Adequate and consistent energy supply is often regarded as a major factor in the development of any country. To add to this, the depletion of fossil fuels has also emphasised the need for alternate renewable energy solutions to meet global energy needs without inflicting any serious environmental impacts. Solar energy is globally acknowledged for its vast potential, as a source of providing most of the heating, cooling and electricity needs of the world. One of the most effective uses of solar energy is water heating. The use of solar energy to heat water has been proven to be a very economical, efficient and environmental friendly option for domestic as well as commercial applications. This study compares the feasibility of domestic solar water heater installation in three major cities of Pakistan i.e. Lahore, Karachi and Peshawar. The results show the solar water heater installation is most feasible in Peshawar, among the three selected cities.