The Real Cost of FREE Hot Water

For the first time in its relatively short history, solar water heating is the most affordable form of
water heating both to the homeowner and the planet.

A Federal Government initiative aimed at reducing greenhouse emissions is giving all homeowners
an immediate discount - on average about $900 (but can be as much as $1500) - when replacing
a conventional electric water heater with solar, or buying a solar water heater for a new building
or extension.

So attractive are prices of solar water heaters and their minimal running costs that consumers are
now beginning to make the change from electric to solar without waiting for their existing water
heaters to break down.

The Scheme works on redeeming the 'Renewable Energy Certificates' (RECs) generated each time
a renewable energy source is used in preference to electricity. Each certificate is worth about $30
and depending on the solar water heater selected and the geographical location of its installation,
a certain number of RECs are created.

To simplify the scheme for the consumer, companies such as Solahart and Rheem have been
approved to apply for and redeem the RECs on behalf of their customers. The value of the RECs is
then deducted from the purchase price of the solar water heater.

Figures released by Australia's leading water heater manufacturer, Rheem Australia, show that
for an average family of four whose annual hot water bill is $857*, that same family would pay
only $367* a year for solar heated water - a saving of $490* per annum.

Initial investment for this same family, under the Renewable Energy
Certificate Scheme, could be as little as $2250 installed, based on
the purchase of the popular Solahart 302L model. This cost is
approximately $1350 more than the installed price of an
equivalent electric water heater and should be recouped in less
than 3 years. At the same time the family would be paying 57
per cent less on water heating - a saving of $490* a year.

The other crucial savings factor in the whole hot water scenario is
the reduction in the emission of greenhouse gases. By choosing not
to use electricity to heat our water we can reduce our household
emissions by at least three tonnes a year per household.

And while the set-up costs of solar hot water heating have changed significantly in the past two
years, so have the design and technology.

Manufacturers such as Solahart and Rheem now supply a variety of models giving a choice of
roof-mounted or ground-based water storage tanks that can be gas or electrically boosted in
times of minimal sunshine. Storage capacities also vary - from 160 and 270 litres to 340 and
430 litres. So solar water heating can be custom designed to suit the individual needs of any
household and building design while ensuring hot water all day, everyday irrespective of the
weather.

For more information on the Renewable Energy Certificate Scheme and solar water heating
check out the following websites:

www.orer.gov.au (Office of the Renewable Energy Regulator (ORER))
www.rheem.com.au (Rheem Australia Pty Ltd)
www.solahart.com.au (Solahart Industries)

or call 13 25 52 for nearest Rheem office and 1300 669 876 for local Solahart retailer.

*Based on a general continuous consumption tariff relevant to NSW.

Released by: Linda Brander
Newscast Pty Ltd
 
Tel: (02) 9973 1095
Email: lindabrander@idx.com.au
ABN: 36 003 392 185

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