Most people would be interested to know how they can save thousands of dollars a year on their utility bills. Yet the answer is simple — by upgrading one of a home’s biggest users of energy to a more efficient system.
The good news is our government is encouraging it by offering financial incentives to help with upfront costs for appliances such as hot water systems.
So, let’s take a look at how you can upgrade your hot water system and see savings on your energy bills straight away. But first, let’s delve into why becoming more energy-efficient is crucial if you live in Australia.
How greater energy efficiency helps the whole country
Becoming more energy efficient saves us money to run our appliances and moves us closer to our climate goals, but it also helps to improve the country’s energy security so that we can have an uninterrupted supply.
As the purchase price to upgrade appliances such as a hot water system to a more energy-efficient unit can be initially higher, governments at both the state and federal levels have stepped in to encourage this shift with financial incentives for households.
Federal government rebates for hot water systems
To help the country achieve our Renewable Energy Target, the federal government currently has a financial incentive called the Small-scale Renewable Energy Scheme. It aims to encourage the installation of small-scale renewable energy systems, such as heat pumps and solar systems. It does this by issuing Small Scale Technology Certificates (STCs).
Designed to encourage residential and small-business investment in renewable technology, the scheme issues a number of certificates for each system based on where it’s located, when it was installed and the amount of electricity it generates or displaces.
As STCs are like a form of currency, homeowners can claim and sell STCs themselves. However, many choose the simpler option of giving a registered agent (the retailer) the right to trade STCs in return for a lower purchase of a new solar or heat pump hot water system.
Australians can apply for this incentive no matter which state they live in. However, eligibility criteria apply, so you should check with your retailer before purchasing a new solar or heat pump water heater.
Rebates by state: The savings on offer to you
Before you purchase a new hot water system for your home, you should check your eligibility for state and federal financial incentives, as eligibility requirements will vary from scheme to scheme. For example, rebates may only be available for a particular model, and household income limits and pre-installation requirements may apply.
A hot water system supplier such as Same Day Hot Water Service will also be able to offer you valuable advice on applying for a rebate or financial incentive in your state.
Australian Capital Territory
The Small-scale Renewable Energy Scheme applies in the ACT, as does a program by Canberra’s local electricity supplier for discounts on the price of new hot water heat pumps.
The Home Energy Support Program also provides up to $5000 worth of rebates to Concession Card holders to help with the set-up costs of installing energy-efficient appliances such as a new hot water heater.
New South Wales
In NSW, you can save money on an energy-efficient hot water heater under the Energy Savings Scheme (ESS). You will need to contact an ESS-accredited supplier, such as Same Day Hot Water Service, to confirm your eligibility.
Same Day Hot Water Service can also help you select the best solar or heat pump system to save you money on utility bills and do your bit for the environment. You can expect to save up to $1200 with a hot water system upgrade. We also take care of the application and rebate, so there’s less paperwork for you!
As with other states, further discounts can be offered under the Small-scale Renewable Energy Scheme.
Northern Territory
The NT is not currently offering any territory-funded renewable energy rebates or incentives. However, the federal Small-scale Renewable Energy Scheme does apply.
Queensland
The only financial incentive to upgrade to energy-efficient water heaters currently available to Queenslanders is through the federal scheme.
South Australia
The City of Adelaide’s Incentives for Sustainability program offers residential and commercial replacement of gas and wood-burning appliances with electric or solar-powered alternatives, including hot water systems. Limits of up to 50% of out-of-pocket costs ($1000 for residential and $5000 for commercial) apply.
The Small-scale Renewable Energy Scheme also applies in South Australia.
Tasmania
The federal government’s Small-scale Renewable Energy Scheme is the only financial incentive for new hot water systems available to Tasmanian residents.
Victoria
If you are an owner-occupier of a Victorian home valued at less than $3 million, you may be eligible for the Solar Homes Program. The rebate on eligible heat pump or solar hot water systems is subject to other conditions including household income, but can provide eligible homeowners with $1000 towards the cost of a more efficient hot water system. Same Day Hot Water Service can ensure the hot water heater you choose is one of the eligible appliances and works directly with Solar Victoria to make replacing your hot water system a simple process. Simply follow these steps to apply.
The state also provides support in the way of Victorian Energy Upgrades so that households can replace inefficient appliances such as hot water systems. Homeowners can save up to $1100 a year on energy costs.
The Small-scale Renewable Energy Scheme is also available to Victorians.
Western Australia
In Western Australia, homeowners can save cash on energy-efficient upgrades to appliances such as a hot water system with the Small-scale Renewable Energy Scheme.
Energy efficient system upgrades make financial sense
The savings from a hot water system upgrade can vary depending on your location and the incentives available. However, no doubt changing over to a unit with greater energy efficiency now will save you money in the long run.
As the various rebates and financial incentives frequently change, you should contact Same Day Hot Water Service as soon as you decide to start saving. With many years of experience in sales, repairs and installation of all sorts of hot water systems, we can answer all of your questions about the best model and type of water heater for your home. Call us today on 1300 256 904.