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Renovation Cost-beneﬁt Analysis Report
Technical Report · August 2014
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ENERGY
PARTNERS
A Division of Exemplary Investments Pty Ltd

ACN 111 635 931
ABN 83 111 635 931
Renovation Cost-Benefit Analysis
Report Prepared By
Energy Partners
July 2014
Master Builders Centre, 1 Iron Knob Street (PO Box 1211), Fyshwick ACT 2609, Australia
Phone: (02) 6175 5915, Fax: (02) 6249 8374
Email: Energy.Partners@exemplary.com.au, Web: www.exemplary.com.au
Energy Partners Renovation Cost-Benefit Analysis 02 6175 5915
1 TABLE OF CONTENTS
1. EXECUTIVE SUMMARY ............................................................................... 6
1.1 Energy Efficiency Measures:....................................................................................... 6
1.1.1 Ceiling .................................................................................................................. 6
1.1.2 Roof ...................................................................................................................... 7
1.1.3 External Wall........................................................................................................ 7
1.1.4 Subfloor ................................................................................................................ 7
1.1.5 Glazing ................................................................................................................. 7
1.1.6 Draught Proofing .................................................................................................. 8
1.1.7 Lighting Type ....................................................................................................... 8
1.1.8 All Energy Efficiency Measures Applied (All Measures Best Practice) ............. 8
1.2 Heating & Cooling Systems ........................................................................................ 9
1.3 Peak Load Analysis ..................................................................................................... 9
1.4 Comfort Analysis ......................................................................................................... 9
1.5 Health Analysis.......................................................................................................... 10
1.6 Hot Water Heating ..................................................................................................... 10
1.7 Solar PV ..................................................................................................................... 11
2. INTRODUCTION .......................................................................................... 12
2 METHODOLOGY......................................................................................... 14
2.1 Base Renovation Models ........................................................................................... 14
2.2 Usage profiles ............................................................................................................ 15
2.2.1 Away During the Day ........................................................................................ 16
2.2.2 Someone Always at Home ................................................................................. 16
2.3 Climate Zones ............................................................................................................ 16
2.4 Orientation ................................................................................................................. 17
2.5 Energy Efficiency Measures ...................................................................................... 17
2.6 Measurement ............................................................................................................. 18
2.7 Energy Use ................................................................................................................ 18
2.8 Peak Load Analysis ................................................................................................... 18
2.9 Ductwork Efficiency.................................................................................................. 19
2.10 Comfort Analysis ................................................................................................... 20
2.11 Health Analysis ...................................................................................................... 20
July 2014 Page 2 of 99

2.12 Financial Savings ................................................................................................... 20

2.12.1 Building Fabric Improvements and Lighting Cost ............................................. 20
2.12.2 Heating Systems Cost......................................................................................... 21
2.12.3 Cost Savings Per Annum.................................................................................... 24
2.13 Metered Energy Analysis ....................................................................................... 25
2.14 RatingOptimizer ..................................................................................................... 26
2.15 Quality Assurance .................................................................................................. 26
2.16 Energy Costs .......................................................................................................... 27
2.16.1 Seasonal Savings of Gas .................................................................................... 27
2.17 Solar Hot Water System......................................................................................... 28
2.17.1 Gas Consumed By a Solar Hot Water System ................................................... 29
2.17.2 Performance in Northern Victorian compared to Southern Victoria ................. 29
2.17.3 6-Star Gas Instantaneous Water Heater Consumption....................................... 30
2.17.4 Cost of Solar Water Heaters ............................................................................... 30
2.17.5 Cost of Gas Water Heaters ................................................................................. 31
2.17.6 Operating Life of Water Heaters ........................................................................ 31
2.17.7 Calculation of Annualised Cost.......................................................................... 32
2.17.8 Discount Rate ..................................................................................................... 32
2.17.9 Cost of Energy Saved ......................................................................................... 32
2.18 Performance of Solar Photovoltaic Systems .......................................................... 33
2.18.1 Electricity Consumption ..................................................................................... 33
2.18.2 System Size ........................................................................................................ 33
2.18.3 Performance Calculation .................................................................................... 34
2.18.4 Electricity Used On Site and Exported .............................................................. 34
2.18.5 Cost of PV System ............................................................................................. 35
2.18.7 Annualised Costs/Benefits ................................................................................. 36
2.18.8 PV Output and Cooling Peak Load .................................................................... 36
3 RESULTS .................................................................................................... 37
3.1 Baseline ..................................................................................................................... 37
3.2 All Measures Best Practice ........................................................................................ 38
3.3 Lighting ..................................................................................................................... 39
3.4 Heating Systems ........................................................................................................ 40

3.5 Hot Water Systems .................................................................................................... 41

3.5.1 Annualised costs ................................................................................................. 42
3.5.2 Summary ............................................................................................................ 44
3.6 Solar PV Systems ...................................................................................................... 45
3.6.1 PV Generation across Victoria ........................................................................... 46
3.6.2 Cost of Energy Produced.................................................................................... 46
3.6.4 PV Output and Cooling Peak Load .................................................................... 47
3.6.5 Summary ............................................................................................................ 48
3.7 Building Fabric Improvements .................................................................................. 49
3.8 Peak Load Analysis ................................................................................................... 51
3.9 Comfort Analysis ....................................................................................................... 53
3.10 Health Analysis ...................................................................................................... 55
4 INTERPRETATION ...................................................................................... 56
4.1 General....................................................................................................................... 56
4.2 Spreadsheets in a Workbook ..................................................................................... 57
5 CONCLUSIONS AND RECOMMENDATIONS............................................ 59

5.1 Heat pumps and solar electric water heaters ............................................................. 59
5.2 Recommended Further Work .................................................................................... 60
6 ACKNOWLEDGEMENTS ............................................................................ 63
7 APPENDICES .............................................................................................. 64
7.1 Four Typologies ......................................................................................................... 64
7.1.1 Weatherboard cottage 1900s – 1940s................................................................. 64
7.1.2 Inter-war house 1920s – 1940s........................................................................... 64
7.1.3 Double fronted brick veneer 1960s – 1970s....................................................... 65
7.1.4 Estate style 1980s – 1990s ................................................................................. 65
7.2 Definition of Baseline versions ................................................................................. 66
7.3 Definition Best Practice versions .............................................................................. 67
7.4 Usage Profile ............................................................................................................. 69
7.5 List of Indicative Simulations for Steady State Peak Heating and Cooling .............. 72
7.6 Solar Hot Water System analysis .............................................................................. 73
7.6.1 Gas Consumed By a Solar Hot Water System ................................................... 74

7.6.2 Performance in Northern Victorian compared to Southern Victoria ................. 76

7.6.3 6-Star Gas Instantaneous Water Heater Consumption....................................... 76
7.6.4 Cost of Solar Water Heaters ............................................................................... 76
7.6.5 Cost of Gas Water Heaters ................................................................................. 77
7.6.6 Operating Life of Water Heaters ........................................................................ 77
7.6.7 Energy Costs ...................................................................................................... 78
7.6.8 Seasonal Savings of Gas .................................................................................... 79
7.6.9 Annualised Cost ................................................................................................. 79
7.6.10 Discount Rate ..................................................................................................... 81
7.6.12 Results Table ...................................................................................................... 83
7.6.13 Summary ............................................................................................................ 84
7.7 Performance Analysis of Solar Photovoltaic Systems .............................................. 85
7.7.1 Electricity Consumption ..................................................................................... 85
7.7.2 System Size ........................................................................................................ 86
7.7.3 Performance Calculation .................................................................................... 86
7.7.4 Electricity Produced ........................................................................................... 87
7.7.5 Electricity Used On Site and Exported .............................................................. 88
7.7.6 Non-North Orientation ....................................................................................... 89
7.7.7 Cost of PV System ............................................................................................. 90
7.7.8 Cost of Energy Produced.................................................................................... 90
7.7.10 Results Table ...................................................................................................... 92
7.7.11 Summary ............................................................................................................ 93
8 NOTES ......................................................................................................... 94

