Solar hot water systems use the power of the sun to heat hot water, which is then stored in a storage tank.

Attached to the tank is a booster which keeps water heated to the right temperature when the sun is not able to, such as a cloudy day or of a night time.

There are 3 main components in Solar Hot Water Systems – Solar Collectors, Storage Tank & Booster.

The size of your storage tank and solar collectors will depend on your household hot water requirements.

Solar Collectors

There are two types of collectors in solar hot water systems. Flat Plate Collectors and Evacuated tubes.

Flat Plates are more common, while Evacuated Tubes are more efficient and appropriate for frost-prone areas. As Victoria is in a climate prone to frost, we recommend Evacuated Tubes.

They need to be installed on a section of north-facing roof which isn’t affected by shade.

Water from the storage tank is circulated through the solar collectors. The solar collectors are designed to absorb the sun’s heat and transfer it to the water. Once the water is heated, it returns back to the storage tank.

Storage Tank

The Hot Water storage tank can either be located on the ground (Split System) or on the roof (Close Coupled).

If located on the roof, your house’s roof structure must be adequate to support the weight of all the water in the tank.

Most common is a Split System, where the storage tank is located at ground level. Water is pumped via a circulation pump from the storage tank, up through the Solar Collectors and back to the Tank. The pump requires a small amount of electricity.

Booster

To provide hot water on cloudy days or when demand exceeds supply, you need either a gas or electric Booster.

When deciding on whether to have a gas or electric Booster, you need to consider what services and tariffs your property has access to.

Gas Boosters can be attached directly to the storage tank or mounted above or beside the tank. Electric Boosted systems contain an internal element inside the Storage Tank.

Natural Gas Boosters are much more economic to run than electric, however, electric boosted systems are currently eligible for one of the government grants.

Solar Hot Water systems are a great option for those wanting to lower their carbon footprint and running costs by harnessing the power of the sun to heat their hot water. Benefits of these systems include:

• The cheapest running costs of all home hot water systems
• Low environmental footprint
• Rebates – Currently the Victorian Government are offering rebates for replacing less energy efficient hot water systems with a Solar Hot Water system

While Solar Hot Water systems are the cheapest water heating system to run, they are the most expensive to install, so the investment is a long term one.

To assist with installation costs, there are currently Government Rebates available for upgrading to Solar How Water (see installation & running costs section), so take advantage of them while they are still available.

Solar Hot Water installation costs:

Installation costs can vary dependent on whether its new or existing home, and if its an existing one, what type of hot water system is being replaced. For example, if we are replacing an existing Solar Hot Water system with a new one, then the pipework will already be there, reducing the cost of the install.

We work with both builders to install Solar Hot Water systems in new homes and with home owners to install them in existing homes. Please note if you are installing Solar Hot Water in an exisiting home which has never had this type of system, the copper pipes leading from the storage tank to your roof will be visible (as opposed to being built into the framework during new builds).

Scroll down for our Hot Water Comparison chart below and compare installation costs and running cost of Solar Hot Water compared to other types of hot water systems.

Solar Hot Water running costs:

The two major benefits of installing a Solar Hot Water System are low running costs and environmental benefits.

As you are harnessing the power of the sun to heat the water, you can save up to 75% on running costs. Why not 100%? They are designed so you don’t run out of hot water, even if they haven’t been able to generate enough hot water thorough solar. So when this happens, the electric or gas booster kicks in, topping up your hot water.

See below for our average annual running costs guide for Solar Hot Water, based on a 4 person household.

Government Rebates

There are currently 3 different Government Rebate Schemes those installing Heat Pump Hot Water can benefit from:

• Small-Scale Technology Certificates (STCs) – this is a national scheme which provides rebates when installing an approved brand and model. The rebate is calculated on what is being installed, the suburb it is being installed in, the installation date and the amount of greenhouse gas the system is expected to save during its lifetime.
• Victorian Energy Upgrade Scheme (VEU) from which you can claim rebates in the form of VEECs (Victorian Energy Efficiency Certificates) – a similar scheme to STCs, offered by the Victorian Government. If eligible, you can claim both rebates.
• Solar Vic – A means-tested Victorian Government scheme which provides a rebate for Hot Water Heat Pumps & Solar Hot Water Systems. Please note, only electric-boosted Solar Hot Water Systems are eligible.

All scheme eligibility are subject to certain criteria and limited to approved brands and models. Once of the main criteria for STCs and VEECs is you need to upgrade from a less energy efficient hot water system. However, the Solar Vic rebate is not dependent on what you are upgraded from, rather it’s means-tested.

All of our quotes include any rebates you are eligible for. For the STCs & VEU programs, we are able to apply for the rebates on your behalf, but the Solar Vic scheme needs to be claimed by the customer.

Looking for other options? Check out Instantaneous Hot Water Systems (also known as Continuous Flow Hot Water) or Heat Pump Hot Water Systems