Solar hot water in Australia

Rooftop panel in Laidley, Queensland, 2015

Solar hot water is water heated using natural energy from the sun. Solar energy heats up large panels called thermal collectors. The energy is transferred through a fluid (often water) to a reservoir tank for storage and subsequent use. It is then used to heat water for commercial or domestic use and also as an energy input for heating and cooling devices and for industrial 'process heat' applications.

Solar hot water systems are motivated by the desire to reduce energy consumption more specifically, to reduce a significant source of greenhouse gas emissions. In the case of Victoria, for example, converting from electric to solar hot water could save 20% of the state's total greenhouse gas emissions.^[1]

Despite an excellent solar resource, the penetration of solar water heaters in the Australian domestic market is only about 4% or 5%, with new dwellings accounting for most sales.^[2][3]

During the 1950s, Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) carried out world leading research into flat plate solar water heaters.^[4] A solar water heater manufacturing industry was subsequently established in Australia and a large proportion of the manufactured product was exported. Four of the original companies are still in business and the manufacturing base has now expanded to 24 companies.

Water heating is the largest single source of greenhouse gas emissions from the average Australian home, accounting for around 28 per cent of home energy use (excluding the family car). The Australian government estimates that installing a climate friendly hot water system can save a family $300 to $700 off electricity bills each year.^[5]

Australian government's solar hot water rebate program

The solar hot water rebate program^[6] for financial year 2009 offered a $1600 rebate for the installation of solar hot water systems.

The rebate can be collected once the installation has been finished, if the household meets the necessary requirements stated below.

• The solar hot water system is a substitute for a previous electric heating system
• The application and the installation process has taken place within the dates the rebate is offered
• The household is a principal place of residence
• The solar or heat pump hot water system is be eligible for minimum 20 Renewable Energy Certificates (RECs)
• A licensed plumber or electrician is consulted for the installation

Once the system is installed, the applicant has up to six months to submit the application form with the purchase receipt attached to it.

The mandatory renewable energy target^[7] scheme was created by the Australian government to mandate energy retailers to the usage of renewables. Each solar heating system is accredited a certain number of RECs depending on how effective it is and in which of the four climate zones^[8] one resides. Each zone is associated with a number of post codes ranging across the whole continent.

When the system is in use, you will receive your RECs that you are then able to sell to energy retailers. The market value of RECs is subject to variation.^[9] Depending on the current market conditions and the performance of the unit installed, this often amounts to $1000 or more.

It is important to determine how many RECs the solar water heater is entitled to before installing, so that you know you are actually eligible of the rebate.^[10]

Solar hot water in the Australian states

ACT

The ACT Energy Wise program,^[11] run by the ACT Government, offers rebates to houseowners or tenants that do energy saving improvements for at least $2000 to their residence. This includes everything from insulation, inserting double glazed windows to the installation of solar, gas or electric heat pump water heating systems.

Only the first $1000 of the cost of the installation of the water heating system (which replaces the existing electric heating system) can be used to calculate the $2000 to be used on improvements. This means that to receive the rebate, the householder needs to spend another $1000 on additional energy savings. Read the terms and conditions very carefully, making sure that the system you are installing is eligible for the rebate. Please see Home Energy Audit Terms and Conditions.^[11]

In addition, to be eligible the rebate of $500 the householder/tenant must:

• Have an energy audit by HEAT ($30) (Ph 02 6260 6165 or email: info@heat.net.au).
• Be able to give detailed information about the residence's energy usage during the past year.
• Be able to show receipts from the renovations and improvements made.
• Lodge the application with attached receipts within six months after the energy audit.
• Not have received any other rebate under another program.

New South Wales

The NSW Residential rebate program,^[12] running from 01/10 2007 to 30/06 2009, offered all house owners in NSW a rebate on systems that were replacing existing electric hot water systems.

The more efficient the system (emitting less Greenhouse gas), the more RECs the system was eligible for, generating a higher rebate.

