A major advantage of solar thermal energy is that it can be easily stored for use as needed. This is done by using highly insulated solar hot water tanks to store the energy. The energy can then be pulled out during the evenings or as needed. Unlike solar PV there are no costly batteries, charge controllers or inverters that that are needed, just a simple solar water tank is all that is used.
For homeowners and commercial businesses that want to save money and invest in Green Energy, solar thermal water heater systems are more practical to provide direct heat energy than using Photo Voltaic energy to create heat. A home owner can buy a simple solar domestic hot water heater for as little as $3000. The investment also is eligible for tax incentives that in some states in the US can be as high as 80% of the cost. This make solar water heating an ideal investment with great returns for residential and commercial heating applications.