The Federal Government's announcement last week of an increase in solar hot water rebates to $1600 and the removal of the means test has led to a massive surge in inquiries for solar hot water systems in city and country areas, leading to a surge in demand for skilled tradesmen and labourers.

The solar hot water industry estimates that more than 50 per cent of Australia's 8 million homes are eligible for either the $1,600 Federal Solar Hot Water Rebate or Insulation Rebate.

It also estimates that 2.7 million homes are uninsulated, while a further 1.4 million homes have traditional electric storage systems eligible to be replaced with environmentally friendly solar water heaters.

In NSW, for example, where additional rebates also apply for the replacement of conventional electric systems with environmentally friendly hot water systems, the purchase could very well be free for most homeowners.

Requiring triple the labour time to install relative to conventional electric water heaters, the solar hot water industry is urgently seeking workers to fulfil the demand - including qualified plumbers and electricians, factory jobs in the solar industry and associated component suppliers.

Environmentally friendly hot water systems, like the 2008 Australian Design Mark awarded Airoheat® heat pump water heater, easily replaces a standard storage electric system, whilst at the same time saving around 70 per cent of a homeowner's hot water energy costs. Each system reduces greenhouse gas emissions by several tonnes per year.

If all 4 million eligible homes installed an environmentally friendly hot water system, Australia's greenhouse gas emissions would be reduced by around 12 million tonnes per year.