Replacement of electric hot water systems with greenhouse-efficient systems

On 3 June 2007, the Premier announced Queensland’s Climate Change Strategy—ClimateSmart 2050. The strategy contains a range of initiatives, including a proposal to phase-out electric hot water systems in Queensland from 2010 in existing houses and townhouses (class 1 buildings only). This initiative is the first of its kind in Australia and follows action by the Queensland Government to ban installation of electric hot water systems in all new houses and townhouses (class 1 buildings only) which came into effect on 1 March 2006.

The phase-out will not apply to existing multi-unit residential apartments (class 2 buildings).

Phase-out of electric hot water systems

The strategy identifies 2010 as the year for the phase-out to commence, allowing sufficient time for:

• industry to prepare for the increased demand for greenhouse-efficient hot water systems (solar, gas or heat pump)
• hot water installers to undertake installation training.

The phase-out will be implemented in two stages. The first stage will commence 1 January 2010 in natural gas reticulated areas and will require existing houses to install a greenhouse-efficient hot water system when their existing system requires replacement.

A date has yet to be determined for the second stage, which will require houses located outside natural gas reticulated areas to install a greenhouse-efficient hot water system when their existing system requires replacement. For households not within a natural gas reticulated area, switching to a greenhouse-efficient system is initially voluntary.

Householders will not be forced to get rid of their existing electric hot water systems that are in good working order.

Register your interest in the Solar Hot Water Program

If you are interested in participating in the program, please register online with the Office of Clean Energy or by calling 1800 243 585.

Why electric hot water systems are being phased out in existing homes

The average Queensland household uses 35% of its energy to heat water. Using non-electric systems for water heating is an effective means of reducing greenhouse gas emissions.

Available rebates

Gas hot water systems

A rebate is available from the Department of Mines and Energy. This rebate is $300 for a minimum 5-star rated system (and a $200 rebate is also available if installing other household gas items, such as stoves, ovens, space heating and clothes dryers). It is not subject to household income means test and is available until 31 August 2009. More details on the Residential Gas Installation Rebate Scheme are available from the Department of Mines and Energy or by calling (07) 3247 3254.

Solar and heat pump hot water systems

The schemes listed below are available to householders replacing their existing electric hot water system with either a solar or heat pump system:

Renewable Energy Certificates (RECs)

A discount applies to solar and heat pump systems through Renewable Energy Certificates (RECs). The number of RECs for each system is determined by the Office of Renewable Energy. RECs are available at purchase and reduce the cost of the system. Currently, RECs are around $800 to $1200 for a typical size system (their price fluctuates due to their market trading). RECs are not subject to household income means testing. Further information on RECs is available from hot water system suppliers or the Office of Renewable Energy Regulator or by calling (02) 6274 2192.

Solar hot water rebate

As part of the federal government’s Energy Efficient Homes Package, a $1600 rebate is available for householder’s replacing their electric hot water system with either a solar or heat pump hot water system. The system must qualify for a minimum of 20 RECs. The rebate is not subject to household income means test and is available until June 2012. Further information on the solar hot water rebate is available from the Department of Water, Heritage and the Arts or by calling 1800 808 571.

Brisbane City Council solar water heater rebate program

A $400 rebate is available for householders in existing houses (and units) in Brisbane City to replace their electric (or gas) hot water system with a solar or heat pump system. The system must qualify for a minimum of 20 RECs. The rebate is not subject to household income means test and is available until 30 June 2012 (with funding allocated for the first 1500 applicants per financial year). Further information is available from council or by calling (07) 3403 8888.

Electric hot water system replacement regulation

The Queensland Plumbing and Wastewater Code ( 252 KB) has been amended to prevent hot water installers from installing electric hot water systems as replacement systems in natural gas reticulated areas from 1 January 2010.

Will the electric hot water system replacement requirement apply statewide?

Yes. The phase-out requirement will apply to all natural gas reticulated areas in Queensland.

Reticulated gas network

To find out if you are located in or near a natural gas reticulated area, contact the Natural Gas Hotline or on freecall 1800 007 427.

Further information

You can obtain more information about the phase-out of electric hot water systems by contacting Building Codes Queensland or by calling (07) 3239 6369.