New Energy Solutions
Achieving an Energy-Efficient Home with Solar Heat Pumps
Although traditional electric heaters seem like a straightforward solution, their high operating costs can become a significant burden over time. Solar heat pumps, on the other hand, offer an eco-friendly alternative that leverages solar power to keep your home comfortable year-round.
Still wondering if a solar heat pump is a fancy upgrade or a wise long-term investment? Let us cover some common questions about it and see if they could be the game-changer your home needs.
Key Takeaways:
Efficient Heating and Cooling System: Solar heat pumps are an eco-friendly, energy-efficient solution that utilises solar power to heat and cool your home year-round.
Sustainability and Lower Environmental Impact: Modern solar heat pumps use eco-friendly refrigerants with lower Global Warming Potential (GWP). They are a sustainable and environmentally responsible choice for homeowners looking to reduce their carbon footprint.
Cost-Effective in the Long Run: The initial cost of installing solar heat pumps may be higher than traditional electric heaters, but their operating cost is significantly cheaper.
Scalable and Flexible Systems: This system is flexible enough to be scaled up or added to over time, making it an adaptable solution as your energy needs grow or change.
What is a Heat Pump?
A heat pump is a device that moves heat from one place to another to heat or cool your home. It works like a reverse air conditioner. Rather than generating heat, a heat pump transfers it from outside to inside (or vice versa), making it an energy-efficient option for heating and cooling.
There are different types of heat pumps. Each is suited for specific needs:
Air to Air
These are the most common types of heat pumps. They work by moving heat from the outside air into your home to warm it up or removing heat inside your home to cool it down. Think of them as similar to air conditioners, but they also provide heat during colder months. The system uses a refrigerant that absorbs and releases heat as it moves between the outdoor and indoor units.
Recent advancements in refrigerant technology have led to the development of more eco-friendly options. Modern heat pumps typically use refrigerants like R-32 and R-290 (propane), which have a much lower Global Warming Potential (GWP) than older refrigerants like R-410A. This innovation means they are a more sustainable choice for your home.
Imagine you are in the middle of a cold winter morning. Your home feels chilly, but instead of firing up a power-hungry electric heater. You turn on your air-to-air heat pump. It draws in the outside air, warms it, and distributes it throughout your living room.
Fast forward to summer, and the same system will cool your home by pulling heat from the indoor air and releasing it outside, keeping your home comfortable all year round. It is perfect for homeowners looking for an all-in-one system that heats and cools their homes.
Air to Water
An air-to-water heat pump works similarly but transfers heat from the air to water. However, instead of circulating warm air inside, it heats water. Then, it provides space heating (through radiators or underfloor heating) and hot water for taps and showers.
Picture a chilly evening when your air-to-water heat pump is working hard. It draws in outdoor air, warms it, and heats water that flows through your home’s underfloor heating system or radiators. Your living spaces stay cozy, and hot water is always available whenever you need a relaxing shower or bath.
With this setup, your home stays efficiently heated, and you have a constant supply of hot water— all powered by the same system. Air-to-water heat pumps are ideal for households that combine home heating with a hot water supply in a single, efficient solution.
Other Types of Heat Pumps
There are a few other less common types:
Ground Source uses the earth's stable temperature to deliver efficient heating and cooling for your home.
Water Source uses the temperature of nearby water sources, like lakes or rivers, to transfer heat.
These types are typically more complex and unusual in residential Australian homes.
Why Combine Solar Power with Heat Pumps?
Although heat pumps use significantly less electricity than traditional electric heaters or gas systems, they still require electricity to operate. If you have an existing solar panel system, it can directly supply the electricity needed to operate the heat pump. Using solar energy to power the heat pump can drastically lower operating costs. They are particularly beneficial in regions with high electricity prices.
How Does Solar Panel Work with Heat Pumps?
Solar panels supply power to heat pumps like they power other appliances in your home. The magic happens in how they complement each other for maximum efficiency. Imagine you have a hot water heat pump. During the day, your solar panels convert sunlight into electricity to run your heat pump. Instead of drawing power from the grid, your system uses clean, renewable energy to meet your heating needs.
Here is how it works:
When your hot water heat pump runs, it extracts heat from the air and transfers it to the water in your hot water system. On sunny days, your solar panels generate enough electricity for your appliances, like your fridge, washing machine, and air conditioning system.
