Water heating via a standard electric hot water system, is the largest single source of greenhouse gas emissions from the average Australian home. In an effort to reduce Australian greenhouse gas emissions the Australian government has put in place a number of generous rebates for consumers. These rebates provide significant financial incentives for purchasing sustainable hot water systems. Rebates are eligible to households when a solar or heat pump hot water system is installed replacing an existing electric hot water system.
A Renewable Energy Certificate represents the equivalent of one megawatt hour of electricity generation from an accredited renewable energy source. Every solar and heat pump water heater has been assigned a REC value based on how much non renewable energy you displace using a solar/heat pump hot water system. With the intent to increase the amount of electricity generated by renewable sources the federal government implemented this incentive. Each REC is assigned a monetary value. RECs are based on the efficiency of the system, simply meaning the more RECs the more efficient the system is deemed to be.
Get the current value of RECs and to learn more about visit www.orer.gov.au.
The Federal Rebate has recently changed on 19th February 2010 from $1600 to $1000. The new Renewable Energy Bonus Scheme has replaced the Home Installation Program and the Solar Hot Water Insulation Program. Both of these programs were discontinued on 19th February 2010. As of the 20th February 2010 a $1000 rebate is available for the installation of solar or heat pump hot water systems when replacing an existing electric system. This rebate is not applicable for new homes. This incentive is available to eligible homes up until 2012.
To learn more about Federal Government Rebate and download your application form visit www.environment.gov.au/energyefficiency/solarhotwater.