Government energy incentives in Australia were first established with the introduction of the Mandatory Renewable EnergyTarget (MRET) in 2001, which aimed to ensure that renewable energy reached a 20% share of electricity supply by 2020. The MRET was designed to increase new generation from renewable sources, initially requiring large electricity purchasers to source an additional two percent of their electricity from renewable sources by 2010. This framework was expanded and solidified by the Renewable Energy (Electricity) Amendment Act 2009, which increased the renewable energy generation target and introduced the solar credits multiplier, fostering greater adoption of solar technologies (Parliament of Australia,n.d.).
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 four solar waterzones (Figure 1) and five heat pump climate zones (Figure 2). The energy consumption of solar and heat pump water heaters is calculated by adjusting the energy usage simulated according to the AS/ANZ 4234 standard. For heat pumps, these zones are strategically outlined with certain cities representing the typical climate conditions to optimise heat pump water heater performance:
· Zone 1 (Rockhampton): This area is known for its warm and often humid climate, making it ideal for evaluating heat pump efficiency in warmer conditions.
· Zone 2 (Alice Springs): Represents hot and dry desert climates, posing unique challenges and opportunities for heat pump technology.
· Zone 3 (Sydney): This zone is characterised by a mild temperate climate that offers a balanced environment for heat pump operations.
· Zone 4 (Melbourne): With its cooler temperate climate, it tests the efficiency of heat pumps under cooler and variable weather conditions.
· Zone HP5-AU (Canberra): This zone is known for its colder climate, which provides a rigorous test for heat pump performance incold conditions.
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, LGC, ACCU, and PRC. The article will discuss the first three, as the application focuses on heat pumps and is aligned with EnergyAE services.
1. 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.