Solar hot water in Australia


Solar hot water is water heated using only energy from the Sun. Solar energy heats up large panels called thermal collectors commonly known as solar panels. The energy is transferred through a fluid 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 and carbon 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.
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.
During the 1950s, Australia’s Commonwealth Scientific and Industrial Research Organisation carried out world leading research into flat plate solar water heaters. 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. The Australian government estimates that installing a climate friendly solar powered hot water system can save a family $300 to $700 off electricity bills each year.

Australian government's solar hot water rebate program

The solar hot water rebate program for financial year 2009 offered a $1600 rebate for the installation of solar powered hot water systems.
The rebate can be collected once the installation has been finished, if the household meets the necessary requirements stated below.
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 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 one resides. Each zone is associated with a number of post codes ranging across the whole continent.
Once issued, the RECs can be sold to energy retailers. While the market value of RECs is subject to variation even residential sized installations, depending on the current market conditions and the performance of the installed unit, often amounts to payments of a $900 or more.

Solar hot water in the Australian states

ACT

The ACT Energy Wise program, The Act energy wise program 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 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.
In addition, to be eligible the rebate of $500 the householder/tenant must:
The NSW Residential rebate program, 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, the more RECs the system was eligible for, generating a higher rebate.
Solar or heat pump hot water system, eligible for:Rebate in $
20-27 RECs600
28-35 RECs800
36-43 RECs1000
44< RECs1200
5-star< gas hot water system300

Northern Territory

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

Queensland

The Queensland Government's solar hot water rebate scheme finished on 30 June 2005.
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. From 2010, Queenslanders who needed to replace their household hot water system due to breakdown were no longer able to install electric systems and instead had 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 1 January 2013 and currently Queenslanders are permitted to install electric hot water systems.
The Brisbane City Council offered a rebate of $400 from 30 August 2008 to 1 June 2009.

South Australia

In accordance with the South Australian Government rebate scheme, starting 2008-07-01, anyone who is installing or replacing a water heater must install a low-greenhouse one. 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 rebate, the householder has to hold at least one of the following concession cards:
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:
New systemNo natural or LPG gas accessGas access
Gas solarYesYes
Electric solar or heat pumpYesNo
Electric or gas storage/instantaneousNoNo

The water heating system does replace existing one:
New systemGasSolar gasElectric element/solar, heat pumpOther types
Gas solarYesYesYesYes
Electric solar or heat pumpNoNoYesYes
Electric or gas storage/instantaneousNoNoNoNo

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, sponsored by the Victorian government, offers rebates to householders who have installed a system abides that the following criteria:
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:
Installation situationVIC gov rebate $480–1500Commonwealth Gov rebate $1000RECs eligible
Replacing natural gas or LPG WH w/ gas-boosted solar systemYesNoYes
Installing SWH as preheater to an existing natural gas or LPG WHYesNoNo
Adding solar panels to an existing off-peak electric WH either with a pump or by thermosiphon as a retrofit kitYesNoNo
Replacing a wood or briquette WH w/ gas-boosted or electric solar systemYesNoYes
Replacing an electric WH w/ gas-boosted or electric solar systemNoYesYes
New homes and buildings installing a gas-boosted or electric solar systemNoNoYes
Existing buildings requiring a custom designed system for a large hot water loadYesNoNo

Commercial buildings:
Installation situationVIC gov rebate $480–1500Commonwealth Gov rebate $1000RECs eligible
New or existing building installing SHWNoNoYes

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.
SystemRebate in $
Natural gas-boosted solar water heaters500
Bottled LP gas-boosted solar water heaters used in areas without reticulated gas700