Environmental groups also promote decentralised generation via solar panels which could be used to run a heat pump to store hot water during daylight hours. It may be not as efficient but it has a lot of flexibility as it can also run off peak on warm days. Solar water heating limits your generation to daylight hours so your hot water storage needs to be effective enough to store it until needed, which is part of the efficiency equation. If you have a well insulated house with solar gain features daytime heating requirements might be modest with the peak hot water requirement being early morning for bathing, etc. If you can keep water hot overnight then that's fine. In winter months with heat pumps or solar water heating you might need to top it up. Improving insulation of houses should be the big drive, though