Solar Hot Water Rebates

In Victoria all solar hot water systems purchased attract a Federal Government rebate and/or State Government rebate. We can provide advice on your eligibility for solar hot water rebates and we look after the application and processing of rebates for our customers.

Renewable Energy Certificates (RECs)

The Mandatory Renewable Energy Target (MRET) supports the reduction of Australia's greenhouse gas emissions by increasing the proportion of Australia's electricity that is derived from renewable energy sources. This is achieved through an innovative market-based certificate trading scheme.

The commodity in this market is the Renewable Energy Certificate (REC) - each REC represents the equivalent of one megawatt hour of electricity generation from an accredited renewable energy source. For solar water heaters each REC represents the displacement of one megawatt hour of electricity generation by solar energy.

Owners of water heaters that use renewable energy may be able to create and sell RECs to help offset the cost of installing renewable energy technologies in the home. Under the MRET the following technologies may be eligible to create RECs:

• Solar water heaters; and
  
• Air-sourced heat pump water heaters.
  
  

Under the legislation the calculated REC values for each solar water heater or air-sourced heat pump system (SWH) are "deemed" to represent the number of megawatt hours displaced by the SWH over the life of the system.

Owners of these technologies often receive a benefit from RECs in the form of a product rebate or upfront discount from the full purchase price, from a Registered Agent.

The person who is entitled to create RECs for a SWH system is the owner of the system at the time it is installed. In some circumstances where SWHs are installed in new buildings, this can be the builder or property developer. Before you create RECs or assign your rights to create RECs you should, make sure you are the owner of the system at the time it was installed.

For additional information: www.orer.gov.au/solarwaterheaters

Australian Government Rebates

The Australian Government offers solar hot water rebates of $1,000 to replace an electric hot water system with a solar hot water unit in eligible homes. This is in addition to your entitlement to Renewable Energy Certificates (RECs).

For additional information:  www.environment.gov.au/solarhotwater

Sustainability Victoria - Victorian Solar Hot Water Rebates

This program provides solar hot water rebates for installations in households that:

• Replace a natural gas or LPG water heater with a gas-boosted solar system.
• Add solar to an existing natural gas or LPG water heater by installing a solar system as a preheater.
• Add solar to an existing electric water heater by installing a retrofit kit.
• Replace an existing solar, solid fuel or oil fired water heater with a solar system. Must be natural gas boosted if available in the street. Existing LPG boosted solar water heaters can only be replaced with gas boosted systems.
• Replacing an electric water heater with gas-boosted or electric-boosted solar system (if natural gas is not available in the street) where the applicant has installed ceiling insulation under the Australian Government's Homeowner Insulation Program.

The rebate is offered until 31 December 2010, subject to the availability of funds.

Rebates for complete solar hot water systems will vary depending on the size and performance of the system, relative installation costs, your location and other incentives available. Rebates for installations in regional Victoria range from $400 to $1,600. In metropolitan Melbourne the rebates range from $300 to $1,500.

An additional rebate of $200 is available for eligible households replacing an electric water heater where there is gas available in the street and this is the first connection to the property. The rebate takes the form of a point-of-sale discount on the supply and installation cost and is only available through participating suppliers.

For more information download:  Victorian Solar Hot Water Rebate Guidelines.pdf

Victorian Energy Efficiency Certificates (VEECs)

For additional information:  www.esc.vic.gov.au/public/veet