Queensland Government phase out electric hot water systems

Saturday, 7 February 2009

Replacement of electric hot water systems with greenhouse-friendly systems
On Sunday 3 June 2007, the Premier announced Queensland's Climate Change Strategy - ClimateSmart 2050. The strategy contains a range of initiatives, including a proposal to phase-out existing electric hot water systems in Queensland from 2010. This initiative is the first of its kind in Australia and follows action by the Queensland Government to ban installation of electric hot water systems in all new houses (Class 1 buildings) which came into effect on 1 March 2006.

When will the phase-out of electric hot water systems start?
The strategy identifies 2010 as the year for the phase-out to begin, which will allow sufficient time for industry to prepare for the increased demand for greenhouse-friendly hot water systems (solar, gas or heat pump) and for plumbers to undertake installation training.

Householders will not be forced to get rid of their existing electric hot water systems. After 2010 when an existing electric hot water system requires replacement due to breakdown, householders will need to install greenhouse-friendly systems. Alternatively, householders may choose to upgrade their ageing electric system before it breaks down. The phase-out will be implemented in stages, and the first step will involve replacing electric hot water systems in households within the reticulated gas network area with a greenhouse-efficient hot water system. For households not within the reticulated gas network area, switching to a greenhouse-friendly system will initially be voluntary.

Why is the Government phasing out electric hot water systems in existing homes?
The average Queensland household uses 35 per cent of its energy to heat water. Utilising non-electric systems for water-heating is an effective means of reducing greenhouse gas emissions and reducing household energy bills. Replacing domestic electric hot water systems in Queensland with greenhouse-friendly alternatives should reduce demand by 300 megawatts of electricity and eliminate approximately 2.6 million tonnes of greenhouse gas. The reduced demand would be the equivalent of the energy needs of 328,000 houses, which is almost all the houses in Brisbane City.

What rebates are available now?
Gas hot water systems
Rebates are available for gas hot water systems from the Queensland Department of Mines and Energy (DME). This rebate is $300 (and a $200 rebate is also available for other household gas items, such as stoves, ovens, space heating and clothes dryers). More details on the Gas Installation Rebate Scheme are available from DME at www.dme.qld.gov.au/gasrebate or by calling (07) 3247 3254.

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