Appliances & equipment

Phase-out of greenhouse intensive hot water systems

Department of the Environment, Water, Heritage and the Arts, 2010

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Why phase-out greenhouse intensive hot water systems?

A greenhouse intensive (electric) hot water system, in a typical Australian home, produces around four tonnes of greenhouse gases each year. That’s two-and-a-half times more greenhouse gases than other more efficient technologies and the equivalent of running an average-sized car for a year.

Switching to low emission technologies such as solar, heat pump and gas will save about 30 million tonnes of greenhouse gas emissions over ten years. This is the equivalent of taking more than 750,000 cars off the road for ten years.

How will the phase-out work?

The phase-out will be implemented in two stages:

Stage 1

Commencing during 2010, the phase-out of greenhouse intensive electric hot water systems will be implemented on a state-by-state basis for new and existing homes where such requirements do not currently exist. For installations in new homes, requirements are specified in the Building Code of Australia and are to be regulated through state and territory building regulations. Installations in existing homes will be regulated through state and territory plumbing regulations.

Programs for new homes are already in place in Queensland, Victoria, South Australia, Western Australia and New South Wales.

Programs are in place for existing homes in South Australia and Queensland.

For more information about these programs go to:

Information about programs in other states and territories will be available soon

Stage 2

During 2012, the phase-out will be extended so that greenhouse intensive electric hot water systems will no longer be able to be installed in:

The phase-out will apply in all states and territories except Tasmania.

You don’t have to replace a working hot water system

You will only have to purchase a low emission hot water system when your current system breaks down or needs to be replaced.

Requirements for replacing your electric hot water system and timeframes for the phase-out are different in each state and territory. Please check with your state or territory government to find out how this affects you.

Low emission choices

If you are building a new house or replacing an existing hot water system, you can choose the low emission option that suits your home, climate and budget. Choices include heat pump, gas or solar (electric or gas boosted).

If you have access to piped natural gas, you aren’t limited to installing a gas hot water system; choose the option that best suits your needs.

Rebates are available

The Australian Government is currently offering a rebate of $1000 for eligible households to install solar hot water or $600 to install heat pump systems. Go to www.LivingGreener.gov.au to find out more.

Additional rebates may be available from your state, territory or local government.

You can save money on your power bills

A low emission hot water system can save hundreds of dollars on your household electricity bills each year, depending on the system you install, how much hot water your household uses, how much you pay per unit of electricity or gas (tariff) and where you live.

More information is available

Hot Water Systems Fact Sheet

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