The majority of single-family houses in Bosnia and Herzegovina (B&H) consume a significant amount of electricity for domestic hot water (DHW) production.This paper explores the potential of solar energy as an alternative for DHW preparation in these households. Calculations based on the EN 15316-4-3 standard and the “F-chart” method were used to estimate the required heat energy for DHW preparation, solar contribution, system heat losses, and installation costs in a typical single-family house. The analysis revealed that solar energy covers approximately 58% of the heat demand for DHW. The calculations were made for a high level of comfort, significantly impacting the required heat energy. The investment payback period for a solar water heating system was estimated at 15 years. However, this long payback period is influenced by Bosnia and Herzegovina's currently low electricity prices, among the lowest in Europe. With the planned introduction of CO₂ taxes on thermal power plants, electricity from fossil fuels, which are the dominant energy source in B&H, is expected to become less competitive, potentially increasing electricity prices. These changes can improve the economic viability of solar DHW systems.