California officials are working to give the state's homeowners more reasons than ever to invest in solar water heaters, which can provide considerable savings on household utility costs while also helping the environment.

According to an announcement from the California Public Utilities Commission, it has established a thermal program that will provide incentives for the installation of solar water heaters in both new and existing homes that fall into the service territory of four of the state's largest utility companies.

"We've structured the incentives so they are based on the performance of solar water heating systems in order to promote the adoption of high-performing systems," said Michael Peevey, president of the commission.

If enacted successfully, the program would save up to 585 million therms of energy, equivalent to placing a solar water heater on about 200,000 average homes.

Along with promoting the installation of solar water heaters, the commission is also hoping to further reduce natural gas consumption by encouraging the adoption of new solar thermal technologies for individual homes.