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Energy Efficiency Council releases Roadmap for Heat Pump Hot Water Systems

05/08/2024

(Sydney, 5 August 2024). The German-Australian Chamber of Industry and Commerce (AHK Australien) recognises the tremendous work of the Energy Efficiency Council (EEC) and their work on the newly published Roadmap for heat pump hot water systems. With members like Stiebel Eltron and Viessmann in the membership base, the topic of heat pumps has been in the German-Australian Chamber of Industry and Commerce’s interest to move forward in Australia. The roadmap includes a revision of Australian standards, especially highlighting the lack of Minimum Energy Performance Standards (MEPS), the requirement of training and upskilling of the workforce, building consumer trust and having sustainability in mind. The implementation of the roadmap will continue to take time, but AHK Australien is delighted that a great first step is done to improve and strengthen the industry.

To gain more insights into the industry and the roadmap, AHK Australien was able to sit down with Glenn Day, Head of Public Affairs & Engagement of Stiebel Eltron.

  • Why was a hot water system heat pump roadmap required & what does the heat pump roadmap recommend?

Heat Pump Hot Water Systems (HPHWS) have been identified as a critical technology for electrification and emissions reduction. To help provide Australians with access to clean, healthy hot water at low cost. Whilst Governments have offered incentives via energy saving certificates and rebates, there has been many boom & bust cycles over nearly 20 years. These cycles created many concerns, manufacture investment uncertainty, lack of consumer awareness, lack and no movement in minimum energy performance standards, no continual update of Australian Standards, confusion for consumers, no consistent policy and no investment in skilled professionals for installation and servicing. Given these concerns, a roadmap was required, and thankfully a project to deliver one was funded by the Victorian and New South Wales Governments. The HPHWS Roadmap Industry Steering Group (ISG) was developed and facilitated by the Energy Efficiency Council (EEC). The EEC authored the roadmap and underlying report in very close consultation with the ISG, many of whom signed the final roadmap.

The roadmap sets out recommended actions across five key areas to support successful scale-up of the HPHWS market as identified by a diverse-cross section of industry players.

  • Building consumer confidence.
  • Ensuring the quality of the Australian HPHWS industry.
  • Unlocking a trusted and highly skilled workforce.
  • Empowering Australians to access the benefits of HPHWS.
  • Creating a sustainable industry.

Beneath these five key areas are 17 recommendations, some industry led, some government led, and some a collaboration between industry and government. They cover such topics as standards, supply chains, end of life stewardship, vulnerable and low income households, and training of all trades involved with installation & service of HPHWS.

  • What lessons were you able to be provided from Germany or other European countries ?

Germany and the EU are a more mature market than Australia, with many of the recommendations implemented for many years, even decades, with continual development and updating of requirements in these markets. Having the knowledge from the European Heat Pump Association, Keymark, German Heat Pump Association, Swiss Heat Pump Association and UK market helped with awareness of what had succeeded. We can confidently state the Australian HPHWS roadmap recommended actions algin with what has occurred in the EU.

June 2021 was the release of a document titled Further, Faster, Together – Opportunities for collaboration between Germany and Australia on energy efficiency in buildings. One of the recommendations from this document was: Commission research and facilitate dialogue on unlocking the potential of heat pumps. A document that was helpful in achieving the current outcomes.

  • How long did it take to compile, and who else was involved?

The roadmap took approximately 12 months to compile. With expert one on one interviews and approximately bimonthly ISG meetings. The ISG consisted of 29 organisations including manufactures, Accredited Certificate Providers (ACPs), financiers, importers, industry and trade associations.

  • What are the next steps?

Development of an Industry Consultative Group (ICG), which will be made up of industry associations, professional associations, union bodies, other NGOs where relevant, Government interested in collaborating with industry, training and educational bodies. The ICG will monitor roadmap progress and create opportunities for governments to implement recommended actions. One of the recommendations is that government should fund a HPHWS roadmap for commercial and residential strata buildings. I believe this needs to be created ASAP due to the uptake of these products with the same concerns, but on a larger scale than HPHWS. The other heat pump categories that require addressing are air and ground sourced heat pumps that can provide all or serval of these modes, heating, hot water, cooling and ventilation.

The Roadmap and Report can be found via EEC’s website.