1. Executive Summary
This report provides an analysis and evaluation of the impacts on energy, cost, health and
comfort benefits when 11 selected energy efficiency measures, which are of superior level
than the National Construction Code (NCC) minimum requirements, are applied to typical
house renovation projects in Victoria. Also the benefits from upgrading the heating/cooling
appliances, solar hot water and solar PV systems are evaluated. The NatHERS accredited
software AccuRate is used in this project for evaluating improvements to the construction of
the houses.
This simulation analysis was done for:
 4 house typologies – Pre-War, Inter-War, Double Fronted BV and Estate

 4 orientations – backyard facing N, S, E and W
 3 climates - Mildura CZ4, Melbourne CZ6, Ballarat CZ7
 2 occupancy patterns - Away during the day, Someone always home
 2 heating and cooling scopes - ducted central and space heating only
 2 heater and cooler efficiency levels - 3 star and 5 star
The results of almost 100,000 simulations are incorporated in an extensive smart Excel
Workbook which forms the basis of the planned interactive website to allow renovation
planners and customers to compare the options they have. The payback periods are all
calculated by comparing the capital costs and energy savings of the energy efficiency
measures relative to their NCC compliant alternative. As directed, in this report only the cost-
benefit of upgrading the heating system is analysed as almost all Victorian houses have some
type of heating system, not all of them have cooling appliances used in the house.
For this summary, selected results are reported below for their being indicative of common
trends. For consistency, all the results are for the average of all house types and orientations in
the Melbourne climate with:
 occupancy pattern - Someone always home;

 heating and cooling scopes - ducted central; and
 heater and cooler efficiency levels - 3 star.
Here, for clarity of expression of its impact, each of the energy efficiency measures is applied
to the otherwise Baseline (NCC-compliant) version. Where some other result is seen as
worthy of citation, the associated details are explicitly stated.
1.1 Energy Efficiency Measures:
1.1.1 Ceiling
The NCC compliant ceiling insulation is R3.5 in the extension. R1.0 insulation is assumed to
have been already installed on the existing ceiling. The best practice ceiling insulation is R5.0
throughout the whole house. It would be unnecessary to remove the already-existing R1.0
ceiling insulation in the existing part during the renovation. The existing ceiling is

accordingly topped up to have a total of R6.0 insulation. The average payback in CZ6 is about
4 years.
1.1.2 Roof
Roof insulation is not required to comply with the NCC. The best practice roof insulation is
foil under R1.0 bulk insulation installed immediately beneath the roofing material. Cognisant
of the impracticality of retro-fitting it, this is applied to the extension part only.
On average the total cost of installation is the lowest but it is the least cost effective energy
efficiency measure. The average payback period is over 50 years (although its obvious
summer advantage is ignored in this study).
1.1.3 External Wall
The NCC compliant external wall insulation is R1.5 except the garage walls. Existing walls
are assumed to be uninsulated. The best practice version is to use R2.5 bulk wall insulation
with reflective foil in the extension and R2.5 bulk or cavity fill insulation in the existing
walls.
It is the most cost-effective of the energy efficiency measures. It has the greatest cost savings
per annum amongst the individual energy efficiency measures (i.e. excluding the scenario
where all energy efficiency measures are applied). The average payback period in CZ6 is 3.6
years. However the Inter-War typology has an average payback period of about 8 years due to
the more expensive process of installing cavity fill wall insulation to the existing double brick
walls for the modest added R1.0 insulation.
1.1.4 Subfloor
There are two main floor construction types used in the four typologies. The Pre-War, Inter-
War and the Double Fronted Brick Veneer typologies have enclosed suspended platform
timber floors. The Estate house has concrete slab on ground (CSOG) floor construction. The
NCC compliant platform floor insulation is R1.5 and Nil for the CSOG. Various floor
coverings are used according to the purpose of each room. For the best practice floor
insulation, the platform timber floors have R2.5 insulation. For the CSOG, R1.0 waffle pod
slab is used as the improved insulation. Floor coverings remain unchanged.
It is a cost effective energy measure which has the third lowest average payback period. The
average payback period for the insulation of the timber platform floors is about 2.6 years and
the CSOG is under 9 years.
1.1.5 Glazing
NCC2013 volume 2 glazing calculator was used to determine the NCC compliant and partial
compliance for glazing sizes. All the baseline house models use standard aluminium frame
with single glazing as the fenestration wherever partial compliance was acceptable. There are,
however, some cases in which clear double glazing in standard aluminium frames were used
to achieve an initial “pass”.

Low-E Clear Glazing
This system returns the lowest average cost saving per annum and an average payback period
of over 100 years which is the highest amongst all the individually applied energy efficiency
measures scenarios, including the all measures best practice scenario.
Double Glaze with 12mm Air
This system provides an average payback period of over 75 years which is the second highest.
Double Glaze with Low-E 12mm Argon in Extension Only
This system provides an average payback period of 44 years
Double Glaze with Low-E 12mm Argon in Existing and Extension
This is the most expensive single energy efficiency measure (i.e. excluding the all measures
best practice scenario). The average payback period is 184 years, which is the highest,
amongst all the individually applied energy efficiency measures scenarios and including the
all measures best practice scenario
Double Glaze with Low-E 12mm Argon in Existing and Extension
This is the most expensive single energy efficiency measure (i.e. excluding the all measures
best practice scenario). The payback period is the lowest amongst all the glazing options used
in this study. The average payback period is 33 years.
1.1.6 Draught Proofing
This includes the installation of draught proofing around doors and windows, skirting boards
and above fans or fireplaces. Only the extension part of the renovation needs to be air sealed
to comply with the NCC. The best practice scenarios apply the above draught proofing
measures to both the existing rooms and extension. The average payback period is about 4
years.
1.1.7 Lighting Type
Vented downlights are acceptable but the modelling has to be compliant with the NCC to
allow the correct recognition of the infiltration. In the baseline extension there is one vented
downlight per 7m². For the best practice scenario, there are no vented downlights. Both
existing and extension light fittings are surface mounted LED.
The average payback period is about 7 years. Additionally, the average cost is the second
lowest.
1.1.8 All Energy Efficiency Measures Applied (All Measures Best Practice)
This scenario is equipped with all 7 improvements from above and the highest performing of
the fenestration improvements, the generic double glazed low-e argon-filled in improved
aluminium frames, is modelled in both the existing and extension windows.

As expected the average heating and cooling energy demand is the lowest and thus the
average cost saving per annum of $3,766 is the highest. The average payback period is about
9 years.
1.2 Heating & Cooling Systems
The baseline scenario uses 3 stars ducted gas heating with add-on cooling systems. Ducts and
fittings (boots, spigots, etc.) insulation is NCC compliant at R1.0. The best practice scenario
upgrades the 3 stars systems to 5 stars and the ducts insulation to foil-sleeved R1.5. The
additional average cost for this upgrade is about $1,000 and the payback period is under about
1 year.
1.3 Peak Load Analysis
The hourly energy demands from the AccuRate simulations are converted to energy
consumptions to establish the impact on appliance size and demand on the electricity grid and
gas supply (metered energy). A total of 96 simulations consisting of 48 Baselines and 48 All
Measures Best Practice were chosen for this analysis. Below is a summary of the results
indicating that the Peak Load is reduced by a similar fraction to the annual energy:
Steady State Total Metered Total Metered

Peak Steady State Peak Energy Energy
Gas Heating Electrical Cooling Heating Cooling
(MJ/h) (kW) (MJ/yr) (kWh/yr)
Baseline 60 3 80,381 456
All Measures Best Practice 11 1 14,063 136
Difference -82% -71% -83% -70%
Table 1 – Peak load analysis summary for CZ6
1.4 Comfort Analysis
This is a measurement (in Degree.Hours per year) of the capacity of the building envelope to
maintain a comfort range between18°C and 23°C when no heating or cooling is operated to
condition the house. The same set of 96 simulations used in the peak load analysis is
simulated with no heating and cooling applied. Daytime zones and night-time zones are
analysed separately to provide more detailed results.
A higher Degree.Hours means the house is less efficacious in maintaining the internal
temperature within the comfort range without heating or cooling. Table 2 provides a summary
of the results. The greater -ve % values indicate that the all measures best practice is superior
to the baseline.
This method allowed for the maximum and minimum indoor temperatures to be determined.
The average differences between the baseline and the all measures best practice are
summarised in Table 3:
The all measures best practice has a lower maximum (cooler) and higher minimum (warmer)
indoor temperature when the house is not conditioned.

