Solar the most economical

Adelaide Advertiser
Monday 15/9/2008 Page: 44

ELECTRIC hot-water systems may be the cheapest to buy and install but the cheapest by far to operate is a solar system, costing as little as $120 a year. "The old electric hot-water heaters are really expensive beasts to run," said the spokesman for national consumer group Choice, Christopher Zinn. "They came from another era," he said.

When replacing or installing a hotwater system, people need to consider the fuels available - electricity, gas or even the sun, and the type of unit they require - a storage heater that keeps water hot within a tank for use at any time, or an instantaneous heater that heats water as it is required. According to a recent report by Choice, with the average person using about 50 litres of hot water a day, the hot-water system can account for a large part of the household energy bill.

Origin Energy Institute manager Anne Armansin said hot-water systems were often not a purchase that involved a lot of planning, unless a new home was being built. But she said it was important for people to consider their alternatives before an emergency demanded prompt action.

"Those of us who think ahead would be looking at our solar options ... and matching that with a gas booster," she said. "That way, you have hot water at the lowest running cost and the least impact on the environment." Ms Armansin said the outlay costs were high for a solar system - up to $10,000, according to Choice - but rebates could be favourable depending on the type of unit being replaced.

The Federal Government offers a rebate of $1000 to householders with an income of less than $100,000 for replacing an electric storage hotwater system. The purchase of a solar hot-water system may also attract Renewable Energy Certificates under a Commonwealth scheme to promote renewable energy, which can be sold to further reduce the cost of the unit.

The South Australian Government also offers a rebate, in some circumstances, of $500, depending on the unit being replaced. Ms Armansin said the cheapest hotwater system to buy for a medium household was a 250-litre electric storage unit available for about $1078, but if it was connected to a continuous heating system it could cost nearly $1000 a year to run. A solar unit with a gas booster - to heat water on cloudy days - cost about $3000 after the Commonwealth's $1000 rebate but only $120 a year to run.