Solar Water Heating Programme FAQ

The answer will be different for every home, depending how many people live there, how much hot water they use, how much sun the home gets, the electricity or gas tariff, and which SWH system they use.

In the average New Zealand household, about one-third of energy costs can be attributed to heating water. An effective SWH system will reduce electricity consumption for water heating by 50% or more over the course of a year. In summer months, the reduction of electricity consumption for water heating should be more than 80%, but in winter months it will be less.

An effective SWH system in a four person home saves about 2,200 kWh (kilowatt hours) of electricity consumption a year. At current electricity prices, that's around $350 to $450 a year, depending on the rate you're paying.

A SWH system contributes indirectly to reducing greenhouse gas emissions by reducing the use of electricity that might otherwise be generated from fossil fuels

The total cost of installing a SWH system in a residential property varies greatly depending on a number of factors but for a residential property can range from about $3,500 to about $8,000. In general, the cost of installation for new buildings is significantly less than for retrofits.

The Government issued a discussion document on SWH in September and received 135 written submissions and feedback from about 120 people at public meetings. There was general support for:

• The provision of objective information, quality assurance and industry capacity building;
  
• Government leadership through the installation of solar water heating systems on Government buildings; and
  
• Financial incentives.
  

• Providing independent information to help consumers decide whether solar is suitable for them, and what kind of system they need;
  
• Motivating demand through promotion;
  
• Improving quality and cost effectiveness by working with industry including setting standards and encouraging training opportunities;
  
• Providing financial assistance to home owners;
  
• Putting more solar water heating systems into Government buildings; and
  
• How much can I save by installing a solar water heating (SWH) system?
  

The programme will run for five and a half years from now, with $15.5 million allocated for the first three and a half years. Funding levels for the final two years will be decided after a review in 2009. It is expected that in the longer term changes to the Building Code to increase energy efficiency requirements and the Home Energy Rating Scheme will contribute to encouraging people to install solar water heating.

The Department of Building and Housing is seeking feedback on proposals to improve the energy performance of buildings.

One of the proposals is to develop an acceptable solution for solar hot water heating systems, which will make it easier for territorial authorities to assess building consent applications for the installation of such systems.

The benefit of solar hot water heating systems is a reduction in consumer power or gas bills for heating water.

The energy efficiency discussion document is available at www.dbh.govt.nz www.dbh.govt.nz

The Home Energy Rating Scheme will provide a star rating (or similar) to householders based on the energy efficiency and energy performance of their houses, and is expected to be launched from December 2007.

As well as rating the building envelope and space heating, it is intended to include a rating of the efficiency of a home's water heating system. It will also provide home owners with recommendations of how to improve their rating, which could include recommending solar water heating as one option.

Overseas experience has shown that homes with better ratings are starting to be valued more highly by buyers, which creates an incentive for people to better their rating and to make improvements to their homes - including potentially by installing solar water heating.

Further information is available at www.eeca.govt.nz

Heat pumps for water heating compete with solar water heating systems and in certain applications are more cost effective. There are currently a small number of domestic heat pump water heating systems available in New Zealand. The heat pump water heating industry will be eligible to compete for support through the contestable Innovation Fund upon meeting appropriate criteria. When the SWH scheme is reviewed decisions will be made about whether the heat pump water heaters should participate in any other aspects of the programme.

The promotion of solar water heating is one of the initiatives in the Labour-led Government Co-operation Agreement with the Green Party. It gives people direct experience of using renewable energy in their homes and may provide a model for supporting uptake of other renewable energy forms in the future.

Solar water heating is one part of a broad approach to promoting energy efficiency and renewable energy sources. It's not the only option the Government is interested in, but it's an important energy choice for consumers.