Average Degree.Hours
Daytime Daytime Night-Time Night-Time
Cooling Heating Cooling Heating
Baseline 2,307 21,293 2,763 22,089
All Measures Best Practice 2,034 10,163 2,326 10,607
Difference -12% -52% -16% -52%
Table 2 – Average Degree.Hours for the comfort analysis in CZ6
Average indoor temperature (°C)

Daytime Daytime Night-time Night-time
Max. Min. Max. Min.
Baseline 35.3 6.7 36.1 6.1
All Measures Best Practice 34.2 10.3 34.2 10.0
Difference -1.1 3.6 -1.8 4.0
Table 3 – Average maximum and minimum indoor temperatures from the comfort analysis in CZ6
1.5 Health Analysis
Similar to the comfort analysis, this method measures the hours per year when the internal
temperature exceeded a much wider tolerable (healthy) range from 13°C to 30°C. Below is a
summary of the average Degree.Hours. . The table below provides a summary of the average
degree heating and cooling hours.
Average Degree.Hours
Night- Night-
Daytime Daytime Time Time
Cooling Heating Cooling Heating
Baseline 130 3,489 184 3,920
All Measures Best Practice 84 541 92 557
Difference (%) -35% -84% -50% -86%
Table 4 – Average degree.hours for the health analysis in CZ6
1.6 Hot Water Heating
An analysis of water heating options has been undertaken. This compared the financial
benefits of solar and high efficiency gas water heaters with a standard efficiency gas water
heater that is the likely default product installed.
The money a householder needs to invest to save a MJ of gas is equivalent to, or less than, the
current cost of gas for both a gas boosted solar water heater and a six star instantaneous gas
water heater when compared to a four star gas water heater. These options are always less
expensive in homes where there are three or more occupants.

Cost of energy saved $/MJ

Comparison of water heating with the four star gas storage water heater
Occupants
1 2 3 4 5 6 7 8
Regional-South 0.015 0.013 0.012 0.011 0.010 0.010 0.009 0.009
Solar with 0.013 0.012 0.010 0.009 0.009 0.008 0.008 0.008
Regional-North
Gas
Metro 0.015 0.013 0.012 0.011 0.010 0.010 0.009 0.009
Boosting
Mildura 0.013 0.012 0.010 0.009 0.009 0.008 0.008 0.008
6 Star Instantaneous Gas 0.007 0.007 0.007 0.007 0.006 0.006 0.006 0.006
Table 5 Cost of energy saved $/MJ compared to four star gas storage water heaters
Based on annualised costs, gas boosted solar water heaters are always the most cost effective
option.
1.7 Solar PV
The option to install a solar electricity system, a photovoltaic (PV) system at the time of
renovation has been investigated to understand the financial opportunity that arises.
With current electricity tariffs and feed in tariffs the most cost effective option is to size a PV
system so that most of the electricity it produces is used on site.
A 1.5 kW system will save the household $200 to $480 annually over its operating life
including paying for the purchase and installation price. Annualised Savings are given in
Table 6Table 24:
Occupants 1 2 3 4 5 6 7 8
Load kWh/yr 3886 4808 5691 6613 7526 8440 9355 10253
Tullamarine $207 $237 $263 $287 $ 309 $328 $344 $358
Annualised Ballarat $ 243 $278 $308 $335 $360 $381 $399 $413
$/year
Mildura $ 275 $314 $349 $383 $414 $442 $466 $ 486
Melbourne $ 180 $207 $230 $252 $272 $288 $303 $314
Table 6 - Annualised savings by location and Household size/load
The money a householder needs to invest to save a kWh of electricity is significantly less than
the current cost of electricity: 6-9 c/kWh compared to 27-30 c/kWh to purchase electricity
from the grid.

2. Introduction
The client for this project is Sustainability Victoria.
The aim of this work was to develop heating and cooling data for a range of renovation case
studies of four (4) typical Victorian house styles, using Nationwide House Energy Rating
Scheme (NatHERS) accredited software to undertake thermal modelling for each house style
in a number of different climate zones. The data from the thermal modelling is combined with
data on heating and cooling system type and efficiency, to estimate the energy savings from
upgrading the building shell and heating/cooling equipment. Additionally, modelling of
different lighting and water heating options, as well as other solar options (e.g. solar PV
panels and solar water heating) was undertaken to assess the potential costs and benefits of
these upgrades in three (3) indicative Victorian climates.
This data has formed the technical measurement of energy, cost, health and comfort benefits
that can be achieved by going beyond minimum National Construction Code (NCC)
requirements and implementing best practice energy efficiency measures. These energy, cost,
health and comfort benefits will be used in the development of a customisable online tool for
Victorian home renovators.
The typical renovations modelled in this study capture key design features and enhancements
that are common in renovations. The Victorian Building Commission’s recent work to
characterise the renovation market in Victoria from 2009 to 2011 provides some guidelines
for typical improvements:
 The majority of home renovations involved demolishing rear kitchen, laundry,

bathroom areas and their replacement with a large new open plan combined
kitchen/living/dining area and new laundry and bathroom/WC areas. These new open
plan kitchen/living areas opened onto new decks and other outdoor living spaces.
 The main trends in refurbishment of existing floor areas included; adding robes in
existing bedrooms, refurbishing bathrooms, creating ensuites, converting existing
kitchen areas into bathrooms/laundries, converting bedrooms into lounge/rumpus areas
and creating open plan kitchen/living/dining areas by breaking down internal walls.
Common trends in first floor additions included addition of bedrooms and bathrooms.
The most common construction types in new additions were mainly:
 Wall construction was mainly weatherboard or brick veneer. External foam board
cladding was prevalent in upper floor additions.
 Floor constructions were mainly timber platform floors on concrete stumps or concrete
slab on ground.
 Roofing materials were predominantly formed sheet-metal or concrete/clay tiles.
 Generally, the construction materials of the new additions were selected to maintain a
visual similarity with the existing parts of the home.

The energy efficiency measures modelled in this study were finalised in consultation with
Sustainability Victoria at the contract inception meeting with some subsequent refinement to
that (see Table 30 and Table 31).

