A new type of solar hot water heating system is now more affordable for homeowners. The system uses solar energy to produce hot water for daily use. Our Allison Lazarz tagged along on the installation of Central New York's first VELUX system and shows us how it works.

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"What it does is it pumps a glycol solution from the basement up through these tubes, which are in the collector on the roof. The sun hits this top plate and warms it up and then sends that heat solution back down," said Andy Wargo, Senior Project Consultant with McClurg.

The warm solution heats the coils in a hot water tank and the coils heat the water. The systems do cost thousands of dollars, but tax credits are making them more affordable.

"Right now, the federal government and the state governments are offering a discount off your federal taxes and your state taxes and you can apply those towards this," said Wargo.

In addition, your annual hot water heating bill can drop between 50 and 80 percent. While saving money is a big advantage of having a solar hot water heater installed, the owner of this home said that's not why he wanted to get one.

"Well, it sounds strange but it really wasn't a motive!" said Vernon Kessler, the owner of the home having the VELUX system installed.

Kessler said he and his wife have always been interested in green ideas and they liked the idea that a solar water heater could reduce their carbon footprint.

"We really couldn't justify it with an economical basis. It's more the interest, or the fact that you're saving some energy. We hope others will follow the example, maybe and people that do have kids and use more hot water," said Kessler.

The systems typically only take one to two days to install.