Solar water heaters can reduce natural gas use by 75% or more in the buildings that employ them, yet less than 1% of California buildings have the systems installed. A new report from Environment California encourages homeowners and businesses to install the systems, which could save California more than 1.2 billion therms of natural gas annually. The report cites two studies by KEMA-Xenergy that each found solar water heating capable of saving more natural gas than any other energy efficiency technology — about 971 million therms per year in the residential sector and another 219 million therms in commercial buildings. To jumpstart the industry, the report recommends the state enforce quality standards and offer rebates (guaranteed for 10 years) to lower the price of the system. The report also recommends that solar water heaters be installed on all government buildings, and that the systems be deployed on new homes, which reduces the installation costs by up to 50%.

Coinciding with the release of the Environment California report, the Assembly Utilities and Commerce and Natural Resources committees each passed, in mid-April, a bill sponsored by Assemblyman Jared Huffman (D-San Rafael) that seeks to put 200,000 solar water heaters on California rooftops by 2017. The Solar Hot Water and Efficiency Act of 2007, Assembly Bill 1470, would dedicate $250 million to develop a program for solar water heating systems comparable to the California Solar Initiative, which funds solar electric systems. The 10-year program would be funded by a small surcharge on customers’ natural gas bills.

• Read Solar Water Heating: How California Can Reduce Its Dependence on Natural Gas (PDF, 857 KB) Environment California, April 2007
• Read the full text and history of AB 1470
• Read more on energy efficiency and the natural gas market