The Institute of Energy Economic and Financial Analysis (IEEFA) says giving customers more choice to use solar energy for water heating, could cut power bills and relieve pressure on the national grid.
Department of Climate Change, Energy, the Environment and Water’s (DCCEEW) data shows that 32 percent of the country’s total electricity generation comes from renewable energy sources, with 14 percent from solar.
DCCEEW data also showed that solar hot water produced 21.3 petajoules of energy, which is 4.2 percent of Australia’s total renewable energy mix.
“It is possible to treat a home hot water system like a thermal battery, storing heat in hot water until it is needed,” said Gabrielle Kuiper, distributed energy resources specialist and guest contributor at IEEFA.
Solar hot water (or solar water heating) involves heating water by sunlight through a solar thermal connector.
According to the United States Department of Energy, solar water heating can be a cost-effective way to generate hot water in consumers’ homes, and can be used in any climate.
The DCCEEW said that water heating is the country’s second-largest household energy use segment, accounting for 15 to 30 percent of total energy consumption.
The department also said that solar water heating is the largest source of greenhouse gas emissions among individual Australian households.
“Flexible hot water not only reduces costs for its owners, but for the system as a whole if it is dynamically managed to soak up renewable energy when it is abundant and when network capacity is available. In these ways flexible hot water can lower bills for all electricity system users,” said Kuiper.
IEEFA analysis also showed that if gas appliances were replaced with efficient electric alternatives at their end of life, the average household in Victoria—where gas heating is widespread—could save $1,200 a year on energy bills.
“We know there are cost savings, especially for consumers who can heat water with their own solar or take advantage of ‘solar sponge’ retail tariffs in the middle of the day or participate in retail demand response programs,” said Kuiper.
