A popular option in regions where sunny days are abundant and lower-cost natural gas heating is not available, solar thermal energy for reduces utility costs and produces clean energy. The efficiency and reliability of a solar heating system make it an attractive option to help you reduce both your utility payments and your fossil fuel consumption. U.S. Energy Policy Act recently implemented a 30% tax credit for consumers who install solar water heating systems. Thermal solar systems collect the sun's energy to heat air or a fluid, which then transfers solar heat directly to your home, water, or pool.