Phase-out of greenhouse intensive hot water heaters
What is the phase-out and why is it happening?
Standard electric hot water heaters are used by about half of Australia's eight million households. They produce up to three times the greenhouse gas emissions of low emission technologies such as gas, solar and heat pump systems.
As energy prices continue to rise and put added pressure onto the lives of Australians, it is growing more important to seize opportunities to reduce energy consumption. Electric water heaters account for about a quarter of household energy use, as well as the same in greenhouse gas emissions. By changing your electric water heater for a low emission gas, heat pump or solar system, you can reduce your energy consumption, cut your greenhouse gas emissions and save money on your power bills.
The Australian Government has been working with the state and territory governments to phase out greenhouse intensive hot water systems. An extensive research and cost benefit process has shown that by installing a low emission water heater, households will save energy, reduce greenhouse gas emissions and be financially better off over the life of the system.
In December 2010, all states and territories except Tasmania agreed to phase out greenhouse intensive (electric) hot water systems. This phase-out will result in the reduction of greenhouse gases by about 51.1 million tonnes over ten years – the equivalent of taking 1.4 million cars off the road for the same period.
This single measure undertaken by Australian households will deliver four percent of Australia's current projected greenhouse gas abatement by 2020; a significant contribution to reducing our greenhouse gas emissions.
When will the phase-out occur?
The phase-out has already begun, with restrictions in place on the installation of greenhouse intensive water heaters in new detached, terrace, row and town houses (Class 1 buildings under the Building Code of Australia 2010). These regulations apply in all jurisdictions except Tasmania, Victoria and the Northern Territory.
Existing houses will be regulated through changes to state and territory plumbing regulations, and commencement dates are dependent on individual jurisdictions’ decisions. Currently both South Australia and Queensland have commenced their program for existing houses – preventing the installation of greenhouse intensive systems based on metro/regional locations and areas that have access to reticulated (piped) natural gas respectively.
The phase-out is expected to extend to cover all Class 1 buildings across the country (except Tasmania), during 2012.
To find out when the phase out starts in your state or territory please use the following links:
You don't have to replace a working hot water heater
If you currently have a working electric storage hot water heater there is no need to replace it until it breaks down. Once you need to buy a new unit, you can choose between the low emission systems – gas (natural and LPG), solar and heat pump water heaters. Repairs to existing systems or replacements under warranty will still be allowed and spare parts will remain available.
Low emission choices
If you are building a new house or replacing an existing hot water heater, you can choose a low emission option to suit your home, climate and budget. 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. Choices include:
Fact sheets on different technologies and what to consider when choosing a new system are available.
Rebates and incentives are available
Incentives in the form of rebates and Small-scale Technology Certificates (STCs) - formerly known as renewable energy certificates or RECs - are available to assist households in the switch to low emission hot water heaters.
Rebates for low emission hot water heaters may also apply. For further information see: Rebates and assistance.
Industry support
To support an effective transition by industry and consumers to low emission domestic water heaters, a training package for industry has been developed. States and territories are responsible for implementation. Online training material is available.
Next stages
Research is being undertaken into the feasibility of extending the program to cover new Class 2 buildings (apartments, flats and high rises) from 2013.
You can contact us if you would like any further information on the expansion of the program to Class 2 buildings. Our general enquiries line is 1800 057 590.