Solar hot water heaters can be a great way to heat water for your home and save some money while doing it.

These heaters can be used in any climate and their only fuel is sunshine.

But, as with some environmentally friendly purchases, you first have to spend a little more money upfront. Thanks to tax incentives, as well as the money you end up saving on fuel, you usually do end up saving money in the long run.

The U.S. Department of Energy’s Energy Efficiency and Renewable Energy  (EERE) reports that the amount of money you save depends on the amount of hot water you use, your location, incentives and the cost of fuel.

On average, the agency reports that a solar water heater can cut your water bills by 50 to 80 percent! An added bonus is that people with these panels are protected from fuel shortages and price hikes (when it comes to heating their water.)

Arlen Dau of Rhode Island installed solar tubes on his house last July. Already, the tubes combined with more insulation and other fixes have reduced his fuel usage by 40 to 50 percent. By next year, he hopes to not really need fuel oil for nine to 10 months.

“I can’t express how great it feels to check the system on a 30 degree day and find we are producing 130 degree water from the sun,“ says Dau.

Dau received state and federal tax incentives for installing the tubes, as well as a tax rebate. These covered about half the cost of the tubes.

The incentives for people installing solar panels or tubes will be even higher this year since incentive limit was lifted. To find out which incentives you qualify for, check out the Database for State Incentives for Renewables and Efficiency’s chart.

Don’t worry if you don’t live in the warmest area. If your home has unshaded areas or faces south, it can be a good candidate for a solar water heating system.

“If you have a house with a clear shot of the sun, this is one of the best value/cost home improvements you can make,” adds Dau. “Beyond the cost recovery, this system’s savings will be with us for many years – long after we have forgotten the initial cost. And, should we ever sell this home, I feel it is easily worth another $10,000 in home value.”

If you want to estimate how much a solar water heating system can save you each year, the EERE has a system to help you determine the possible savings.

It’s my first post for BeGreenMinded.com so it seems only fitting that I give all my new readers a gift for making it through this post. Sound too good to be true? Its not.

We all know about the federal tax credit the Internal Revenue Service (IRS), and many states, offer to consumers who purchase certain hybrid vehicles. What you might not know is that similar tax credits and rebates are available for many other green-minded initiatives you might already be doing in and around your own house.

Ok, so you caught me, the gift isn’t really from me, precisely. But, by utilizing the following information, you might just find yourself basking in the glow of a rebate check or tax refund – and if that’s not a great gift, I don’t know what is!

Energy Star is more than just a cute logo- it could be your ticket to cash in your pocket
Did you know that there are more than 40,000 product models carrying the Energy Star logo and that Americans saved $12 billion on their energy bills by purchasing Energy Star products? Contact your local and state governments to find out if they offer rebates for purchasing certain Energy Star products, especially your major appliances like washers, TVs, and refrigerators.

Hitting up your power company might pay for a quiet dinner out with your sweetie
In Austin, Texas, the local power company offers rebates for purchasing and installing a variety of energy efficient technologies. As strange as it may seem, it benefits power companies to encourage their customers to be energy-wise. Sure they aren’t making that extra buck off of you, but with more energy usage comes the need to increase the amount of energy available and thus, build more power plants – an expensive venture for everyone involved. Do your research before you purchase your next air conditioning system and you could get a rebate for making the energy-efficient choice.

Think you can’t afford solar panels… think again
Federal, state and local rebates can significantly reduce the set-up and equipment costs of installing solar panels on your home. This isn’t just for Californians either. More than 75% of states offer rebate programs to residents interested in getting off the grid and 44% of the country offer tax incentives. Best of all, the federal government just extended their rebate program!

Planning to improve your home in 2009 might pay off
Energy Star isn’t just about the home appliances and electronics you purchase. The program will include some home improvements in 2009 which can help reduce all of your energy bills.

Increasing the water table and decreasing your pollution runoff could payoff
Its not all about energy efficiency, though. In Montgomery County, Maryland, the county government offers rebates to residents who help recreate natural ecosystems to help soil capture and filter rain water, which prevents pollution runoff and erosion, while also recharging groundwater supplies. These projects can be as simple as adding rain barrels to the end of a home’s drainpipes to creating detailed rain gardens. Learn more about the program and encourage your municipality to implement similar programs by sharing these ideas with your elected officials.

The federal, state and local governments have all realized the benefits of voluntary programs aimed at corporate partners, but over the last few years, they have also realized the benefits for individuals and households. Rewarding positive individual consumer behavior today equates to environmental benefits for years to come – and of course the short lived excitement of crisp cash.