Right now there are tax credits offered from the government for the installation of solar hot water systems. 30% federal and 10% state tax credits are offered, meaning that 40% of the total cost of the system including the installation is returned through a tax credit. There are calculations available to you provided by Solar Logic LLC that can calculate one’s Hot Water needs and how much we can offset your payments to the gas company/electric company. These numbers can give a realistic idea of when someone could have positive cash flow and what they may save over the lifetime of the system.Currently there are federal and New Mexico state tax credits in place for solar hot water, making solar hot water a great buy! The American Recovery and Reinvestment Act of 2009 removed the $2000 Solar Thermal Tax credit cap allowing Americans and the people of New Mexico to take full advantage of their solar thermal investments. This makes solar more affordable by reducing the payback period. Take advantage with Malachite Plumbing and Heating, your full service Solar plumbing and heating contractor.