2 Methodology
2.1 Base Renovation Models
The team accessed designs and drawings for four (4) renovation case studies prepared by
Sustainability Victoria, with input from the Archicentre enterprise of the Australian Institute
of Architects. The case study houses were chosen based on construction typologies that
contain common Victorian building elements and have the greatest impact to improve the
existing housing stock (based on ABS data), as described in the table below.
The base renovation models contain typical house plans and room sizes of the era plus a
typical renovation for that style of house. The thermal modelling for these house plans was
undertaken by Energy Partners using NatHERS software. The heating and cooling outputs
from the NatHERS thermal modelling provided the baseline data for measuring the impact of
the ten (10) selected energy efficiency improvements, (see Appendix Definition Best Practice
versions).
The renovations were modelled to meet minimum standards according to the NCC 2013 to
form the Baseline data (see Appendix Section 7.2 for details) and for comparison with the
Best Practice alternatives.
Construction Typical
Case studies Typology Age range
elements renovation
Weatherboard Timber framed walls,

Lightweight Internal
cottage timber framed floors
1 construction, 1900s - 1940s alterations, rear
on stumps, timber
timber floors (Pre-War) extension
windows, tiled roof
Double brick walls,

Heavy weight Inter-war house Internal
timber windows.
2 construction, 1920s – 1940s alterations, upper
(Inter-War) Timber framed floor
timber floors and rear extension
on stumps, tiled roof
Double fronted Brick veneer walls,

Middleweight Internal
brick veneer timber framed floor,
3 construction, 1960s – 1970s alterations, rear
metal framed
timber floors (DFBV) extension
windows, tiled roof
Middleweight Brick veneer walls,

Estate style Internal
construction, concrete slab on
4 1980s – 1990s alterations, upper
concrete slab (Estate) ground, aluminium
and rear extension
floors windows, metal roof
Table 7 – Case Studies of typical renovations - their typology, age range and construction

Conditioned Floor Area (m²)

Total Floor Existing Floor Extension Floor
Area (m²) Total Floor Area Area Area
Pre-War 206 192 136 56
Inter-War 180 156 92 64
DFBV 176 152 108 44
Estate 184 162 107 55
Table 8 – Gross floor areas of the 4 typologies modelled in this study
2.2 Usage profiles
The NatHERS software applies a standard usage profile for the heating and cooling systems
when calculating the thermal loads within the houses. For living spaces, thermal comfort is
maintained from 7 am to midnight. For sleeping spaces, thermal comfort is maintained from 4
pm to 9 am the following morning. The software makes no provision for Daylight Saving so
all times are Standard Times, including the occupancy patterns and the internal loads
associated with them.
For the heating thermostat, the following rules are applied to all the house models:
 For living spaces (including kitchens and other spaces typically used during waking
hours): a heating thermostat setting of 20°C is applied.
 For sleeping spaces (including bedrooms and other spaces closely associated with
bedrooms): a heating thermostat setting of 18°C is used from 7 am to 9 am and from 4
pm to midnight; and a heating setting of 15° C from midnight to 7 am the following
morning.
For the cooling thermostat, different settings are applied to different climate zones in
recognition of acclimatisation. In NatHERS software tools there are 69 climate zones (which
are subdivisions of the 8 NCC climate zones). Table 9 lists the 3 selected climate zones and
their corresponding cooling thermostat settings.
NCC NatHERS
Climate Zone Climate Zone Cooling Thermostat Settings
Mildura 4 27 25.0
Tullamarine 6 60 24.0
Ballarat 7 66 23.5
Table 9 – Cooling thermostat settings for each selected NatHERS climate zone
Rather than using the NatHERS assumed profiles, this study explores 2 different usage
profiles based on more typical usage patterns for residential heating and cooling systems, as
this allows a more accurate estimate of the likely actual heating and cooling loads. Two
general profiles were used:
1. Away during the day; and,

2. Someone always at home.

Appendix Section 7.4 shows the usage profile example of the Double fronted brick veneer
typology in CZ6 which compares the standard NatHERS settings for living, living/kitchen and
bedroom with both the “Away during the day” and “Someone always at home” profiles
modelled in this study.
2.2.1 Away During the Day

It is assumed that there are no occupants in the house from 9 am to 6 pm.
For Living and Bedroom zones, both sensible and latent internal heat loads from 9am to 6pm
are set to 0. Similarly the cooling and heating thermostats for hours from 9am to 6pm are set
to “off” (thermostat set to 0 in a scratch file means that at those hours the zone is not
conditioned).
In general, on cold mornings people will turn the heating on, however on hot mornings the
cooling is not turned on. The heating thermostats from 7am to 9am are set to be “on” while
the cooling thermostat is set to be “off”.
For Kitchen & Family zones, internal sensible heat load is set to the background value of
100W. This value represents consumptions from appliances which are always “on” (e.g.
fridge). Internal latent heat load is 0 and the thermostats are set to “off” from 9am to 6pm.
For other living zones, there are no internal heat loads as in the NatHERS standard. The
thermostat settings are the same as above.
2.2.2 Someone Always at Home

The NatHERS standard schedule assumes the Living, Kitchen, Family and other living areas
are always occupied, even when not conditioned. No modification is made neither to the
internal heat loads nor the thermostat settings.
For Bedrooms, the NatHERS standard schedule assumes no occupant in the bedrooms during
the day. To represent a full day occupancy pattern, both the sensible and latent internal heat
loads during the daytime hours are assumed to be the same as the evening hours in the
NatHERS standard schedule. For the thermostat settings, both heating and cooling thermostats
at 8 am and 9 am in the NatHERS standard schedule are extended to the rest of the day to
represent a full day occupancy pattern. The thermostats in these 2 hours are higher than the
hours before 7 am. This assumes the occupants are awake and having normal “household
activity” in the house.
2.3 Climate Zones
The NatHERS modelling was undertaken for the 4 house styles modelled using three
Victorian climate zones that are representative of hot, mild and cold climates:
1. Hot: Mildura – NatHERS No. 27 - indicative of NNC CZ 4

2. Mild: Tullamarine (Melbourne) - NatHERS No. 60 - indicative of NNC CZ 6
3. Cold: Ballarat – NatHERS No. 66 - indicative of NNC CZ 7

2.4 Orientation
The NatHERS modelling assessed the effect of orientation on the heating and cooling loads of
the 4 house styles modelled. Modelling was undertaken over the four cardinal orientations:
north, south, east and west facing rear yards.
2.5 Energy Efficiency Measures
A range of energy efficiency measures were modelled to measure their impact against the
minimum energy efficiency requirements as prescribed in the NCC 2013 or MEPS and can be
categorised into:
1. Building fabric improvements;

i. Insulation (ceiling, walls and floors to best practice standards)
ii. Glazing (including orientation and shading)
iii. Full draught proofing measures
2. Lighting – use of downlights (QH and LED) compared to minimal use of downlights
3. Heating & Cooling
4. Hot water systems
5. Photovoltaic (Solar PV) systems to generate electricity on-site
See Appendix Section 7.2 and 7.3 for full list of energy efficiency measures applied to the
Baseline and Best Practice models.
The analysis assesses building fabric energy efficiency improvements 1) and 2) individually
and simulates them in NatHERS software. The heating and cooling load outputs are inserted
into a spreadsheet tool developed for this project.
Once the thermal simulations were completed the benefits of upgrading 3) heating & cooling
and 4) hot water systems, as well as 5) solar systems were analysed.
The modelling demonstrates the effects of two types of heating systems:
1. Space heating, i.e. heating the main living areas only; and
2. Central heating, i.e. heating both the living and bedroom areas.
The effects of zoning the heating systems is measured in the best-practice renovation models,
by selected sample versions being modelled in both modes with both occupancy profiles. The
proportionalities inferred from that work is applied to the other results as estimation factors
for that house type. This aspect is particularly relevant between the ground floor and any
upper floor of the house, but all examples in this project are single storey.
The analysis also assesses and quantifies the benefits of the following upgrades:
3. Ducted gas heating system

