In the present work, solar water heating systems having nominal water usage of 24 cubic meters per day are considered. To identify the better option, both technologically and economically, a typical geographical location in Saudi Arabia, namely Abha, is considered. Internal rate of return (IRR) values for the solar collectors with glazing are found to be higher as compared with that of the unglazed type. The glazed type collectors are found to be more efficient, provide greater savings in fuel consumption, and result in the reduction of greenhouse gas (GHG) emissions. The findings of this study can be used for locations with similar types of climatic conditions in any part of the world.