Great link from MSN:

As more homeowners are discovering, you don’t need a super-hot climate and tens of thousands of dollars to go solar. In many cases, all it takes to offset two-thirds of your hot-water bill is a couple of panels resembling skylights, an 80-gallon water storage tank and some shade-free southern rooftop exposure. Costs range from about $2,000 to $10,000, sums that can be halved thanks to hefty new federal and state incentives. Just last week, California launched a cash-rebate program that will average $1,500 for residents to install solar water heaters at home.

When most people think of solar energy, they imagine using it to generate electricity, and that’s where a lot of buzz and venture-capital investment dollars currently go. But in the average home, harnessing the sun’s free energy for daily hot-water needs can be a more practical and affordable bet. Water heating is the third-largest energy expense in most households, after space heating and air conditioning, according to the Energy Department. This year, Hawaii began mandating solar water heaters in most new homes, and cold-weather locales such as New York and Colorado are among the state leaders in installations.

• Video: Let the home savings flow

Hot water “is the most efficient way to use solar, short of passive solar where you’re using sunlight to warm up tile or stone,” says Monique Hanis of the Solar Energy Industries Association, a trade group that represents manufacturers and installers of solar products for electricity, water and other uses.