Australian federal and state governments offer generous subsidies for a variety of clean energy technology, including solar & heat pump water heater (HPWH) upgrades.
Australian energy incentives are closely aligned with the AS/ANZ 4234 standard, which provides a framework for assessing the energy performance of solar and heat pump water heaters across various climate zones. The standard assesses their performance across 5 climate zones (Figure 1). The energy consumption of solar and heat pump water heaters is calculated by simulation according to AS/NZ 4234 standard. For heat pumps, these zones include weather files defined by certain cities representing the typical climate conditions of that region.
Figure 1. AS/NZS 4234 climate zones for HPWHs
These climate zones are crucial for manufacturers and engineers as they design and test heat pump systems to ensure efficiency and effectiveness across Australia's diverse environmental settings. This tailored approach helps maximise heat pumps' potential to improve energy efficiency and meet sustainability goals.
Australia's approach to promoting renewable energy and energy efficiency is structured through various certificate schemes, such as STC, VEEC, ESC, and PRC. The article will discuss the first three, as the application focuses on heat pumps and is aligned with EnergyAE services.
Figure 2. Australian incentive scheme overview1. Renewable Energy Target (RET) Scheme
· Applicability: Nationwide
· Target Audience: Residential
· Certificates: Small-scale Technology Certificates (STCs)
· Regulated by: Clean Energy Regulator (CER)
· Standards: AS/NZS 4234:2008
· Incentives: Small-scale Technology Certificates(STCs) for solar panels, wind turbines, and water heating systems. The STCs are tradable and can offset the installation cost.
· Administration: Managed by the Clean Energy Regulator
The RET scheme incentivises residential installations of renewable energy systems in Australia, such as solar water heaters and heat pumps, by issuing STCs. These certificates are calculated based on the displaced energy (GJ/year) compared to a reference electric water heater. This calculation directly translates into energy savings, promoting the reduction of green house gas emissions.
2. Victorian Energy Upgrades (VEU) Program
· Applicability: Victoria
· Target Audience: Residential and Commercial
· Certificates: Victorian Energy Efficiency Certificates (VEECs)
· Regulated by: Essential Services Commission (ESC)
· Standards: AS/NZS 4234:2021
· Incentives: Discounts on energy-efficient products like lighting, heating, cooling, and water heating systems. This program has helped over two million households since its inception in 2009.
The VEU program offers incentives through the generation of VEECs, which are awarded based on the abatement of GHGs compared to a baseline scenario. This scheme covers residential activities (Part 1D) and commercial activities (Part 44), enhancing energy efficiency across various applications.
3. Energy Savings Scheme (ESS)
· Applicability: New South Wales (NSW)
· Target Audience: Residential and Commercial
· Certificates: Energy Savings Certificates (ESCs)
· Regulated by: Independent Pricing and Regulatory Tribunal (IPART)
· Methods: Home Energy Efficiency Retrofits (HEER) for residential and Industrial Energy Efficiency Activities (IHEAB) for commercial
· Incentives: Discounts on energy-efficient products like lighting, heating, cooling, and water heating systems. This program has helped over two million households since its inception in 2009.
The ESS in NSW encourages energy savings by offering ESCs, which reflect the amount of energy saved through efficiency improvements. The calculations incorporate a variety of factors, including baseline energy use,energy consumption factors, and regional adjustments.
Reference:
- Parliament of Australia. (n.d.). The Renewable Energy Target: a quick guide. Retrieved from https://www.aph.gov.au
- Clean Energy Regulator. (2024). Renewable Energy Target (RET). Retrieved from https://www.cleanenergyregulator.gov.au
- Essential Services Commission. (2024). Victorian Energy Upgrades (VEU). Retrieved from https://www.esc.vic.gov.au
- NSW Government. (2024). Energy Savings Scheme (ESS). Retrieved from https://www.ess.nsw.gov.au
- Energy Consult Pty Ltd. (2023, December). Report on residential and small business hot water baselines. NSW Government. Retrieved from https://www.energy.nsw.gov.au/sites/default/files/2023-12/202312-EnergyConsultPtyLtd%E2%80%93Report-on-residential-and-small-business-hot-water-baselines.pdf
- EnergyAE presentation 2024.
