An attempt is made to conserve conventional fuel by use of solar energ
y. For a given energy demand pattern, conventional fuel can be saved b
y replacing it with a solar hot water system for domestic applications
, including cooking. Numerical computations are also done for the payb
ack period of the solar hot water system in a dynamic economic environ
ment. It is concluded that (a) the payback period is exceptionally low
for complete replacement of electricity (4.98 yr) round the year, and
for the replacement of other fuels, like firewood, cooking gas and ke
rosene oil, the payback period is around 10 yr, and (b) the solar wate
r heater is very economical for round the year use.