The U.S. solar water heating industry produced a record year of growth in 2008, with a 50% increase in capacity compared to 2007. By the end of 2008, approximately 139 MWTh (MegaWatts Thermal equivalent) was installed, bringing the total installed capacity to about 485 MWTh, according to a report released by the Solar Energy Industries Association.

One of the main reasons for the growth of the solar water heating industry was the extension of the residential and commercial solar investment tax credit. Additionally, the public has become increasingly aware of solar energy options available and more concerned about the overall energy crisis.

Even with the significant growth of the solar water heating industry in 2008, solar energy (solar water heating and photovoltaics combined) accounts for only 1% of the total U.S. energy usage. This small percentage is mainly concentrated in several states, possibly as a result of varying http://www.solarhotusa.com/support.html. The state of Hawaii, with its tax credit of 35% of the cost of a solar hot water installation, accounted for 37% of the total MWTh installed in the U.S. in 2008.

The U.S. currently ranks fourth in the world in installed solar energy capacity (solar water heating and photovoltaics combined). Germany ranks first, with Spain and Japan ranking second and third respectfully.

It is expected that the U.S. solar water heating industry will continue to grow in the coming years as the country confronts the issue of reducing solar energy costs to the same level as that of conventional fossil fuel energy.