The Electric Phase Out

Hot water heating accounts for approximately 25 per cent of the energy used in Australian homes. According to the Australian Government, electric water heaters are the second largest consumer of energy in Australian homes, generating up to three times more greenhouse gases than low emission alternatives.

For Australian plumbers selling and installing hot water systems, the electric hot water system phase-out offers an opportunity to capitalise on the greening market. So staying up to date with hot water regulations, rebates and system knowledge is essential.

The Phase-Out

The Commonwealth, state and territory governments (excluding Tasmania) are working to phase out greenhouse-intensive electric hot water systems, and phase in alternatives including gas, solar (including gas or electric boosted) and heat pump systems.

The phase-out of electric systems will be implemented through regulations within the 2011 Building Code of Australia for new buildings, and through regulations within state plumbing codes for existing buildings replacing failed systems.

Initial stages of the phase-out will regulate against the installation of electric water heaters in detached, terraced and town houses (Class 1 buildings), except where exemptions apply, on a state-by-state basis.

Queensland and South Australia have already commenced their phase out programs and other states are developing similar regulation. The phase-out will extend to all Class 1 buildings nationally from early 2012.

Flats and high-rise buildings, or Class 2 buildings, are not currently included in the phase-out. However, it is expected new constructions with access to piped natural gas will be included from 2013, and that the phase-out of those new Class 2 buildings without access to natural gas commence between 2013 and 2015.

Choosing The Best System

Different hot water systems have different benefits and will vary in suitability for clients and sites depending on a number of factors. These include: local climate; building size; the lowest cost energy sources available; installation, running and maintenance costs; homeowner preference for one system or energy source over another; budget restraints; and government financial incentives, among other factors.