Archive for May, 2008

We have worked non-stop for the last few weeks and are ready so that you can get solar hot water.

But it is raining and World Environment Day has been postponed to 21 June.

That just leaves me to say the biggest thank-you to the whole team who made this possible. All of you have worked way beyond the call of duty. We are ready for launch one whole month before our original plan.

It is amazing what is possible when a dedicated team pulls together.

Thanks to Hugh who has inspired me to think larger than I dared to when I first came to him. His constant reminders to focus on eliminating the bottlenecks brought us forward at this speed.

Thanks to Bettina, we’ve got a simple and highly user-friendly website. You have no idea how often I get emails from her that are sent at 3.45am …

Thanks to Jenny who juggled her young children and design skills whenever I was ready for the next step.

Thanks to Neil who patiently programmed all the intricacies to deal with government rebates, selecting the right system and adding the collection of ideas for improving the site.

Thanks to John who offered his invaluable advice freely. His dedication to quality and customer service makes him the ideal partner for the installations.

Thanks to Don who managed and delivered the most sustainable way to produce our marketing materials.

A big thank you to Jackson and Craig who spent a Sunday planning the future of how we can deliver this service to even more Australians.

And the biggest thank you to my partner Caroline, who has been feeling like a sole mother for the past 8 weeks. I could not have achieved this without her backing.

How much you save on electricity depends on the amount of hot water you use and how efficient your solar hot water system produces hot water.

According to the Department of Environment and Water Resources, it is between $300 – $700 each year that you save on electricity. On a monthly basis that is $25 – $58.

To get a more accurate estimate for your personal situation, have a look at your electricity bill. There are usually two types of tariffs. Most of your electricity is charged on Tariff 11.

The other tariff is the off-peak or night tariff. Check on your bill for Tariff 31 or Tariff 33.

Usually you only have one of those on your electricity bill. Many electrical hot water systems are connected to it. (Please note: Other appliances that do not need continuous energy might also be on that tariff, e.g if you have a pool, the pool pump.)

The total for Tariff 31 or Tariff 33 gives you a good indication of how much you have spent for your hot water in the past.

Depending on where you live, your solar hot water system contributes most of your hot water needs for free. Here is what some of the state governments have researched:

• Queensland: 80%
• NSW: 65-80%
• Victoria: up to 75%
• South Australia: 60-70%
• Perth: 65-85%

And the rest? Every solar hot water system has a booster (either electric or gas) that is used to provide hot water when there are too many cloudy days.

Also consider the rising electricity prices (17% in the last two years). These make it even more useful to save on electricity.

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The $12,000 is an estimate using the current information we have collected from government sites. This is not a promise and might not apply in your particular circumstances.

How did we calculate that?

The yearly electricity savings are between $300 and $700 (Source: Department of Environment).

The Environmental Protection Agency estimates the life of a solar hot water system to be between 15 and 20 years.

So in an ideal scenario, you could save $700 per year x 20 years, which is $14,000.

You can install a solar hot water system from $1,800 (after rebates and depending on your location and needs).

Deducting the roughly $2,000 off the $14,000 leaves a potential profit of $12,000.

How else could you calculate it?

As you can see this calculation is the ideal scenario. Assuming that only $300 are saved per year and the system lasts 15 years, the total savings would be $4,500. There are systems that might cost around $4,000 fully installed (again after rebates).

So this scenario is not as profitable.

What we have not considered is the rising electricity prices.

Thinking further

However, even in this most negative scenario, you are still better off getting a solar hot water system than not doing anything – just financially.

Taking the environmental impacts into account: 3,000 kg of CO2 saved each year (25% of household greenhouse gas emissions) makes it an excellent proposition.

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No one can give an exact estimate of how long a solar water heater lasts. Just the same as for any other technical appliance.

However, here is what the Environmental Protection Agency says about solar water heater lifespans:

“A solar hot water system normally lasts 15 to 20 years, which is up to double the life of an electric system. They are a well-proven product and have experienced substantial development over the past decade, with newer models expected to last even longer.”

According to Sue Roaf, author of “The Ecohouse 2 – A Design Guide” (Architectural Press, 2003) writes:

“A good liquid solar collector should have a life expectancy of 20-30 years. Most of the collectors built since 1980 are manufactured with materials that should give a 30-50 year lifespan.”

What follows is that the tank might need replacement before the collectors. As they are two separate pieces only connected by plumbing, it is quite simple to do that.

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Most Australian individuals qualify for at least one solar hot water subsidy. Many qualify for all available rebates. The quickest way to find out how much the government pays you is to go through the online process.

There are 3 general subsidies and financial incentives:

The Federal Solar Hot Water Rebate

The federal government pays eligible householders a $1,000 solar hot water rebate as part of its new Renewable Energy Bonus Scheme (effective February 2010).

Renewable Energy Certificates (REC’s)

Technically not a rebate, REC’s are an important financial incentive. They can be assigned to a registered agent who pays around $30 (current price) for each REC. Most solar hot water systems have between 30 and 40 REC’s. Criteria are:

• The solar hot water system needs to be on the register of solar water heaters.
• The REC’s need to be created within 12 month of installation

For details, see the FAQ on renewable energy certificates.

State Rebates

Queensland does not currently offer a state rebate. NSW is currently paying a $300 rebate.

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