4. Gas boosted solar hot watera
5. Gas hot water
6. solar PV (photovoltaics) to generate on-site electricity

2.6 Measurement
The results of simulating both 1) building fabric improvements and 2) lighting upgrades were
collected in a spreadsheet tool designed for the project and used for further analysis. The
annual heating and cooling outputs from NatHERS are measured in MJ/m². The out-put
energy values were multiplied by the net conditioned area of the house (m2), to calculate the
total annual heating and cooling load in MJ.
The calculated MJ/m² and its conversion to % improvement allows for customised data to be
drawn upon by the online tool for renovators. The energy efficiency measures are assessed
individually, however when the data is developed by SV into an online tool there are inter-
dependencies between the measures. These possible dependency scenarios and solutions for
estimating the total benefits of multiple measures were to be addressed in the detailed analysis
by interpreting them in their % improvement measures. Instead, the project scope was
expanded to include most combinations of interest directly using highly automated simulation
techniques including just under 100,000 EEM combinations.
2.7 Energy Use
It is important to note that the thermal loads calculated using the NatHERS software are not
the same as the actual heating and cooling energy use of the houses. They are simply the heat
energy input required to maintain the specified thermal comfort conditions during the ‘winter’
months and the heat energy which needs to be extracted from the house to maintain the
specified thermal comfort conditioners during the ‘summer’ months. Metered energy is
subsequently calculated. For details please refer to Section 2.13 Metered Energy Analysis.
The heat load outputs for different types of heating (space/central), cooling and different
heating/cooling usage profiles (all day / away day) was combined with data on typical
heater/cooler performance to estimate the annual energy use.
The hour-by-hour energy results from AccuRate are used to establish the impact on appliance
size and demand on the electricity grid.
A total of 96 simulations consisting of 48 Baselines and 48 All Measures Best Practice

(equipped with all 7 improvements and the highest performing of the fenestration
improvements – Generic DG Low-e argon in improved Aluminium frame to both existing and
extension windows) were chosen for this analysis. Central heating mode and “Someone
always at home” usage profile are used in these simulations.
The heating and cooling energy outputs from the AccuRate simulations are energy demands
rather than energy consumptions. To calculate the energy consumptions the following heating
and cooling systems are used:

 Baseline: The ducts and fittings (boots, spigots, etc.) insulation are NCC compliant
(R1.0) with a 3 star gas heater. The efficiency of a 3 starsb gas heater is 60% (at
standard conditions) and the minimum rated EER for a 3 stars cooling system is 3.75.c
 All Measures Best Practice: 5 stars heater (90% efficiency) and 5 stars cooling
(minimum rated EER of 4.75) with foil-sleeved R1.5 ducts zoned.
Both the Baseline and the All Measures Best Practice systems are deemed to have negligible
air leakage in operation such that all detrimental heat flow into and out of the ducts is through
the insulated duct and fitting walls. Older installations could well have some air leakage but
this should be made good during the renovation project if the system is not being replaced.
Quasi Steady State Peaks – During the daily start up hours the conditioned spaces could
begin at an extremely high or low temperature. The peak loads of these hours are not suitable
to be used for sizing the air-conditioning system or estimating its impact on the electricity and
gas distribution gridsd. Instead, the steady state peaks, which are calculated by Exemplary
NatHERS Analyzer, excluding the start-up hours, are used for sizing the heating and air-
conditioning systems. Hours excluded in the peak load calculation for the “Away during the
day” occupancy are the hours ending at 8 am and 5 pm. These are the first after start up hours
for heating on a cold morning and cooling during/after a hot afternoon and may be
misleadingly large, especially in the case of heavyweight constructions. For the “Always
home” occupancy, the hours which needed to be excluded in the calculations are different.
Only the hours ending at 8 am will be excluded in the calculation because the house is
conditioned continuously and does not have a start-up hour in the afternoon.
Thermostat settings are scheduled in Appendix Section 7.4 for the NatHERS Standard and the
two occupancy patterns used for this project.
With the heat or cool demand and the hour at which they occur identified, the COP of the
heater and/or cooler at the coincident outdoor air temperature is applied to the demand to
calculate the metered energy peak load for the whole year.
2.9 Ductwork Efficiency
A duct plan for the central heater/cooler is schematically designed for each house as extended
to establish a schedule of duct and fitting sizes (diameters) and lengths from which the area of
duct wall facing up, down and sideways can be calculated along with the overall heat
loss/gain coefficient (W/K). Any return air duct was assumed to run inside the conditioned
space with negligible heat losses/gains and is hence ignored in this calculation. For the
Baseline case, it was assumed that new ducts were installed throughout the whole house and
the ductwork insulation complies with the minimum requirement of the NCC 2013e. Table
3.12.5.2 of Section 3.12.5.3 of the NCC 2013 Volume Two states the minimum ductwork
insulation for climate zones 4, 6 and 7 is R1.0 (with a non-foil sleeve) for a heating only
system where the ductwork was assumed to be located in the roof space, above any ceiling
insulation and below any roof level foil or insulation. (The notes to that table allow a
reduction by R0.5 for ducts run in the more moderate environment of under an enclosed

suspended timber floor, but evaluating that option in the Typologies where it might be
applicable is beyond the scope of this project.f)
This is a calculation of the degree.hours per year when the internal thermal comfort range of
18°C to 23°C is not exceeded during and unconditioned mode of operation. This allows
renovators to see the comfort benefits of energy efficiency measures.
The same set of 96 simulations used for the peak load analysis is simulated with no heating
and cooling applied (both thermostats are set to 0 in the scratch file).
Comfort improvements will not apply to all energy efficiency measures (e.g. water heating
and solar PV have no comfort impacts).
2.11 Health Analysis
This is a calculation of the degree.hours per year when the internal thermal conditions remain
within the tolerable range of 13°C – 30°C.
Similar to the comfort analysis, the same set of 96 simulations used for the peak load analysis
is simulated with no heating and cooling applied (both thermostats are set to 0 in the scratch
file).
Each selected simulation generates a file of hourly internal temperatures by room and the
hourly average of these temperatures for the daytime zones and night-time zones are
separately analysed to find the maximum and minimum temperatures incurred, the number of
hours outside the tolerable range and the degree.hours outside the tolerable range are
calculated so that a robust estimate of the health-threatening discomfort can be inferred
2.12 Financial Savings
Financial savings are represented as the dollar savings per annum for each of the best practice
building fabric improvements compared to the Baseline figures, and the resultant payback
periods were calculated using the differential cost.. The financial analysis (e.g. costs vs
savings) is split into (1) building fabric improvements; (2) lighting; (3) heating systems (the
financial savings for upgrading the cooling system are not calculated in this report); and (4)
water heating and (5) solar.
2.12.1 Building Fabric Improvements and Lighting Cost
Table 10 shows the capital costs associated with improving the building fabric. These prices
are for reference only and they varied between locations and time of supply.

Priceg
Included GST &
Installation
R3.5 $15.40 /m²
Ceiling
R5.0 $20.50 /m²
Roof R1.0 + Foil $12.50 /m²
R1.0 (Cavity fill) $37.00 /m²
R1.5 $12.20 /m²
Wall R2.5 (90mm Batts) + Foil $18.30 /m²
R2.5 (90mm Batts) $16.30 /m²
R2.5 (Cavity fill) $37.00 /m²
R1.5 (sub-floors) $17.90 /m²
Floors* R2.5 (sub-floors) $17.90 /m²
R1.0 (CSOG) $17.90 /m²
Doors $101.00 /unit
Windows $102.00 /unit
Draught
Skirting boards $10.20 /m
Proofing
Exhaust fan $67.20 /unit
Fireplace $254.70 /unit
Incandescent Downlights (commonly 12 volts) $5.10 /unit
Lighting
LED (unvented)h $122.00 /unit
SG Standard Aluminium $350.00 /m²
Low-e Standard Aluminium $420.00 /m²
Glazing DG clear (12mm Air) Standard Aluminium $454.00 /m²
DG Low-e (12mm Argon) Standard Aluminium $558.00 /m²
DG Low-e (12mm Argon) Improved Aluminium Frame $687.00 /m²
*The price (materials only) for the two subfloor insulations – R1.5 and R2.5 Glasswool are about the same. The
installation of sub-floor insulation in an existing house involves working in an unpleasant environment (i.e.
crawling under the timber floor) and so the labour costs make the material cost difference appear to be
negligible. The material cost of R1.0 (extruded polystyrene) for CSOG is more expensive than the Glasswool but
the installation involves much less labour–intensive work. The prices including installation for the sub-floor or
the CSOG insulation are about the same.
Table 10 – Building Fabric Improvements Cost
2.12.2 Heating Systems Cost
The heating systems cost are calculated based on the peak loads and the type of system. A
ducted gas heating system is used for the central heating scenario. For the space heating
scenario, the house will be heated by a two-way flued gas wall furnace.
System sizes come in a modest range which varies between manufacturers and over time,
slowly responding to a gradual increase in house size but an increasing energy efficiency of
the building envelope. While the estimated actual cost varies in response to design loads
necessarily in a rough step function, we have developed an equivalent linear function for each
case based on the ranges currently available.

