Although I'm living in Hawaii, I'm in a location that doesn't get
enough consistent sunshine to have solar hot water. So we use a propane fired on-demand hot water heater. Ours is an old Paloma brand, but there are several other brands available out there. We have ours conveniently located so that we can easily turn it on when we want hot water, then turn it off again. That way we use only 1 gallon of propane a month as compared to 3-4 gallons a month. Yes, the pilot light burns a lot of propane.
We've thought about making a wood fired hot water system, but haven't gotten to it yet. One system we're thinking about uses a
rocket mass heater to heat a water filled barrel which has a water coil running through it. One firing
should produce enough hot water for showers, dish washing, etc. Another system we're considering is a
wood stove with a water coil, and piping the hot water to a storage tank. But for right now we're comfortable with using 1 gallon of propane a month. But if the on-demand heater breaks, we will get more serious about constructing a wood fired system.
Only five miles from me, many people use roof mounted solar hot water systems. The households with limited finances use hoses or piping on their roof to run water through in order to heat it up. Some use swimming pool heating mats. Their heated water is stored in hot water tanks. People with more money use commercial solar hot water units. I don't know exactly how they work. But I'm where there is no freezing weather, so the units are probably simplistic. Nothing fancy is needed for freeze protection.