Please note that the Federal Government recently announced a new Australia-wide Solar Hot Water Rebate Program which offers up to $1000 rebate for eligible installations. Interested parties should consult the Australian Greenhouse Office (AGO) website for details of the scheme.
Please note that this new AGO Rebate Scheme has a number of different criteria to the current SA Government Solar Hot Water rebate scheme, and requires a separate application. It is possible that applicants may be eligible for rebates under both schemes.
The heating of water in South Australian homes accounts for 35% of household energy use. Whilst natural gas accounts for the largest share of water heating energy consumption, electricity contributes approximately 72% of greenhouse gas emissions related to hot water heating. South Australians can reduce the amount of energy used and greenhouse gas emissions significantly by using a more efficient water heater. By incorporating solar with the heater, greater efficiencies are obtained.
The South Australian Solar Hot Water Rebate Scheme could reduce the cost of purchasing and installing a solar hot water system for your home.
The Rebate Scheme
The scheme provides for rebates up to $700 on the cost of a new solar hot water system purchased and installed in South Australia that complies with the program's guidelines.
The prime objective of the State Government's Solar Hot Water Rebate Scheme is to increase the efficient use of energy and reduce the amount of greenhouse gas emissions produced in the residential sector through water heating. With this in mind a number of eligibility criteria have been developed so that the program contributes effectively to meeting this objective.
The criteria have been set to encourage the replacement of electric water heaters with solar hot water heaters. In general, a gas hot water heater will emit approximately 70 per cent less carbon dioxide than a standard off-peak electric system and a similar level of emissions to an electric boosted solar hot water system. Therefore the scheme does not provide a rebate where gas hot water heaters are replaced by electric boosted solar systems. Also, replacing an existing solar hot water system does not generate any further carbon dioxide savings, therefore a rebate will not be available for installations that replace an existing solar hot water system.
Who is eligible for a rebate?
South Australian residents who purchase a new solar hot water system or retrofit kit for domestic purposes and install it at their principal place of residence (on or after May 28 2001) are eligible for a rebate if their system fits into any of the following categories:
- a solar hot water system that replaces the use of an electric hot water system
- a gas boosted solar hot water system that replaces a gas hot water system*
- a solar hot water system that is installed on a new home that does not have access to reticulated gas
- a gas boosted solar hot water system that is installed on a new home that does have access to reticulated gas
- a solar boosted heat pump system** that replaces the use of an electric hot water system
- where a solar retro-fit kit or pre-heating system is attached to an existing water heater, if the existing hot water system is covered by warranty for at least another three years.***
Systems are not eligible for a rebate where:
- an electric boosted solar hot water system or heat pump** replaces an existing gas* system
- an electric boosted solar hot water system or heat pump** is installed in a new home that has access to reticulated gas.
Additionally, rebates will not apply to solar hot water systems installed:
- at rental properties, commercial, industrial, or business locations, public housing, co-operatives and holiday homes.
- for purposes such as heating a swimming pool etc.
- to replace any existing solar hot water system or components, heat pump system or components, retro-fit kit or pre-heating system.
Rebates will be restricted to one per residence.
Please note that any persons who have, or are going to receive funding towards a solar hot water heater through the NRG Flinders Scheme are not eligible to receive a rebate through Energy Division's Solar Hot Water Rebate Scheme.
All systems must be installed by a qualified electrician/plumber and must have a warranty of 5 years or more on all parts, including frost protection in areas that are known to be prone to frost, if they are to attract a rebate.
*Note: Gas includes bottled gas and reticulated gas.
**Note: For the purpose of the scheme a solar boosted heat pump system is deemed to be equivalent to a nominal two-panel solar hot water system. Eligible customers can receive a rebate of $700 on the cost of a new solar boosted heat pump system. Solar boosted heat pump systems rebated under the scheme must be certified by the manufacturer as satisfying one or more of the standards outlined in the Equipment Standards section.
***Note: Any solar retro-fit kit or pre-heating system attached to an existing gas hot water system will only be eligible for a rebate provided that an electric element is not fitted.
Value of the Rebate
The following levels of rebate are available for systems that meet the above criteria:
- $700 for a new system with a panel collector area of 3.5 square metres or greater (nominal two panel system)****
- $500 for a new solar hot water system with a panel collector area of 1.75 square metres up to 3.49 square metres (nominal one panel system)*****
- $700 for a heat pump system**
- $500 for any solar retro-fit kit or pre-heating system.
**Note: For the purpose of the scheme a solar boosted heat pump system is deemed to be equivalent to a nominal two-panel solar hot water system. Eligible customers can receive a rebate of $700 on the cost of a new solar boosted heat pump system. Solar boosted heat pump systems rebated under the scheme must be certified by the manufacturer as satisfying one or more of the standards outlined in the Equipment Standards section.
****Note: Some solar hot water systems with panel sizes of less than 3.5 square metres, which have been certified by the Office of the Renewable Energy Regulator as achieving the same heating output as the standard 3.5 square metre panel, might also qualify for the $700 rebate.
*****Note: Some solar hot water systems with panel sizes of less than 1.75 square metres, which have been certified as achieving the same heating output as the standard 1.75 square metre panel, might also qualify for the $500 rebate.
Equipment Standards
All solar hot water systems and retrofit kits rebated under the Scheme must be certified by the manufacturer as satisfying one or more of the following standards:
- AS 2712
- Watermark; or
- Manufactured in accordance with AS/NZS ISO 9001.
All systems must be installed by a qualified electrician/plumber and must have a warranty of 5 years or more on all parts, including frost protection in areas that are known to be prone to frost, if they are to attract a rebate.
Note: This scheme will not require the applicant to assign the rights to create Renewable Energy Certificates (RECs) to the State Government. This enables applicants to apply for additional rebates from retailers/manufacturers who are willing to purchase the rights to RECs without effecting their rebate from the State Government.
How do I apply for the rebate?
Once the Solar Hot Water System has been installed, the owner will need to fill in a Rebate Application Form with relevant information about the system and its installation. When completed, the Rebate Application Form must be returned to Energy Division for review.
Under this system the applicant would need to pay the full cost of the system plus installation initially. They would then apply for a rebate from the State Government after installation. If the information about the installed solar system satisfies the required criteria, a cheque for the amount of the rebate will be sent out to the applicant.
However alternative arrangements may be made whereby a particular party, eg a manufacturer, may wish to offer a single point of sale service, by providing a sale/installation package. This would mean the cost of a system and installation could be reduced by the size of the rebate at the point of sale. The rebate would then be paid to the installer on behalf of the applicant.
Energy Division strongly suggests intending applicants contact Energy Division with any queries relating to the Solar Hot Water Rebate Scheme prior to the purchase of the solar hot water system and prior to returning the completed application form.
Energy Division reserves the right to refuse any application if the information provided is incomplete or does not meet the required criteria.
Please allow 4-6 weeks for processing and delivery of the rebate.
For further advice and information please contact the Energy Division Advisory Service on (08) 8204 1888 or Freecall 1800 671 907 (Country Callers only) or email us at
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Further Information
The Solar Hot Water Heater Rebate Scheme will extend to at least 2007/08.
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