Frequently asked questions
Phase-out of greenhouse intensive hot water systems
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What is a greenhouse intensive hot water heater?
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Who made the decision to phase out greenhouse intensive (electric) hot water systems?
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What process was undertaken to reach the decision?
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Why isn't there more information available on dates and exact details of the phase-out?
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What are the relevant state and territory departments to contact for more information?
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How long do I have before I can't buy an electric system any longer?
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I've only recently replaced my electric system – I won't have to buy a new system immediately will I?
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What my electric system can be repaired and doesn't need replacing?
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When will the phase-out start?
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What are low emission hot water systems?
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Is the phase-out going to apply to people who live in apartment buildings?
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When will the phase-out apply to apartments and flats?
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What if I can't afford a more expensive hot water system?
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How do I know what system will be the cheapest for me to run?
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How can I reduce my energy bills further?
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How do I choose the best water heater for me?
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What is the most greenhouse friendly hot water system?
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My house doesn't have access to natural gas, what can I choose?
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Will I have to go without hot water while I'm waiting for a new system to be installed?
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Who is able to install my new system?
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My off-peak water system is cheap to run and doesn't use much energy. Why am I being forced to pay for a more expensive system that will use more electricity?
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Why are off-peak electric systems being phased out too?
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Can I run a heat pump or solar system on off-peak power so I can continue using a cheaper tariff?
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How will I know what electricity tariff will be appropriate for my new system?
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How should I dispose of my old hot water system?
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What is a Class 1 building?
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What is a Class 2 building?
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What is greenhouse intensity?
1. What is a greenhouse intensive hot water heater?
Hot water heaters that produce more than 100 grams of carbon dioxide equivalent per mega joule of energy delivered are considered greenhouse intensive.
Electric resistance hot water heaters are considered greenhouse intensive as they produce approximately 270 grams of CO2-e/mJ energy delivered.
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2. Who made the decision to phase out greenhouse intensive (electric) hot water systems?
The phase-out was agreed to by the Coalition of Australian Governments – comprising state premiers, territory chief ministers, the president of the Australian Local Government Association and the Prime Minister.
The phase-out was supported under the National Framework on Energy Efficiency in 2008 and again under the National Strategy on Energy Efficiency in 2009. Agreement was reached in December 2010.
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3. What process was undertaken to reach the decision?
The phase-out was agreed to after a long research and cost-benefit analysis process, including considerable consultation with industry and the public.
See: Decision Regulatory Impact Statement.
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4. Why isn't there more information available on dates and exact details of the phase-out?
As each state and territory have responsibility for their own programs, they will have the most up to date information. The Commonwealth government is unable to advise of this level of detail until the states and territories have made their decisions.
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5. What are the relevant state and territory departments to contact for more information?
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Australian Capital Territory: ACT Environment and Sustainable Development Directorate - 13 22 81
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New South Wales: Office of Environment and Heritage - 1300 361 967
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Northern Territory: Chief Minister's Department - (08) 8999 5511 or 1800 244 763
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Queensland: Department of Local Government and Planning - (07) 3239 6369 or free call 1800 534 972
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South Australia: Department for Transport, Energy and Infrastructure - (08) 8204 1888
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Victoria: Plumbing Industry Commission/Sustainability Victoria - 1300 363 744
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Western Australia: Office of Energy - (08) 9420 5600
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6. How long do I have before I can't buy an electric water heater any longer?
Each of the participating states and territories are responsible for planning and implementing their own programs. You can contact your local authority for more information on when the phase-out will impact you.
All jurisdictions except Tasmania and the Northern Territory have adopted the 2010 edition of the Building Code of Australia, which prevents the installation of a greenhouse intensive hot water system in any new Class 1 buildings (that is detached, terraced and town houses).
Currently Queensland and South Australia also have restrictions on installations in existing houses located in certain areas (reticulated gas access/metro areas).
The phase-out is regulating against the installation of greenhouse intensive hot water systems. Electric systems will remain for sale as they will still be able to be used in flats and apartment buildings, as well as in Tasmania.
