Should I install a solar water heater?

A solar water heater uses solar collectors on your roof to preheat water before it enters your conventional water heater, reducing water heating costs by 50 to 80 percent annually. They work well in South Jersey, which receives enough sun even in winter. Installation costs range from $4,000 to $9,000 before federal tax credits, which cover 30 percent of the cost. They typically pay for themselves in 5 to 10 years. You still need a backup conventional heater for cloudy days. Check local incentives and your roof's sun exposure first.