Central Heating
System sizes and their corresponding costs are available from the Rawlinsonsi Handbook.
However the data does not include the appliance’s star rating. The costs are the total price of
provision and installation of ducted heating systems. Also the cooling and heating size
combination does not match any system consistent with our simulation results (see Section
3.8) as the minimum cooling/heating system listed by Rawlinsons is 25 kW.
To find the relationship between star rating, cost and system size, additional information was
provided by the ActewAGL energy shopj and the Gstorek website. Data are plotted in Figure
1. Note that the prices in the figure exclude installation costs.
Figure 1 – Cost, Size and Star Rating of the Ducted Gas Heating System
We have assumed systems in any sizes are available to demonstrate the theoretical cost
differences between using a lower and higher star-rating appliances.
The following two equations are obtained from the above figures and they are used to
estimate the cost of the 3 and 5 Star air conditioning system for the central heating scenario.
Gas Heating:
5 Stars: Cost  GasHeatingPeak (kW )  38.461  1440
3 Stars: Cost  GasHeatingPeak (kW )  31  700

Space Heating
Costs and star rating for the gas space heater are also obtained from Gstore website and are
plotted in Figure 2.
Figure 2 – Cost, Size and Star Rating of the Gas Space Heater
Similar to the ducted gas heating system, we have assumed systems in any sizes are available.
The equations below are used to estimate the cost of the 3 Star and 5 Star air conditioning
systems for the space heating scenario:
Gas Heating:l
5 Stars: Cost  GasHeatingPeak (kW ) 170  500
3 Stars: Cost  GasHeatingPeak (kW ) 130  400

2.12.3 Cost Savings Per Annum
The cost saving per annum is the cost difference between the energy cost of Baseline and Best
Practice approaches (with selected energy efficiency measures applied). As requested by SV,
the cost savings per annum for heating are calculated for the following 2 scenarios:
1 Using 3 Star heating systems.

2 Upgrade the 3 Star systems to 5 Stars.
A 3 Star heating system is always assumed to be used in the Baseline cases.m
Using 3 Star systems:
Both Baseline and Best Practice are using 3 Star systems. Therefore the annual cost saving is
a result of the improvement in building fabric alone.
Upgrade the 3 Stars systems to 5 Starsn:
Same as above but the Best Practice has a 5 Star heating system. The annual cost saving is a
result of the building fabric improvement plus the saving of using a more efficient heating
system.
The energy cost is calculated by multiplying the heating metered energy by the gas/electricity
energy cost. The total metered energy is the energy consumption of the heating systems. It is
calculated by adding up the hourly energy demands and the hourly energy losses/gains in the
ducts.
SavingPerAnnum3Star = (GasHeatEnergyBaseline * GasPrice / 100) - (GasHeatEnergy3Star

* GasPrice / 100)
SavingPerAnnum5Star = (GasHeatEnergyBaseline * GasPrice / 100) - (GasHeatEnergy5Star

* GasPrice / 100)
Ductwork and Installation Cost
During the upgrade of the heating system, the house owner may want to keep the existing duct
system and put new ductwork in the extension only. However some of the existing ducts may
need to be replaced due to leakage and general wear of the old ducts and for the new heating
system to run better with the extra duct length within the extension. We have assumed new
ductwork is needed throughout the whole house for a better estimation of the maximum cost
needed.
The estimated cost for the R1.0 ductwork is $1200 and we assume the same price for the four
typologies. For the R1.5 ductwork it is an extra of $60 per outleto.
The installation cost of the ducted gas system is assumed to be the same regardless of the
system size, $1800. The installation cost (replacing an existing) of the gas space heater is
$200.
Below is the ductwork and installation cost summary for the ducted gas heating system:

Estimated
installation cost Total Installation
Estimated cost for ductwork
for the gas Cost
furnace
3 stars with
$1,800 $1,200 $3,000
R1.0 duct
$1200 + $60 per outlet for the R1.5
ductwork.
Below are the number of outlets and

5 stars with extra cost for the R1.5 ductwork:
$1,800 $3120 - $3300
R1.5 duct  PreWar: 3 = $180
 InterWar: 4 = $240
 DFBV: 5 = $300
 Estate: 2 = $120
2.13 Metered Energy Analysis
NatHERS software estimates the heat energy input (or heat energy required to be removed) to
meet specified thermal comfort conditions in winter and summer – it does not estimate the
actual metered energy consumption for a house as this also depends on the conversion
efficiency of any heating and cooling appliances and also the thermal efficiency of any
ductwork and fittings used with ducted systems. However, these are non-building aspects that
impinge on the energy efficiency of the house as a comfort conditioned system. To evaluate
their significance, the metered energy consumptions are calculated using the Exemplary
NatHERS Analyserp. It estimates the metered energy consumptions of the NatHERS-
calculated heating and cooling demands. Hourly calculations apply temperature-appropriate
efficiencies called Coefficients of Performance (COPs). This is where the “efficiency” of the
heating or cooling system is greater than a unit of one and is indicated by the star-rated
efficiency of the appliances and associated duct heat loss/gains wherever they are located.
Hour-by-hour calculations based on selected output files from the simulations, which record
the hourly loads and temperatures within each room, were undertaken. The peak load from all
of the non-start-up hours for heating and cooling was extracted from the AccuRate results and
later used to calculate duct losses/gains by tallying the loads for all the rooms and expressing
that as a fraction of the peak load. Hence, the temperature for any particular hour inside the
duct is a function of the load during that hour and in the range 20-35°C for heating and 14-
25°C for cooling.
The appliance energy conversion efficiency (or Coefficient Of Performance, COP), varies
subject to outside air temperature for some heating/cooling appliances. This can cause a
Reverse Cycle Air Conditioner (RCAC) or Heat Pump to be more efficient when the outside
air is close to the comfort temperature and the efficiency declines as that temperature moves
toward the extremes. That function, generalised from the values published by ASHRAEq and
scaled to ensure that the Star-rated COPs coincide at the standard rating temperatures
(Heating = 8°C and Cooling 35°C), was then fitted to the hour-by-hour total of rooms-plus-
ducts loads to estimate the annual consumption and also the annual average COP for cooling.
The efficiency of the gas furnace is largely independent of ambient temperature so this

technique is not required for the heating energy in this project but the incorporation of RCACs
in the proposed website would be a worthwhile extension of this project.
This process converts the AccuRate results to metered energy values in kWh for cooling and
MJ for heating.
Figure 3 – Inferred heating and cooling COP vs Ambient temperature
2.14 RatingOptimizer
RatingOptimizer is another proprietary software developed by Energy Partners. This software

has the following functions:
 Reads in SCRATCH files generated by AccuRate and applied energy efficiency

measures to the house model.
 Batch runs to do large-volume simulation automatically.
 Calculates degree.hours according to the user-defined tolerable range.
2.15 Quality Assurance
To ensure the quality of the simulations and calculations, the following precautions are
carried out:
 Manual checking of the SCRATCH files to ensure the modifications made by

RatingOptimizer are correct.
 SCRATCH files generated by RatingOptimizer are also compared with those
generated by AccuRate to ensure the energy measures are applied correctly.
 The health data results are checked by doing manual calculations and compared with
the results generated by the Rating Optimizer.

