New Energy Solutions
A Guide to Solar Hot Water Systems for Homeowners in Australia
Heating water with traditional electric or gas-powered systems can be costly and energy-intensive. Solar integration with hot water systems offers an efficient and more sustainable solution for Australian homes.
Solar hot water systems reduce our reliance on fossil fuels, helping lower household energy costs and carbon emissions. This guide will explore how solar hot water systems make a big difference in your home, from the initial setup to the ongoing benefits.
Key Takeaways:
Energy and Cost Savings: Installing a solar hot water system can reduce household energy consumption by up to 70%. It makes a cost-effective and environmentally friendly solution.
Reduced Carbon Footprint: Domestic water heating accounts for about one-fifth of household greenhouse gas emissions in Australia. Homeowners can contribute to reducing emissions and supporting Australia’s transition to renewable energy.
Government Incentives: Australian homeowners can benefit from rebates and incentives, like the Small-scale Renewable Energy Scheme (SRES), to offset the upfront installation costs. These programs encourage the adoption of solar technology and make sustainable choices more accessible.
Professional Installation is Crucial: Opting for a Clean Energy Council (CEC) accredited installer ensures the system is installed correctly, operates efficiently, and qualifies for rebates and warranties. Professional expertise protects your investment and ensures long-term reliability.
What is a Solar Hot Water System?
Solar hot water systems convert sunlight into heat energy to warm water. Solar collectors absorb sunlight and use that energy to warm the water in a storage tank. A solar hot water system is typically composed of three main components.
Solar Collectors
Solar Collectors are installed on the roof to capture sunlight and convert it into heat. Here are the two types of solar collectors available in the market:
Flat collectors are flat, rectangular panels that absorb sunlight through a dark, heat-absorbing surface under a layer of glass or plastic. Flat plate collectors are functional, durable, and generally less expensive. They are a popular choice for residential solar hot water systems.
Evacuated tube collectors are rows of glass tubes containing an inner tube that absorbs heat. The air between the tubes is removed, creating a vacuum that acts as an insulator, preventing heat loss. Evacuated tube collectors are highly efficient and can maintain heat even in cooler climates.
Storage Tank
This is where the heated water is kept for household use. This tank plays a role in maintaining the temperature and supply of hot water. Storage tanks come in different sizes, typically 200 to 400 litres for residential systems. Storage tanks should be sized according to the hot water needs of your household to ensure a consistent hot water supply.
Circulation System
This moves the heated water from the collectors to the storage tank. Active systems use a pump, while passive systems (Thermosiphon) rely on natural flow.
How Solar Hot Water Systems Work for Homes?
You are already familiar with the components of a solar hot water system. Let's discover how they work together.
Solar collectors absorb solar radiation and transform it into heat energy. This heat is transferred to the water circulating inside the collectors. The efficiency of the collectors depends on the amount of sun they receive. From this process, we now have heated water.
The heated water is then transferred to a storage tank, which ensures hot water is available when needed, even when there is no sunlight.
But how does water move between the components? The circulation system is responsible for moving water from the collectors to the storage tank and the points of use (like your taps, showers, or appliances).
In pump-circulated systems, a pump distributes water or a heat transfer fluid between the solar collectors and the storage tank. This system is ideal for homes with limited roof space because the tank doesn’t need to be placed directly above the collectors. Once the water is heated in the collectors, the pump moves the hot water into the tank. When you need hot water at home, it moves from the storage tank to your home’s plumbing system.
On the other hand, the passive system relies on natural convection to circulate water. The tank must be installed above the collectors for the natural flow to work. When the water in the collectors is heated, it rises naturally into the storage tank due to convection (the thermosiphon effect). Once in the tank, the hot water is available for use. This system uses gravity to enable water flow to the taps and showers through your home's plumbing.
Top Reasons to Install Solar Hot Water System
Significant Energy Savings and Carbon Emissions Reduction. Solar hot water systems can reduce your energy consumption by up to 70%. You will see huge savings in your electricity and gas bills by switching to solar hot water systems.
Moreover, domestic hot water use is responsible for about one-fifth of residential greenhouse gas emissions in Australia and a quarter of household energy consumption. You can help reduce greenhouse gas emissions by using the free energy coming from the sun.
Government Rebates and Incentives. The Australian government encourages homeowners to embrace solar energy through rebates and incentives. These programs help reduce the cost of installation, but the conditions could vary in different states. The Small-scale Renewable Energy Scheme (SRES) offers rebates based on the size and efficiency of the system you install.
Low Maintenance Costs. Solar hot water systems require very little maintenance. Most systems can last for 15 to 20 years with minimal intervention. The collectors and storage tank are durable. With proper care (e.g., cleaning the collectors and checking for leaks), we can expect a system will last for the ideal lifespan.
What to Expect Solar Hot Water System Installation in Your Home?
Installing a solar hot water system in your home requires professional expertise as it involves multiple components that must work in sync to optimise energy efficiency. Here are a few steps that you will possibly go through in building the system in your home:
Initial Consultation and Assessment
Site assessment is the first step of the installation process. Your installer will evaluate your energy needs, roof orientation, available space for collectors, and the suitability of your current plumbing system. This step is crucial because the efficiency of the solar collectors (flat plate or evacuated tubes) relies on the orientation and sunlight exposure of your roof.
Choosing the Right System
There are different types of solar hot water systems (flat plate or evacuated tube). Each has advantages depending on the climate and household requirements. Evacuated tube collectors are more suitable for colder climates due to their superior insulation. On the other hand, flat plate collectors are cost-effective and ideal for homes in warmer climates.
