Before Buying a Geyser This Winter: Check the Cost and Benefits of Solar Water Heaters

Solar water heaters can help households save electricity and reduce bills during winter. Check how much electricity they can save, their prices by capacity, key benefits and government incentives available in India.

Oct 25, 2026, 19:40 IST
Solar Heater (Image: AI Generated)
Solar Heater (Image: AI Generated)

As the winter season is around the corner, the demand for water geysers and heaters will eventually go up. With electricity rates already high, solar water heaters can help households reduce electricity consumption and save valuable money.

The use of solar water heaters in Indian households has risen over the last couple of years, with various solar equipment designed for specific purposes also available in the market. In this article, let's check out the price, benefits and other important details of solar water heaters before buying one this winter.

What is a Solar Water Heater and How Does It Work?

A solar water heater uses sunlight to warm water that can be used for various household activities. This is a little different from traditional solar panels, which generate electricity. A solar water heater uses sunlight to directly produce heat.

The system consists of solar collectors, a storage tank and pipes that help heat and store water for later use. 

Main components of solar water heater system are

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  • Solar Collector( to collect solar energy)

  • Insulated tank (to store hot water)

  • Supporting stand

  • Connecting pipes and instrumentation

  • How Much Does a Solar Water Heater Cost in India?

    The price of a solar water heater depends on various factors and also varies across states and regions. However, the prices published by the Haryana Renewable Energy Development Agency (HAREDA), the cost can vary as follows:

    Capacity
    ETC System
    FPC System
    100 litres per day
    ₹17,000
    ₹24,000
    200 litres per day
    ₹30,000
    ₹39,000
    300 litres per day
    ₹44,000
    ₹55,600
    500 litres per day
    ₹70,000
    ₹88,000

    Source:Haryana Renewable Energy Development Agency

    How Much Electricity Can a Solar Water Heater Save?

    There is no certain criteria to determine how much electricity a solar water heater can save. However, it clearly depends on its usage and various other factors as well.

    However, according to the data published by Vikaspedia, a Government of India knowledge portal, a 100-litre-per-day solar water usage can save approximately 950 units of electricity annually.

    Electricity Rate
    Estimated Annual Savings
    ₹4 per unit
    ₹3,800
    ₹5 per unit
    ₹4,750
    ₹6 per unit
    ₹5,700
    ₹8 per unit
    ₹7,600

    Source:Vikaspedia – Solar Water Heating System

    Is a Government Subsidy Available for Solar Water Heaters?

    This depends on the state and the particular sheme. Under the PM Surya Ghar: Muft Bijli Yojana, financial assistance is provided to eligible families who opt for rooftop solar electricity plants. This assistance cannot be availed by solar water heaters as they use solar energy directly for heating water.

    The Energy Efficiency and Renewable Energy Management Centre of Delhi has an incentive of ₹6,000 for installation of domestic solar water heating systems. But buyers should check the terms of the plan before opting for the incentive.

    Varun Verma

    Senior Executive - Editorial

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