Northern Territory

Power and Water Corporation, the principal water and electricity supplier in the Northern Territory, offers an REC buyback scheme on installations of solar water heaters.^[13] The buyback must be applied for and assigned less than one year after the installation.^[13]

Queensland

The Queensland Government's Solar hot water rebate scheme finished on 30 June 2005.^[14]

No state rebates are offered at the present, however the Queensland government in 2007 announced the phasing-out of electric hot water systems commencing in 2010.^[15] From 2010, Queenslanders who need to replace their household hot water system due to breakdown will no longer be able to install electric systems, and will instead have to choose from gas, solar or heat pump options. Prior to this, the Queensland government had already banned the installation of electric hot water systems in newly constructed houses; a law which came into effect on 1 March 2006. The ban on electric hot water systems was repealed on the 1 January 2013 and currently Queenslanders are permitted to install electric hot water systems. ^[16]

The Brisbane City Council offered a rebate of $400 from 30 August 2008 to 1 June 2009. This program is now over.

South Australia

In accordance with the South Australian Government rebate scheme,^[17] starting 2008-07-01, anyone who is installing or replacing a water heater must install a low-greenhouse one.^[18] The rebate scheme is aiming towards giving less fortunate people a financial incentive to the use of gas, heat pump or solar energy to heat water.

To be eligible for the $500^[17] rebate, the householder has to hold at least one of the following concession cards:

• Centrelink Health Care Card
• Centrelink Pensioner Concession Card
• DVA Gold Card – Totally and Permanently Incapacitated
• DVA Gold Card - War Widow
• DVA - Extreme Disablement Adjustment

Following to the installation, the householder has up to three months to send in the application to receive the rebate if the below criteria is met.

The water heating system does not replace existing one:

The water heating system does replace existing one:

Tasmania

No Rebates other than the Federal Government's are offered by the Tasmanian Government at the moment.

Victoria

Sustainability Victoria’s solar hot water program,^[19] sponsored by the Victorian government, offers rebates to householders who have installed a system abides that the following criteria:

• Acts as a replacement of a natural gas or LPG water heater with a gas-boosted solar-system
• Is a solar driven pre-heater, which is additional to an existing natural gas of LPG water heating system
• Is a retrofit kit, which is additional to an existing electric water heater

New houses and buildings can get a rebate by selling the RECs their system is eligible. The Commonwealth government is also offering a $1000 rebate to the replacement of electric water heating.

Residential and community buildings:

Commercial buildings:

Western Australia

By installing an environmentally friendly, gas-boosted solar water heater that replaces a previous water electric heating system, you are eligible of the Government of Western Australia’s rebate^[20] .

See also

• Mitigation of global warming in Australia
• Photovoltaic engineering in Australia
• Renewable energy commercialisation in Australia
• Solar Cities in Australia
• Solar power station in Victoria
• Solar power plants in Central Australia

References

Energy in Australia Energy policy of Australia Fossil Fuel Industry Biofuel in Australia Green electricity in Australia Coal in Australia Australian Uranium Association Petroleum industry in Western Australia Renewable Energy Industry Carbon capture and storage in Australia Renewable energy in Australia Solar hot water in Australia Solar power in Australia Solar thermal energy in Australia Wave power in Australia Wind power in Australia Policies and Targets Asia-Pacific Emissions Trading Forum Carbon pricing in Australia Effects of global warming on Australia Energy Efficient Homes Package Feed-in tariffs in Australia Mandatory renewable energy targets Mitigation of global warming in Australia Solar Cities in Australia The Transition Decade Nuclear power Anti-nuclear movement in Australia Nuclear Fuel Cycle Royal Commission Nuclear power in Australia Uranium mining in Australia Agencies Australian Atomic Energy Commission Australian Energy Regulator Australian Energy Market Commission Australian Energy Market Operator Australian Nuclear Science and Technology Organisation Australian Radiation Protection and Nuclear Safety Agency National Offshore Petroleum Safety Authority Department of Climate Change and Energy Efficiency Research Energy Policy Institute of Australia Garnaut Climate Change Review Photovoltaic engineering in Australia Other topics Contribution to global warming by Australia Adaptation to global warming in Australia Climate change in Australia Category:Energy in Australia Energy Renewable energy Environment