Solar water heaters harness energy from the sun to heat water. The installation cost depends on the system style, size, and complexity. On average, installing a solar water heater costs around $3,722. Prices can vary, with some systems as low as $1,814 and others up to $5,720. The benefits include substantial savings on utility bills and a reduced carbon footprint. The solar panels (also known as collectors) are mounted on the roof or ground. The ideal angle and orientation maximize sun exposure. Roof-mounted systems are common, but ground-mounted options are also available.