Solar water heaters—also called solar domestic hot water systems—can be a cost-effective way to generate hot water for your home. They can be used in any climate, and the fuel they use—sunshine—is free.
Solar water heating systems include storage tanks and solar collectors. There are two types of solar water heating systems: active, which have circulating pumps and controls, and passive, which don't.
Most solar water heaters require a well-insulated storage tank. Solar storage tanks have an additional outlet and inlet connected to and from the collector. In two-tank systems, the solar water heater preheats water before it enters the conventional water heater. In one-tank systems, the back-up heater is combined with the solar storage in one tank.
Passive solar water heating systems are typically less expensive than active systems, but they're usually not as efficient. However, passive systems can be more reliable and may last longer.


Solar water heating systems almost always require a backup system for cloudy days and times of increased demand. Conventional storage water heaters usually provide backup and may already be part of the solar system package. A backup system may also be part of the solar collector, such as rooftop tanks with thermosyphon systems. Since an integral-collector storage system already stores hot water in addition to collecting solar heat, it may be packaged with a demand (tankless or instantaneous) water heater for backup.
Source Material: US Dept. of Energy