2.16 Energy Costs
Energy prices vary across the state and vary by time of use.
Gas has seasonally adjusted peak and off peak seasonally and electricity is consumed
predominantly as a single or two stage tariffs. For this analysis the marginal energy prices
produced by Energy Consult for SV in 2013 have been used. Electricity prices have been
increased by 3.7% and gas prices have been increased by 4.9% to account for recent price
changes.
The energy saved by implementing the measures in this study are costed at the marginal
prices relevant for the times that the technologies are active.
The marginal cost of electricity on a single rate tariff is the average electricity price. This is
27.48 cents/kWh for Metropolitan areas and 29.96 cents/kWh for Regional Victoria.
Gas prices are more complex as there are a number of price steps, which are different in peak
periods of June to October than the non-peak periods. Consequently, the marginal prices vary
depending on seasonal use profile and the amount of gas used. EnergyConsult has provided
marginal gas prices for small, medium and large gas using households. The marginal gas
prices are given in Table 11 below, updated to 2014.
Metropolitan Regional Vic Mildura

Small Medium Large Small Medium Large
Average Marginal Winter c/MJ 1.70 1.47 1.47 1.79 1.60 1.60 2.69
Average Marginal Summer c/MJ 1.81 1.54 1.49 1.80 1.62 1.62 3.45
Solar savings Price c/MJ 1.77 1.52 1.48 1.80 1.61 1.61 3.22
Gas* savings price c/MJ 1.75 1.51 1.48 1.80 1.61 1.61 3.07
 Gas saved at the average of summer and winter marginal rates
Table 11 – Marginal gas prices 2014 by household size and region (after EnergyConsult 2013)
The gas prices in Mildura are different from the rest of Victoria in that there is no change
between summer and winter.
For this analysis, households of
 1 and 2 persons will use the prices for Small,

 3 persons - the mean of Small and Medium marginal prices,
 4 and 5 persons - Medium prices and
 6 or more person households - Large prices.
2.16.1 Seasonal Savings of Gas

As gas prices vary seasonally (peak prices are from 1 June to 30 October) reduction in gas
consumption resulting from solar boosted water heaters across the seasons is required to
evaluate savings. The savings will predominantly occur in summer resulting in a 70% savings

during off peak months and 30% saving during peak months. Therefore, the marginal savings
for a solar boosted gas water heater will be 70% ‘summer prices and 30% winter prices
(shown in Table 11 above).
Gas saved by using the more efficient 5 star gas water heater will be at the average of the
marginal summer and winter prices. (See Table 11)
2.17 Solar Hot Water System
In order to understand the savings to be made when installing a solar water heater or a 5 star
gas water heater the amount of hot water used for households of different sizes is needed.
There exists a range of discussions in the literature but there is no clear method.
A model of hot water use based on the levels specified in AS/NZS 4234 was developed. The
model is linear with consumption varying proportionally with occupancy, as listed in Table
12.
Number of
1 2 3 4 5 6 7 8
occupantsr
HW litres 65 99 133 167 201 235 269 303
Raised by 45K
Qave MJ/day 12.3 18.7 25.1 31.6 38.0 44.4 50.8 57.3
Qpeaks MJ/day 13.6 20.7 27.8 34.9 42.0 49.1 56.2 63.3
Table 12 – Hot water consumption vs occupant number (consumption in Litres, Average Energy per day and in Peak Energy
per day)
The water heater most likely to be installed in a Victorian home by a builder is a four star gas
storage water heater. The calculation of the Annual Energy Saving using AS/NZS 4234 is
based on a comparison with a three star gas water heater. Consequently, for this analysis the
Annual Energy Consumption for both three star and four star gas water heaters are required.
The Annual Energy Consumption (AE) of gas storage water heaters is given in Table 13.
Occupants
1 2 3 4 5 6 7 8
litres/day 65 99 133 167 201 235 269 303
Hot water MJ/day 12.3 18.7 25.2 31.6 38.0 44.4 50.9 57.3
consumption
MJ/year 4,489 6,837 9,186 11,535 13,883 16,232 18,580 20,929
3 Star Gas Water heater
Gas used MJ/year 14,010 16,756 19,503 22,249 24,996 27,742 30,489 33,235
Gas used MJ/year 12,170 14,871 17,572 20,273 22,974 25,675 28,375 31,076
Table 13 – Gas consumed by three and four star gas storage water heaters vs occupancy

2.17.1 Gas Consumed By a Solar Hot Water System

AS/NZS 4234 gives a method to evaluate the savings from a solar water heater. This method
has been used to estimate the savings for solar water heaters to be eligible for rebates in
Victoria up until early 2013. The data for all water heaters listed has been analysed and those
models that have been installed in the last two years of the rebate program have been used to
calculate the likely savings over a range of hot water loads, relating to occupant numbers.
The average solar water heater savings in Zone 4 (Southern Victoria) was 75% for the
AS/NZS4234 ‘small’ load, approximately 120 litres/day, and 68% for the AS/NZS4234
‘medium’ load, approximately 200 litres/day.
Some solar water heaters had performance estimates for both small and medium loads. These
were used to estimate the reduction in solar contribution of solar water heaters (% saving) as
more hot water was withdrawn. Whilst the percentage saved decreased, the actual energy
saved increased as the load also increased more, i.e. at higher load the energy saved is a
smaller percentage of a larger figure. Using the two loads available, a relationship was
estimated between the number of occupants and the energy saved. Figure 4 shows the results
of this calculation.
Gas used v's Occupancy

35
30
25
M J / Year ( '000s)
20
4 Star Gas Heater
15 Gas saved SWH
10 Gas Used SWH
0
1 2 3 4 5 6 7 8
Occupants
Figure 4 – Gas used by water heaters and saved by solar vs number of occupants
2.17.2 Performance in Northern Victorian compared to Southern Victoria

The Northern part of Victoria has a better solar climate than the Southern part of Victoria. It
is generally considered that the Great Dividing Range is the boundary between the
performance zones. This corresponds with the AS/NZS4234 division between Zone 3 (Nth
Victoria and NSW) and Zone 4 (Southern Victoria and Tasmania) which corresponds
approximately to the Great Dividing Range.

The improved performance due to the clearer skies inland has been estimated by comparing
the number of Small Technology Certificates (STCs) created for the same product for Zone 4
and Zone 3 from the Clean Energy Regulator (CER) listing. It was established that the
increase in performance is approximately 13%. Consequently savings attributable to a solar
water heater were increased by 13% for the Northern region of Victoria and the Mildura area.
2.17.3 6-Star Gas Instantaneous Water Heater Consumption

The performance of a six star instantaneous gas water heater has been estimated based on the
performance of water heater with the following parameters.
Electric Fan power 70 W

Fan run on after water stops flowing 30%
Standby 5 W
HW Flow rate 6 l/min
Table 14 Performance parameters for a six star water heater
Note that electricity is consumed in a high efficiency gas instantaneous water heater;
 To operate the control system, a constant consumption, and
 To operate the forced combustion fan when the water is being heated, a variable
consumption.
Using the parameters above the consumption of a 6 star instantaneous gas water heater and
the savings compared to a 4 star storage gas water heater are show in the result Section 3.5.
2.17.4 Cost of Solar Water Heaters

The data from the SV SHW rebate program was analysed to calculate the cost of supply and
installation of solar water heaters over the final 2 years of the program. There were 1716
individual installations over this period. The supply cost, rebate and support from VEET and
RET were listed separately. As the installation during renovation will generally qualify for
VEECs and STCs the savings to the householder from these were included. The average
price was $3577 and the average installation cost was $1687, a total of $5264.
The cost of supply of all models that had more than 5 installations was analysed. There were
1040 installations where the model was installed 5 or more times in the two year period. The
relationship between solar savings and supply costs were analysed as shown in Figure 5
below. There is no significant relationship between the solar savings and the supply cost of
the appliance.

