Connecticut homeowners will get rebates for installing solar powered hot water heaters.

According to the Connecticut Clean Energy Fund web site, homeowners could receive up to a $4,800 rebate for the purchase of a solar powered hot water heating system. The more solar energy generated, the bigger the rebate.

The Connecticut Clean Energy Fund is offering rebates to homeowners and business that purchase solar hot water heaters from approved contractors. The federal government also offers a tax credit of 30% of the purchase price of the solar heaters, with the maximum at $1,500 for improvements made in 2009 and 2010.

The Connecticut Clean Energy Fund website reports that, "solar energy may reduce energy costs for heating water by 50% to 80% because a water heater is typically one of the biggest energy users in a household. The system will pay for itself in an estimated six to ten years, after factoring in incentives and energy savings. Connecticut is devoting $4 million of the $38 million the state received from the federal American Recovery and Reinvestment Act to the solar thermal heating program.