The solar thermal market in Australia experienced a continuation of prior trends in 2022: Cumulative data showed a 10% decline in solar domestic water heater installations since 2021, which we have largely attributed to the rising popularity of heat pumps.
The total glazed collector area in operation by the end of the year was 3,326,000 m2.
Unglazed collectors, mostly used for pool heating, now total a whopping 5,905,000 m2 in operation but are facing similar challenges from heat pumps as low-cost, high-capacity products are becoming common for pool heating. This may pose a challenge for energy consumers going forward, as the lack of Australian Standards or labeling requirements makes it difficult to compare product quality or estimate their energy performance.
In total, Australia had an impressive 9,505,000 m2 of solar thermal collector area in operation by the end of the year.
A major market shift is expected in October 2023 when Victoria—a state that accounts for about 50% of solar domestic water heater sales at present—relaxes some of the water heater requirements under the six-star regulations for new homes. Currently, home builders are mandated to install either a rainwater tank or an efficient water heater (solar or heat pump). In areas where gas reticulation is available, the regulations require that the water heater must be gas boosted. However, a subtle adjustment in the move to a seven-star standard will allow electric boosted solar and heat pumps water heaters in all locations. Builders and plumbers are expected to take up the lower upfront cost heat pump option in a large majority of cases.
We will continue to monitor these market trends and look forward to providing an update in 12 months’ time.