credit Program, with less than 25% of the units at market rate
- Project-Based Section 8
- Affordable Housing Disposition Program
- HOME Rental Housing Development
- Rural Rental Section 515 (FMHA)
Program Participation Documents
Program Brochure
U.S. Department of Energy Consumer's Guide to Energy Efficiency and Renewable Energy
U.S. Department of Energy Building Technologies Program: Commercial Building Water Heating
U. S. Department of Energy Solar Energy Technologies Program
Contact Information for Participation
Phone 1.866.728.3674
E-mail eecustinfo@oncor.com