Around 27% of electricity used in the average Queensland household is for heating water, making hot water systems one of the highest single energy users and greenhouse gas contributors in the home.

Replacing an electric hot water system with a greenhouse efficient system is one of the most effective ways to save money on your energy bill. Most greenhouse efficient hot water systems generally have lower running costs than standard electric systems.

From 1 January 2010, existing houses and townhouses (class 1 buildings) located in a natural gas reticulated area must install a greenhouse efficient hot water system (i.e. gas, solar or heat pump) when the existing electric resistive system needs replacing. Householders will not need to replace their existing electric resistive hot water systems that are in good working order.

This initiative, part of Queensland’s Climate Change Strategy, is the first of its kind in Australia and follows action by the Queensland Government to ban installation of electric resistive hot water systems in all new houses and townhouses (class 1 buildings only) which came into effect on 1 March 2006.

Natural gas reticulated area

This is an area where a gas distributor can supply gas to the meter of the property at no cost. The property owner will still be responsible for the internal connection costs from the gas meter outlet to the hot water system.

You can find out if your property is within a natural gas reticulated area by contacting the Natural Gas Connection hotline on 1800 007 427.

At this stage, owners of homes located outside these areas will still be able to replace their existing hot water system with another electric system or voluntarily upgrade to a greenhouse efficient system.

Rebates are available for some hot water systems depend on your circumstances.

Electric hot water system replacement regulation

The Queensland Plumbing and Wastewater Code  ( 252 KB) prevents hot water installers from installing electric hot water systems as replacement systems in existing houses and townhouses located within a natural gas reticulated area from 1 January 2010.

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.