Solar hot water systems take advantage of Australia’s supply of sunshine and use solar energy to heat water for household use. A solar hot water system can provide between 50 and 90 per cent of your hot water needs. Solar hot water systems come with electric or gas boosters to provide the rest of your hot water needs.
How do solar hot water systems work?
Solar hot water systems use solar collectors (either solar panels or evacuated tubes) which absorb energy from the sun to heat water for your home. The heated water is then stored in an insulated tank for when you need it. The solar collectors are usually located on the roof of your home - they are best positioned facing north.
On cloudy days, or when hot water usage is higher than usual, your hot water system may need a boost. The booster heating unit will come on when the water temperature falls below the thermostat setting and turn off automatically when the water reaches the required temperature. A gas booster produces less greenhouse gas emissions than an electric booster.
There are many types of solar hot water systems (or solar water heaters) available so it’s important to choose one that suits your needs.
If you live in a frost-prone area ask your installer about frost protection for your solar hot water system.
The benefits of solar hot water systems
Solar systems cost more to buy and install but the extra upfront cost will be recovered over the life of the system through reduced energy bills. Solar systems will recover their costs more quickly in larger households, in warmer parts of the country, or where there is plenty of access to sunlight.
The benefits of solar hot water far outweigh the upfront cost:
- The difference in cost will be paid back as you'll spend less on heating water.
- You will reduce the amount of greenhouse gases your home produces.
And of course another major benefit of solar systems is that they use a renewable energy resource.
Small-scale Technology Certificates
If you install a solar hot water system at home, you could be eligible to receive Small-scale Technology Certificates (STCs). An STC is a measure of renewable energy which can be traded for cash or a discount on the purchase price of a hot water system.

