Stiebel Eltron Australia

Recently, there has been much discussion surrounding the suitability of heat pump technology as a renewable energy water-heating solution. Stiebel Eltron Australia General Manager- Renewables, Glenn Day, clears the air on heat pump technology and provides some compelling insights.

As Australia embarks on the phase-out of greenhouse-intensive hot water systems, debate continues to rage over the relative benefits of the replacement technologies on offer-instantaneous gas units, gas storage, solar systems and heat pump technologies. An apparent shortfall in consumer understanding of these technologies, along with rampant economic and political speculation, is threatening to impact the uptake of some of these environmentally friendly water-heating technologies.

The introduction (and subsequent lowering) of Government-funded Renewable Energy Bonus Scheme rebates and the application of the Renewable Energy Certificate (REC) program has also fuelled discussion, with some calling for their overhaul or abolition. Additionally, misleading reports pairing the Renewable Energy Bonus Scheme with the recent ‘insulation rebate rorting' scandal, have blurred the issue even further. Moreover, media commentators, politicians, manufacturers and powerful lobby groups weighing-in to the argument have seen the public flooded with misleading or outright biased information. Meanwhile, homeowners looking to adopt ‘green' water-heating technologies have been left in a state of confusion.

While all replacement technologies promise to deliver some degree of environmental benefit, homeowners are urged to consider a range of factors that contribute to overall environmental performance. Broadly, these include operating efficiency, sustainability, access, and installation, operating and running costs. If supplied with clear, comprehensible information, homeowners will be better positioned to select the most suitable water-heating technology for their circumstance.

The electric misconception
So far, much of the debate has revolved around the misconception that all electric water-heating technologies are inherently environmentally unfriendly. While this is true for electric immersion water heaters, it is not so for heat pumps. In fact, heat pump technology is incredibly energy efficient, with some units displaying typical operational efficiencies of 300 per cent-for every 1kW of electrical energy used to operate the heat pump 3kW of heat energy is transferred into the stored water.

Typically, 75 per cent of the energy used in heat pump applications is taken from the air we breathe (ambient air conditions will determine percentage) and can be considered ‘free' or ‘renewable'. The remaining 25 per cent can be obtained from renewable energy sources, effectively making the heat pump a ‘zero-impact' water-heating technology.

Renewable sources of electricity generation are expanding every year, with homeowners already provided access to these ‘clean' energies as an option from their provider. Over time, with a greater proportion of electricity being sourced from renewable means, the overall carbon impact of electricity generation has the potential to fall. Gas fired appliances, by contrast, offer much less scope for further reducing greenhouse gas emissions into the future.

In recent times in Australia, heat pump technology has been accused of not being a renewable energy technology due to the electricity required to drive the unit's internal compressor-despite this being a small amount. In fact, harvesting energy from the air as a heat pump does can be likened to a solar water-heating system harvesting energy from the sun. Both technologies use a small amount of electricity-the heat pump to run a compressor, and the solar system to run a re-circulation pump.

Interestingly, European law recently recognised heat pumps as a renewable energy technology, acknowledging the potential of aerothermal energy (stored in the air), geothermal energy (stored in the ground), or hydrothermal energy (stored in standing water) as sources of renewable energy. It's only a matter of time before this decision flows through to the Australian market where climate conditions are even more conducive to heat pump operation when compared with Europe.

Rebates and rewards
The effectiveness of the Government-funded Renewable Energy Bonus Scheme rebates and the Renewable Energy Certificate (REC) program has been called into question by some groups. While it stands to reason that rebate schemes must be economically viable and impervious to rorters, they have been put in place to provide assistance for homeowners wishing to make the transition to ‘greener' water-heating technologies.

With hot water accounting for 40 per cent of annual household energy bills, it makes sense to develop a framework aimed at improving efficiencies in this area.

At the time of writing, the rebates for heat pumps were $600, while solar technologies were eligible for a rebate of $1000-both technologies deliver similar energy efficiencies.