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7. I've only recently replaced my electric system – I won't have to buy a new water heater immediately will I?
No, the phase-out is only regulating against the installation of new greenhouse intensive (electric) units. Only once your existing water heater breaks down and needs to be replaced will you need to select a new type.
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8. What if my electric hot water heater can be repaired and doesn't need replacing?
Repairs to existing electric systems are permitted under the phase-out, which is regulating against the installation of greenhouse intensive systems.
You will need to purchase a low emission system only when you need to replace your old electric water heater.
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9. When will the phase-out start?
Currently, new Class 1 buildings across the country must have a low emission water heater installed. South Australia and Queensland have restrictions in place for replacement installations in existing houses; based on metro/regional areas (SA) and natural gas reticulation (Qld).
Full implementation is planned during 2012. Each state and territory is responsible for the implementation and administration of their own programs. For exact details for your local area you should contact your state or territory government.
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10. What are low emission hot water heaters?
Low emission water heaters produce fewer greenhouse gas emissions and use less energy while providing a reliable source of hot water. They include:
- heat pump
- gas (natural and LPG), and
- solar (electric or gas (natural or LPG) boosted)
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11. Is the phase-out going to apply to people who live in apartment buildings?
Currently the phase-out has only been agreed to for Class 1 buildings – detached, terraced, row and town houses. Research is underway to determine the viability of extending the phase-out to cover Class 2 buildings – that is apartments, high rises and flats. This is unlikely to occur before 2013.
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12. When will the phase-out apply to apartments and flats?
Initial research into the viability of extending the phase-out to cover flats and apartments (Class 2 buildings) is currently underway. The earliest it is likely to extend to new buildings is from 2013, with existing buildings not expected to be affected until 2018-2020. The research is examining the costs and benefits as well as the viability of alternative technologies in types of buildings.
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13. What if I can't afford a more expensive hot water heater?
Natural gas and LPG hot water heaters are affordable low emission heaters, with similar capital costs to electric systems. Some states also currently offer rebates to replace existing electric systems with gas, so this can help reduce the purchase price. Check with your state or installer to see what rebates are available.
To find out what rebates are available for solar and heat pump hot water heaters, refer to: Rebates and assistance.
The Office of the Renewable Energy Regulator also offers Small-scale Technology Certificates (STCs) for eligible solar and heat pump units. These can be offered as an immediate discount from your retailer off the purchase price of the unit, or you can alternatively choose to retain them and sell them yourself.
After taking rebates and STCs into account, the cost of installing a solar or heat pump water heater can be comparable to the cost of replacing an electric storage water heater. In some cases, such as where state rebates are not available and water heaters are only eligible for limited STCs, the out-of-pocket costs may be higher but the low operating costs should result in net savings over time.
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14. How do I know what system will be the cheapest for me to run?
The efficiency of any unit will depend on a large number of factors so it's best to do plenty of research – including checking product reviews on websites and talking to several different retailers and suppliers before making any decisions.
While the majority of the water produced from a solar or heat pump system should be from the sun or warmth from the air respectively, you will also have to account for any boosting that may be required when the hot water supply is insufficient.
A solar hot water system can provide up to 90% of your required hot water, depending on where you live. Have a chat with your supplier to get an idea of the solar gain you can expect in your climate.
Heat pumps work best in warm climates as they can gain more warmth from the air to transfer in to the water. Once temperatures get lower, it becomes more difficult for the heat pump to extract warmth from the air, so they will need to work for longer to produce the same amount of hot water.
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15. How can I reduce my energy bills further?
Hot water systems represent about a quarter of household energy use so by choosing a new water heater you're making a great start. Living Greener offers fantastic, practical tips for things you can do around the home to reduce your energy usage and lower your bills.
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16. How do I choose the best water heater for me?
Have a look at our checklist for hints of what to think about.
