Switching to low emission hot water systems
The Australian, state and territory governments are now working together to phase out greenhouse intensive hot water systems, commencing during 2010. This phase out will result in the reduction of greenhouse gases by over 30 million tonnes over ten years from 2010-2020.
Each electric hot water system produces around four tonnes of greenhouse gases each year. That's at least 2.5 times the greenhouse gases produced by other more efficient technologies and equivalent to running an average sized car for a year.
To help the 50 per cent of Australian households using electric hot water systems to reduce their energy bills and Australia's greenhouse emissions, the Australian Government has committed to:
- working with state and territory governments to phase out greenhouse intensive hot water systems, commencing in 2010; and
- offering a rebate of up to $1,600 for eligible households to install solar hot water or heat pump systems.
- Fact sheet - Phase out of greenhouse intensive hot water systems
Frequently asked questions
- What is a greenhouse intensive hot water system?
- What are the low emission hot water system alternatives?
- What support is available to me if I switch to a low emissions hot water system?
- How will the government phase out greenhouse intensive hot water systems?
- Will there be any exemptions to the phase out?
- Who will the program apply to?
- Do I have to replace my hot water system immediately?
- If I have access to piped natural gas, am I limited to installing a gas hot water system?
- Are there big greenhouse gas savings to be made?
- Will I save money on my energy bills?
- How should I dispose of my old hot water system?
- When will more information be available?
- How can I reduce my energy bills further?
What is a greenhouse intensive hot water system?
Electric hot water systems produce three times the greenhouse gas emissions of other more efficient systems and with around 50 per cent of Australian households having electric hot water systems, there are large energy and greenhouse emission savings to be made.
What are the low emission hot water system alternatives?
Builders of new houses and households replacing an existing hot water system will be able to choose from a range of low emission alternatives to suit their home, climate and budget including:- heat pump,
- gas, and
- solar (electric or gas boosted)
What support is available to me if I switch to a low emissions hot water system?
Under the Energy Efficient Homes Package, the government is providing a rebate of $1,600 to eligible home-owners that have not already accessed the homeowner insulation program. Eligible households can replace existing electric hot water systems in existing homes with solar and heat pump hot water systems. You can also contact your state, territory or local government to find out if they offer a rebate.
How will the government phase out greenhouse intensive hot water systems?
The phase out will be implemented in two stages:
During 2010, electric hot water systems will no longer be able to be installed in:
- any new detached, terraced and town houses; and
- any existing detached, terraced and town houses where there is access to piped natural gas, except where an exemption applies.
During 2012, electric hot water systems will no longer be able to be installed in:
- any existing detached, terraced and town houses; and
- any new flats and apartments with access to piped gas except where an exemption applies.
Will there be any exemptions to the phase out?
Exemptions to the program are yet to be finalised and are still under investigation. These decisions will be based on identifying situations where appropriate alternative technologies are not yet available or where there are significant additional costs.
Who will the program apply to?
The phase out will apply in all states and territories except where the emissions intensity of the public electricity supply is low (Tasmania).
Do I have to replace my hot water system immediately?
No, there will be no requirement to replace a working electric storage hot water system. You will only have to purchase a low emission hot water system when your current unit breaks down or is replaced.
If I have access to piped natural gas, am I limited to installing a gas hot water system?
No, you are free to choose the low emission alternative that best suits your home, your climate and your budget.
Are there big greenhouse gas savings to be made?
Yes. Hot water systems account for around 23 per cent of greenhouse gas emissions from the average home. By phasing out the most inefficient systems, this program will save over 30 million tonnes of greenhouse gas emissions over ten years. This is the equivalent of taking more than 750,000 cars off the road every year for ten years.
Will I save money on my energy bills?
Yes, depending on the technology you install. A low emission hot water system, could save a family up to $700 off electricity bills each year. The more efficient the system, the greater the savings.
How should I dispose of my old hot water system?
Much of the old hot water systems can be recycled as scrap metal. Ask your installer how they dispose of old systems.
When will more information be available?
Detailed design of the phase out is currently underway and more information will be available throughout 2009.
How can I reduce my energy bills further?
Hot water systems represent 23 per cent of household greenhouse gas emissions so that's a great start. The Australian Government also offers a range of other incentives and rebates which will help.
Find out more about our rebates and incentives at www.environment.gov.au/rebates
Search and compare appliances at www.energyrating.gov.au
Read our guide to home improvements at www.yourhome.gov.au
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