System Installation
The installation involves placing the solar collectors on your roof and connecting them to the storage tank. The system's pipes will be installed to carry the heated water from the roof to the tank. Opting for an active system will require installing a pump to circulate the water. Once the collectors and tank are in place, the system will need a connection to your plumbing and electrical system.
Testing and Commissioning
Your installer will conduct tests to ensure everything works efficiently. They will check for leaks, ensure the temperature regulation system is functioning, and verify that the circulation system (whether active or passive) is working correctly. For solar systems, this includes confirming the water flow from the collectors to the storage tank is operating as it should.
How Much Does it Cost to Install a Solar Hot Water System in Australia?
The total cost for installation can range from $3,000 to $7,000 This range depends on the type of system and any additional requirements, like electrical or plumbing upgrades. Installing a solar hot water system may have higher upfront costs. However, it can offer long-term savings due to reduced energy bills and potential government rebates. Ask your installer about rebates and incentives in your region to lower the initial cost.
Professional Installation is Key
Choosing a CEC-accredited solar installer makes all the difference. For instance, at 1KOMMA5, we follow strict guidelines to ensure the system is installed correctly, avoiding common issues such as improper alignment, leaks, or poor integration with your home’s plumbing and electrical systems.
Working with certified installers gives you access to government rebates and incentives. In addition, manufacturers typically require professional installation by certified experts to honour the warranty on components such as solar collectors and storage tanks.
The cherry on top is you will get after-sales support. With professional installation, it is all about making sure you get the most out of your investment and enjoy long-term savings.
FAQ
Frequently Asked Questions about Installing Solar Power
There are great government rebates/incentives still in place for eligible households. Basically, the larger the panel array, the more STCs your solar system generates as it is based on the expected output of the system over time.
When you buy a solar system, the purchase price is normally reduced by the value of the STCs created by your system. You simply fill out a form on the day of installation to confirm that the system has been installed, and that’s it. There is no additional paperwork that you need to do.
Small-scale Technology Certificates (STCs)
Small-scale Technology Certificates (STC’s) – previously known as Renewable Energy Certificates or RECS – are created when a Renewable Energy System such as a Solar PV system is installed.
The number of STC’s depends on the predicted amount of energy generated and hence the larger the system the greater the rebate. In essence, one STC is created for every megawatt-hour of production capacity of the system.
This is further multiplied by the number of years the system is likely to generate energy (for home solar systems, this is usually 15 years, although the life of the solar panels themselves is considerably more than that).
This incentive program is being phased out until 2030, so each year the number of certificates your system is eligible for reduces.
STC Price
The system for trading and pricing STCs for small systems is managed by the Small-scale Renewable Energy Scheme (SRES).
STCs are bought by Liable Parties (usually electricity retailers) and must be surrendered at the end of each quarter. As the number of STCs that are required to be surrendered is a fixed amount each year, but the number of STCs created is variable, the price paid for STCs also varies and is determined by supply and demand.
The Federal Government legislated in 2010 a fixed price for STCs by implementing a Clearing House system where STCs can be bought and sold for $40. However, there is no requirement for Liable Parties to purchase from the Clearing House, so they are likely to only do so if there is a shortage of STCs or the market price exceeds $40. There is currently a surplus of STCs in the market which means the market price of STC’s below $40
The Feed In Tariff is only something you need to worry about if you don’t have battery storage.
The price your chosen energy retailer pays for any excess electricity generated from your solar panels is recorded as a credit on your power bill.
In NSW, solar power is fed into your home as it is generated and your household will use it first before you draw power from the grid.
This means that for every kWh of solar power used in the home you are directly saving money you’d spend on your power bill. This reduction in your power bill is the main financial benefit of solar power.
Everything else will be bought up at an agreed rate by your electricity retailer.
At the moment, most feed-in tariffs are between 5 and 10 cents per kWh, with many being about 7 cents. They bounce up and down a lot, for example in previous years they have been up over 20 cents per kWh. Typically, they are always at least 5 cents per kWh.
Once you sign up for a 1KOMMA5° Installation, we immediately submit your grid application to the relevant energy distributor. For systems up to 5kWs, this is a formality. For larger systems it can take a few days or more. Once we receive approval, your installation will be managed by our installation coordinator, who will welcome you to 1KOMMA5° and book an installation date for you. This is generally booked within around two weeks and installation dates are available Monday to Friday, weather permitting.
We endeavour to have your system installed within 2-4 weeks unless you request us to hold for whatever reason. Due to our strict safety policy, we do not install solar systems when it rains. In the event of inclement weather, we will rebook your installation as soon as possible. We always work with your requests as we strongly recommend that someone be home on the day of installation.
Green Loans can be an affordable way to pay for your solar power system and is only available for approved products. As a Clean Energy Council Accredited installer, all our systems qualify.
Green Loans can be used to finance 1KOMMA5° systems from $1,000 to $30,000 over a 2-7 year term. Once you have received a referral from 1KOMMA5°, online approval usually occurs within 1-2 business days. Green Loans have a competitive fixed interest rate that is as low as 7.99% p.a.* | Comparison rate 9.21% p.a.^ Establishment fee of $299 added to the loan amount. $2.70 per week account keeping fee included in repayments.
To be eligible to apply you must:
Be over 18 years old and an Australian resident or citizen
Own or be purchasing a home
Be employed, self-employed, a self-funded retiree; or is receiving the Government Age Pension
Have an Australian driver’s license or Passport
Provide two most recent payslips or 90 days of bank statements
There are a number of good, competitive Green Loan providers – ask us about the options available.
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