Even on cloudy days or during high-demand periods, any excess energy stored in a battery can step in to power your heat pump. If your solar system doesn’t have batteries, it can switch to the grid as a backup to keep everything running smoothly.
How Does a Solar Heat Pump Differ from Traditional Electric Heaters?
You are probably familiar with electric heaters. They are easy to set up, but when it comes to your monthly energy bills, they can be a real shocker. Why? Because these heaters work by converting electricity directly into heat. That sounds simple enough, but it is a power-hungry process, especially in colder months when you need the heat the most. They consume a lot of electricity, leading to paying more for energy bills.
Now, let us look at how solar heat pumps cut energy costs. Instead of generating heat from scratch, a solar heat pump uses solar energy to boost and circulate heat from the air. The whole process is far less taxing on your electricity. This clever use of renewable energy means using less power than a traditional electric heater.
Investing in a solar heat pump may be more expensive, but it is much cheaper to operate. You will save money on energy bills while building a greener and sustainable home.
Are Solar Heat Pumps Effective in Extreme Weather Conditions?
The Australian climate can vary from the sweltering heat of central Australia to the frosty winters in elevated regions like the Snowy Mountains or Tasmania. So, how do solar heat pumps hold up in such extreme conditions?
The good news is solar heat pumps can endure these varying weather patterns. For example, the Stiebel Eltron brand has an operating temperature range of -7 to +42°C. However, on colder days or when there is a high demand for hot water, a heat pump might need a little extra help to keep up. You might need a heat pump booster to enhance your system.
A booster activates when the ambient temperature drops too low or more hot water is needed. Some models include this feature or offer it as an optional upgrade. The booster helps maintain water temperature by supplementing the heat pump’s work with additional heating power. You won’t have to worry about running out of hot water, even during those colder stretches of the year.
Is It Better to Install a Heat Pump or Solar Panels First?
If you are starting fresh, you should assess how much energy your household uses daily. Installing solar panels requires sizing the system to match your consumption. This part is where planning becomes key. Collaborating closely with your solar installer is essential for planning the most suitable system for your home.
If you already have a heat pump, you can factor its energy demand into your solar system design. This step ensures that your solar installation generates enough power for your current needs and to power your heat pump. Many homeowners take this opportunity to explore available solar rebates or incentives, which can significantly reduce the upfront costs of their solar investment.
Not ready to commit to solar yet? A heat pump alone is still an energy-efficient option compared to traditional heating and cooling systems. Plus, integrating solar with your heat pump is a seamless process if you add it later. It’s a flexible solution that grows with your energy needs and goals.
How Much Do Solar Heat Pumps Cost in Australia?
The cost of installing a solar heat pump in Australia depends on several factors, including the type of heat pump, the size of the solar panel system, and your home's specific energy requirements.
If you are eyeing a premium hot water heat pump brand like Stiebel Eltron, the costs can range from $5,000 to $7,500. The price depends on the specific model and system requirements. This range includes both the cost of the unit and installation.
Standard residential solar panel installation in Australia (around 6.6 kW) can cost around $5,000 to $9,000. The price depends on the brand and quality of panels and inverters. Aside from that, these factors continue to influence costs:
Rebates and Incentives: Australian solar rebates can significantly lower the upfront cost of your solar installation. Be sure to check state and federal government incentives for solar energy systems.
System Size and Capacity: The size of the solar and heat pump system depends on your household's hot water and heating needs. Comprehensive setups typically cost more due to higher capacity units and the additional materials needed for installation.
Installation Complexity: The layout of your home and accessibility to the installation site can affect labour costs. For example, retrofitting a heat pump into an existing system might cost more than installing one in a new build.
How to Find a Good Solar Heat Pump Installer in Australia?
Finding the right solar installer begins with understanding your options and what to look for. Installing a solar heat pump requires plumbing and electrical skills. Choose a certified installer who has a good track record with these systems. They should offer comprehensive consultations and transparent pricing.
By asking the right questions and evaluating your options, you're already on the path to making an informed decision.
1KOMMA5° could be your starting point. We believe in empowering Australian homeowners to take control of their energy choices. With the right combination of solar panels and heat pumps, you can create a system that suits your unique needs and future goals.
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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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Need more information?
Head over to the 1KOMMA5° blog for more helpful tips and other important guides on everything solar, from inverters, panels and batteries to how to make the most of your investment for years to come.