In the residential sector, a great part of the electricity goes into heating water by electric water heaters, which results in high CO2 emissions as well as an unprecedented increase in electricity demand leading to an energy crisis. This study offers solar water heaters as a more economical and efficient replacement for electric water heaters. The present study is aimed at investigating the potential for solar water heaters in the subcontinent, especially in India. A feasibility analysis is performed for seven cities in the subcontinent, namely Mumbai, New Delhi, Kolkata, Assam, Gujrat and Madhya Pradesh. Simulated results are based on a solar fraction, equity payback, multiple collectors (one, two or three), horizontal and tilted, type of collector (evacuated tube, glazed and unglazed), electricity saved and greenhouse gas (GHG) emission reduction. The collector’s area is made such that it should receive at least 50% of the solar fraction. The range of payback period varies from five to 15 years. The results show Gujrat being the most ideal site for solar water heaters.