I'm jumping in at the end of the thread without reading all posting, so forgive me if I'm repeating what others have said. Broadly speaking, I agree that using PV to make hot water can make a lot of sense. A few years ago I decided to get a grid-connected domestic PV system, and conventional solar hot water. I got the PV system first, and left an area on the roof for the hot water solar collector. The I started thinking. A decent solar hot system that can provide 100% hot water needs is quite expensive, and also complex with pipework and circulation pump. If you size it big enough to provide all your HW needs in winter, then it will be way oversized and under-utilized in summer, possibly have boiling problems in summer as a result, and in my climate you have additional complexity to prevent freezing in winter. Fortunately I saw the light before installing the solar HW. Just in raw economic terms, I was better off just to add 1.5 kW or so of panels to my PV system, and get a bigger inverter, which is reason enough to go that way. However, when you think of all the other advantages of the PV approach, I would need to have had rocks in my head to proceed with the solar HW. No messy plumbing to the roof, no circulation pump, no boiling or freezing issues, but there are even more advantages. Most of the time, the solar HW would have had excess capacity, that is wasted. With the PV, when there is excess capacity, you can use it for other useful things, or sell it back to the utility company, to be usefully used by someone else, both saving you even more money, not to mention being environmentally desirable.
There is much talk about using batteries on domestic PV systems, to better match PV production to demand, but PV hot water storage systems can do much the same thing at very low cost, if cleverly controlled, yet another advantage. I am about to build a controller that only diverts my PV output to the HW system when there is excess PV power available. For example, in the early morning and late afternoon, all my PV output is available for my domestic use, minimizing or eliminating my drain on the grid at the precise time when community demand is high, and PV generation (all PV generation, not just mine) is low. In the middle of the day, when the panels are really pumping out the kW far in excess of my needs, then the excess power is used to heat the hot water. Quite literally, I'm using the stored energy of the hot water as if it was an electrical battery, with the storage capacity of a large, expensive battery, but without the cost and dubious environmental credentials of a battery, when the limited life and large quantity of materials that go into making the battery are considered. If everyone had a smart PV HWS like me, this would have a profoundly beneficial effect on the power grid, flattening out the PV production over the day. I know that our electricity utility is quite worried about the problems that large numbers of PV installations would cause, with fluctuating PV production, and smart domestic HW systems could be of great benefit here, at essentially no cost. A decent controller must be capable of proportionally controlling the amount of electrical power made available to the HW system, for example using triac phase control, or time-proportioning. In this way, for example, if there is only 1kW of excess PV power available from a 5kW system, then exactly and precisely that 1kW will be made available for water heating. PV water heating with smart control has a very big future, I would predict. The system can respond fast to changing environmental conditions. Even if a cloud blows over for a few minutes, the (reduced) PV output will be removed or wound back from the HW system, then made available again when the cloud has passed. Thus is not academic. Our utility company is studying methods of measuring the moving clouds over tthe city, so they know in advance that an entire suburb(s) are about to have their PV generation become reduced, so they can quickly switch in additional power to compensate. Smart PV HW systems would be a Godsend.
With the low cost of PV panels, direct-solar HW systems are obsolete technology as far as I am concerned. Circumstances vary, but in many situations, mine included, you really would need to have rocks in your head to even consider installing a solar HW system.