The main issues you should consider are:
- Where the heater can be installed
- The price of the heater (as well as installation, maintenance and running costs)
- The rebates and other purchase cost assistance applicable to the heater type and to your area
- The energy source of the heater (gas – natural or LPG, or electricity – for heat pumps and solar systems with an electric boost)
- Specific issues that require consideration with different heater types – your climate, access to direct sun, shading, layout of your house, etc
As with any large purchase, it's a good idea to do your own research first and also to discuss your options with a number of suppliers or installers so they can advise on the heaters that may be appropriate for you.
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17. What is the most greenhouse friendly hot water heater?
A solar hot water heater with an instantaneous gas boost is the least greenhouse intensive hot water heater you can install. On average it will produce 0.4 tonnes of greenhouse gas emissions per year, compared to as much as 4.2 tonnes a year for an electric storage water heater.
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18. My house doesn't have access to natural gas, what can I choose?
Even without access to natural gas, you still have plenty of options for a new low emission water heater. You can choose between a heat pump, an electric boosted solar, an LPG boosted solar and an LPG system.
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19. Will I have to go without hot water while I'm waiting for a new system to be installed?
No. Many installers have small temporary electric water heaters that you can use while you're waiting for the new system to be installed.
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20. Who is able to install my new water heater?
Make sure you choose an installer who has appropriate qualifications and experience in installing the type of hot water heater you have chosen. Remember that if you are installing any system that has an electric component (ie heat pumps or solar systems with an electric boost), installation will require the services of a licensed electrician as well as a licensed plumber. If you are installing a gas system then the plumber must be licensed to connect and work with natural gas and/or LPG.
It's a good idea to check with your state or territory authority if you're unsure, or would like to confirm the requirements for your local area.
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21. My off-peak water system is cheap to run and doesn't use much energy. Why am I being forced to pay for a more expensive system that will use more electricity?
All electric storage systems will use the same amount of energy regardless of the electricity tariff they operate on. Off-peak systems are cheap to run not because they use less energy, but because off-peak power is cheaper than day rate.
In fact, many off-peak systems are actually less efficient than day-rate because they tend to be sized larger than required to allow for the fact that they can only reheat overnight.
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22. Why are off-peak electric systems being phased out too?
Off-peak electric systems use as much energy and produce as many greenhouse gas emissions as day rate water heaters.
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23. Can I run a heat pump or solar system on off-peak power so I can continue using a cheaper tariff?
Many models of solar are suitable to run on off-peak power. However, you should be aware that if you don't use a lot of water in the mornings, operating your boost on off-peak can mean you have a full hot tank in the morning, leaving your solar collectors less able to make use of the sun's contribution during the day.
Some heat pumps may also be suitable to run on off-peak power but you should talk to your supplier before you decide on a model. If you live in a climate with cold overnight temperatures be aware that the heat pump will have to work a lot harder to heat your water than during the day when temperatures are warmer.
In either case you should research your options and speak with suppliers before you make any final decisions.
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24. How will I know what electricity tariff will be appropriate for my new system?
Make sure you discuss your tariff options with your installer before the installation of your new unit to ensure you have a good understanding of how different tariffs will affect both its running costs and performance.
Generally, be aware that some low-emission water heaters are less suitable for off-peak tariffs. The following water heaters are better suited to continuous/day rate electric supply:
- Instantaneous gas systems that require electricity to ignite the burner
- Solar systems with a circulation pump or some gas boosts that require electricity for burner ignition
- Some heat pumps – especially in colder climates where the pump will need to operate during the day
To gain a better understanding of your tariff options, you should talk to your electricity supplier.
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25. 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.
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26. What is a Class 1 building?
The Building Code of Australia defines a Class 1 building as a detached, row, terraced or town house or a hostel or boarding house with less than 12 residents.
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27. What is a Class 2 building?
The Building Code of Australia defines a Class 2 building as an apartment, flat or high rise building.
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28. What is greenhouse intensity?
Greenhouse intensity is the amount of greenhouse gas that is produced when an appliance is used.
The typical greenhouse gas intensity of electricity is about 270 grams of carbon dioxide equivalent per mega joule of energy delivered. Natural gas has a greenhouse intensity of approximately 60g CO2-e/mJ.
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