Hot Water Rebates
Hot water rebates vary depending on where you are located and the type of unit you are installing. Many products don’t attract rebates at all, but solar and heat pumps, and some gas storage units attract various forms of rebates.
Broadly, there are three types: Renewable Energy Certificates (RECs), Federal government rebates and state government rebates.
Renewable Energy Certificates (RECs)
Renewable Energy Certificates or RECs have been introduced by the Federal Government to encourage the use of renewable energies and to ensure compliance with the mandatory renewable energy target. The number of RECs issued depends on the product being installed and the region of Australia in which the installation is made. The number is an estimate of the expected electricity saving over ten years.
One (1) REC = 1 MWh (megawatt hour) of electricity generated from a renewable energy source or 1 MWh of electricity displaced by a solar water heater. 1 MWh = 1,000 kilowatt hours.
RECs have a market value which varies like any other market price and can be sold, mostly to large energy consumers such as power generating authorities who need to meet specific targets for reduction of their emissions.
Solar and heat pump RECs are restricted to:
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New home installations
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Replacements for electric water heaters
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Buildings without water heaters
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If you own more than one eligible Solar or Heat Pump installation, you are entitled to create RECs for each of those eligible installations.
Other small generation unit installations that are eligible for RECs include photovoltaic, wind and small hydro-electric systems.
Redeeming
Owners of eligible solar water heater installations have the option to claim RECs themselves by completing the appropriate application forms or assign their right to claim RECs to an agent.The Office of the Renewable Energy Regulator has a list of agents that trade in solar water heater RECs. Southern Plumbing Plus currently recommends Greenbank Environmental to redeem the RECs.
The Redeeming Process
The installer or customer completes all fields on the form including current system model numbers & correct serial numbers.
Document must be signed by the owner of the solar power or solar water heating system.
Attach a copy of proof of purchase which can be a warranty certificate, installation invoice, purchase invoice etc.
Post, fax or email the Greenbank Environmental form along with copy of proof of purchase and within 14-21 days of receipt, payment will be made directly into your bank account.
Climate Zone Map to calculate RECs.
Australia has been divided into four zones for solar water heater installations. These zones represent the different number of sunlight hours in different regions of Australia. The Zone map illustrates the four zones used for the determination of the number of RECs which can be created for an eligible solar water heater installation.
Federal Government Rebate
A rebate is available to owner-occupiers, landlords or tenants who are replacing electric storage hot water with solar or heat pump systems. The rebate is not means tested.
From 5th September 2009, the federal government rebate for heat pumps was reduced to $1000. The rebate for solar systems remains at $1600.
This rebate is only available to people who have not already accessed support to install ceiling insulation through the Homeowner Insulation Program. Eligibility also requires that a solar or heat pump system must:
replace an electric storage
hot water systembe purchased and installed
after 3 February 2009be eligible for at least 20 RECs
be installed by a qualified plumber.
State Government Rebates
Most State Governments have additional rebates available to people replacing electric storage hot water with solar or heat pumps.
For example, in NSW:
No. of RECs |
Current Rebate |
20 - 27 |
$600 |
28 - 35 |
$800 |
36 - 43 |
$1000 |
44 + |
$1200 |
