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Case Study: Solar Hot Water Costs for a California Fitness Center

12 Free Hot Water 700 Series Panels on Roof, Santa Cruz, California

When fitness center owners think of operation costs, they don’t necessarily think of their utility bills… until they get it. Every month.

The truth is that water heating costs can be substantial for a busy gym or athletic club. Think about it:

  • Many club members hit the hot water showers and/or steam bath.
  • The white fluffy towels handed to members for work-outs and post-workout showers have to be washed every day—sometimes multiple times a day.
  • The club’s café uses hot water to wash glasses, dishes, and cookware
  • The swimming pools and Jacuzzis are in constant need of hot water.

In the past, water-heating costs were just the cost of doing business. You had to pay your gas utility bill, and that was that. Today, California Fitness Centers have a new and very cost-effective solution: Installing solar hot water.

Below is a real-life example of a solar hot water installation at a California fitness center that pays an average of $2,200 a year in hot water costs, excluding the pool heating costs. (At this time, the pool heating portion of hot water costs is not eligible for state and federal solar rebates.)

Thanks to Federal and state incentives, the payback time is in 5.45 years—and remember that solar hot water systems can last 25 years or longer with very little maintenance. So after year 5.45, this fitness center is benefiting from ….Free Hot Water

 Solar Hot Water Cost and Savings Example for a California Fitness Center
 Utility  PG&E
 Minimum Daily Demand @ 80% BTU  340,031
 Est. Water Storage Requirements  330 Gallons
 # of Free Hot Water 7000 collectors:  12 panels
 Roof area required:  91 sq. ft
 Est. gas bill for hot water before solar:  $2,200
 Est. Cost before rebate, incl. engineering  $40,000
 Estimated California Rebate:  $ -16,000
 Estimated 30% Federal Tax Credit:  $ -12,000*
 Estimated Net System Cost:  $12,000
 Estimated Payback time:  5.45 yrs!
 CO2 Saved from the environment over 25  years:  200 Metric Tons
   

* Modified Accelerated Cost Recovery System (MACRS) in 5 yrs may be available and is not included in the ROI calculations. Please consult with your tax attorney as for your eligibility.

This is just one example of a fitness center chain that has 4 locations. But just think:

  • There are over 400 24-Hour Fitness Center facilities nationwide. If each installed a similar system to the one above, the chain would at least remove 3,200 metric tons per year of CO2, or 80,000 metric tons of Co2 over 25 years!
  • There are over 600 Gold’s Gym locations. If each of them went solar hot water, they would pull about 4,800 tons of CO2 per year, or 120,000 tons over 25 years.
  • If Bally’s Total Fitness Centers made all of their 400 locations solar hot water, they would also save 3,200/year or 80,000 metric tons over 25 years.
  • And we didn’t even mention the utility cost savings–which will vary in every state and location.

Every fitness center has different needs, which means that the above example is only accurate for this particular installation. There are many reasons why systems must be custom designed:

  • Some fitness centers have pools, and even then, different size pools that are kept at different temperatures.
  • Every fitness center has a different number of showers
  • Every fitness center has unique number of members who typically take showers.
  • Some fitness centers use a laundry services instead of washing their own towels.
  • Laundry machines are also different. Some use more or less hot water.
  • We haven’t even talked about solar specifics, such as the type of roof , shading, and sun hours in a particular area.

The good news is that while the above case study may not apply to you, solar hot water installers always offer a free estimate for solar hot water system that is tailored to your needs.

Questions? Please contact us. Our consultants will help determine if solar hot water is right for you.

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