Santa Clara Water & Sewer - Solar Water Heating Program
Administered by City of Santa Clara Water & Sewer Utility
You can lease a solar water heating system from Santa Clara's municipal utility instead of buying one outright. The city handles all installation and maintenance under a rental agreement where you pay an upfront installation fee plus monthly service charges based on your system size—for example, pool heating systems cost $4,128 plus $242 per panel to install, then a recurring monthly fee during the six-month heating season (April–September, though systems operate year-round).
This is a direct-to-consumer program administered by Santa Clara Water & Sewer, so customer acquisition flows through the city rather than through private contractors. The program removes purchase barriers by offering lease terms with city-managed installation and maintenance, positioning your firm to focus on complementary services or retrofits rather than solar equipment supply.
Santa Clara operates a municipally-owned solar utility dating to 1975, supplying, installing, and maintaining solar thermal systems (domestic hot water, pool heating, and process heat) on a lease basis across residential and commercial customers. The city retains hardware ownership and handles all maintenance; revenue comes from installation fees and monthly service charges scaled by system capacity (measured in panels). This model transfers capital and operational risk to the municipality while generating stable recurring revenue and supporting local decarbonization.
Program details
- Program ID
- 123
- Last updated
- 8/8/2024
Eligibility
- Sectors
- commercial local government residential
- Technologies
- solar water heat solar thermal process heat solar pool heating
Program summary
In 1975, the City of Santa Clara established the nation's first municipal solar utility. Under the Solar Water Heating Program, the Santa Clara Water & Sewer Utilities Department supplies, installs and maintains solar water heating systems for residents and businesses. In addition, the city has also installed solar energy equipment for a number of its own facilities.
Solar equipment is available from the city for heating swimming pools, process water and domestic hot water. The hardware (solar collectors, controls and storage tanks) is owned and maintained by the city under a rental agreement. The renter pays an initial installation fee and a monthly utility fee. For solar pool heating systems, the installation cost is $4,128 plus $242 per panel. There is a monthly service charge for all systems based on the number of panels. Pool systems are billed a monthly service charge for six billing cycles per year (generally from April to September), although the system is available for use all year.
Contact & resources
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