Gas, on the other hand, does not present a long-term, sustainable water-heating solution, as it is a non-renewable fossil fuel. Furthermore, gas resources are expected to decline in the years to come, eventually resulting in higher gas tariffs. There will be a point in the future at which the Government will have no choice but to transition the population from gas to more renewable energy sources. When we inevitably reach this point, we can safely predict that whatever Government transition scheme is implemented will be far more costly than any existing rebate program.

At present, gas hot water units generally deliver burner heating efficiencies of approximately 80 to 85 per cent. However, they do so by burning a non-renewable fossil fuel. While they may be somewhat operationally efficient, their impact on the environment is far-reaching. Further efficiencies can only be gained with improvements to burner/combustion technology. Here, potential efficiency improvements are in the single figures.

Conversely, heat pump technologies deliver operational efficiencies in the region of 300 per cent and have the potential to improve further as compressing, refrigeration and condensing technologies are enhanced into the future. Adopters of heat pump and solar technologies will be future-proofing their homes against rising energy costs. Along with optimising carbon footprint, the heat pump's operational efficiencies will reward homeowners with dramatically reduced ongoing operation costs when compared with LPG and legacy technologies.

The Australian answer
Australia's enormous geographical area and climatic diversity present additional challenges to providing homeowners with energy- and cost-efficient water heating solutions. A recent Regulatory Impact Statement centred on the hot water industry reported that of the 3.7 million homes currently dependant on electric hot water, more than 50 per cent are not connected to reticulated natural gas. Here, heat pump technology, solar units and bottled gas are the only hot-water heating options.

With bottled gas an expensive-and often prohibitive-alternative, the challenge is for heat pumps and solar systems to provide domestic hot water in these areas. Given that heat pumps and solar systems deliver similar operational efficiencies, homeowners will look to other factors when choosing their hot-water solution.

The heat pump's straightforward installation requirements present clear advantages over solar technologies. Simply connecting-up the heat pump's cold water inlet and the hot water outlet can see homeowners provided with access to hot water on the day of installation. Importantly, installation can be performed by any plumber-there is no need for refrigeration or gas fitting training. This avoids costly and time-consuming set-up and maintenance associated with the specialised roof-top installation of solar system panels and long runs of water reticulation pipe-work.

Perhaps even more important is the heat pump's ability to operate at any time of day. Unlike solar technologies, heat pumps can continue to operate at night, even where temperatures drop to -20 degrees Celsius. Here, heat pumps equipped with ‘active de-frost' capabilities permit households to generate hot water at colder air temperatures.

Moving forward, the ‘replacement water-heating technology' landscape looks set evolve further-a real impediment to homeowners who don't have the time luxury to fully investigate all technologies on offer, and keep abreast of the latest regulatory and rebate developments. Here, homeowners are urged to consult with industry experts to ensure their water-heater of choice delivers both environmental and operating efficiencies, along with installation and maintenance flexibility-now and into the future.

Company background
The Stiebel Eltron group is a global designer and manufacturer of innovative water heating, ventilation, air-conditioning and refrigeration systems technology, headquartered in Holzminden, Germany. Its broad spectrum of solutions includes instantaneous electric water heaters, heat pumps, space heaters and water filtration systems-all designed to combine safety, convenience and low energy consumption.

The Australian division of Stiebel Eltron is headquartered in Melbourne, supported by a network of offices in Sydney, Brisbane and Adelaide, along with distributors in Perth, Hobart and Auckland, NZ. All offices are equipped with comprehensive sales, service and technical support teams. The company's customer base includes large-scale developers, smaller entrepreneurial enterprises, as well as homeowners across Australia. Stiebel Eltron Australia's core product focus is on instantaneous electric water heaters, point-of-use hot water and filtration systems, and heat pumps for commercial and residential sectors.

Web site: www.stiebel.com.au