Solar savings (med. load) vs supply cost of solar

water heaters
100%
Pertcentage Savings
80%
60%
40%
20%
0%
$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000
Supply Cost
Figure 5 – Relationship between solar savings and supply costs
Consequently, it is reasonable to use an average price and average savings in the model
developed for this project.
2.17.5 Cost of Gas Water Heaters

The cost of supply and installation of gas water heaters has been estimated from prices
available from a variety of sourcest.
The supply and installation costs for a four star storage water heater supply and install costs
vary between $1940 and $2140. Therefore the total cost used for the base case is the average
$2040). It is assumed that the existing gas supply pipe will be sufficient to supply the new
water heater.
The cost to supply and install a six star instantaneous gas water heater often requires
upgrading the gas supply as the existing gas pipe is insufficient to provide the amount of gas
needed to these appliances. Therefore, the total cost of the high efficiency gas option is
estimated at $2735.
2.17.6 Operating Life of Water Heaters

The best information on life of water heaters is given in the BIS Schrapnel reports on
appliances replaced. The results from the 2008, 2010, and 2012 surveys are given in their
report of 2012 (see Table 15 below). It indicates that solar water heaters last 28% longer than
gas storage water heaters. Gas instantaneous water heaters last 2% longer than gas storage
water heaters.
This difference in life is accounted for in the levelised cost of energy calculation by adding
that percentage to the cost of the gas storage water heater which accounts for the cost from the
next system purchased whilst the longer life system is still operating.

Year Reported Total Electric Storage Gas Storage Gas Instant Solar
2012 12.6 12.7 12.0 12.6 14.8
2010 12.8 12.8 12.2 12.3 17.7
2008 12.9 13.2 12.4 12.4 14.4
Average 12.8 12.9 12.2 12.4 15.6
Table 15 – The age of replaced water heatersu
2.17.7 Calculation of Annualised Cost

Annualised cost is a method to compare products that have different capital cost, running
costs and lifetimes. It has been used by GWA (2010)v.
The annualised cost is the total present value of the costs of a water heater divided by the
expected life of the water heater. It equalizes the differences in service lifetimes of different
technologies using an Internal Rate of Return (equivalent to a discount rate). The annualised
energy charges are the average projected energy cost over the service life of the water heater,
calculated by multiplying the projected energy tariff (c/MJ) by the energy consumed (MJ/yr)
by a water heater of that type to deliver the estimated hot water load requirement for the
household.
2.17.8 Discount Rate

The discount rate used is calculated from the energy escalation rate, the inflation rate and the
mortgage rate used to finance the new water heater, assuming that a mortgage redraw is used
to fund the complete renovation cost. The discount rate calculate as
( ) ( )
)
Equation 1
The figures used in the spreadsheet are given in Table 16 below
Energy escalation 6.0%

Inflation rate 1.0%
Mortgage rate 6.0%
Consequent Discount Rate 1.0%
Table 16 – Rates used to calculate the discount rate
2.17.9 Cost of Energy Saved

All of the evaluations of comparative savings from different water heaters presented above
require the fuel cost to be estimated over the life of the water heater. An alternative method to
evaluate if a more efficient water heater is a worthwhile investment is to estimate the energy
saved over the lifetime of the system and divide that by the difference between the purchase
and installation costs of the comparative systems adjusted for the difference in life.
( )
( )
Equation 2

2.18 Performance of Solar Photovoltaic Systems
2.18.1 Electricity Consumption

Electricity consumption will be impacted by the energy efficiency measures implemented
within the renovation. However in order to have an indication of the range of electricity
consumption the government website EnergyMadeEasyw was consulted. That website gives
daily and total electricity consumption by season for a range of occupants. This is shown in
Table 43 in Appendix Section 7.7. The relationship between occupancy and electricity use is
shown in Figure 6. It follows the linear equation below:
( )
Equation 3
12000
Annual Electricity Consumption
10000
8000
kWh/yr
6000
4000
2000
0
0 1 2 3 4 5 6 7 8
Household occupancy
Figure 6 – Electricity consumption vs occupancy for Victoria
2.18.2 System Size

According to Sunwiz, the overall average size for PV systems installed in Victoria is 2.4 kWx.
This is similar to the average across all Australia. However, as feed in tariffs have reduced to
generally less than 1/3 of the retail cost of electricity, the financial optimum sizing has
reduced. Moysey states that ‘export percentage (the portion of energy sent out to the grid) is
now one of the major determinant of payback times’ and ‘when it comes to getting the best
return on your investment in PV, smaller seems to be increasingly better’. Gillz indicates that
for household use of 12kWh/day the financially optimum array size is approx. 1 kW and for
20kWh/day it is 1.6 kWaa.
Consequently, this analysis will consider an array size of approximately 1.5 kW. Compared to
a 2.4 kW system a larger proportion of the locally generated electricity will be used within the
house. Note that displaced purchase of electricity is more valuable (at a price of 27.5 to 30
cents/kWh) than electricity exported from which the householder will receive income of 8
cents/kWh.

It is noted that the 1.5 kW system never outputs 1.5 kW from the inverter. Due to the inverter
not being 100% efficient, the rated panel output would never be the amount available after the
inverter. As there are a whole number of panels to be installed it is often the case that a
nominal 1.5 kW system will have a slightly higher capacity and could put out 1.5 kW after the
inverter in that case.
2.18.3 Performance Calculation

The NREL SAMbb calculation methodology was used to evaluate the solar electricity
available from a 1.5 kW system. SAM has weather data available for Melbourne,
Tullamarine, Ballarat and Mildura.
The modelling included a tilt of 25 degrees from horizontal and was undertaken with the
panels facing North, North East and North West.
The electrical load from the household is required to estimate the percentage exported. The
profile in Figure 37 was scaled to give the seasonal loads representative of Victorian
households as shown Table 43cc in Appendix 7.7.
2.18.4 Electricity Used On Site and Exported

As the cost of purchasing electricity from the grid is higher than the price paid for electricity
exported from the site to the grid, the greater amount used on site the better the financial
return from the system. Consequently there is a reduced financial benefit from the PV system
as the dwelling becomes more efficient. As this is a complex interaction and will depend on
the electricity consumed by other appliances and particularly the daily electricity consumption
profile, a constant profile has been used and scaled to meet the seasonal loads. Note that the
savings made by implementing energy efficiency measures in the household are not
accounted for in the spreadsheet calculations.
Figure 7 and Figure 8 illustrate this for Tullamarine.

Tullamarine
2,500
PV generated kWh/yr 2,000
1,500
1,000
500
-
0 2000 4000 6000 8000 10000 12000
Household Load kWh/yr
exported Saved Total
Figure 7 – PV generated electricity consumed on site (saved) and exported
Tullamarine
$600
PV impact on bills
$500
$400
$ / yr
$300
$200
$100
$-
0 2000 4000 6000 8000 10000 12000
$ saved $ earned $ total
Figure 8 – The impact on electricity bills from PV generation
2.18.5 Cost of PV System

The costs of PV systems have reduced significantly over the recent past due firstly to high
volumes of sales following attractive feed in tariffs and recently due to increased production
and lowering of sales growth leading to a more competitive market.
In order to have a realistic price, a provider of quality systems was approached in November
2013. They suggested the appropriate range for a 1.5 kW system ‘should be $3000-$4000’ but
said that ‘There will always be someone out there doing it for less’. They also suggested that
a realistic cost for a tilt frame was $500.

From current advertising offers it seems that prices in the order of $2500 - $3000 are
available. Consequently, the model used a capital cost (purchase and installation) of $3000
with an additional cost of $500 should the roof be flat or if there is insufficient space for both
a solar water heater (~5m2) and a PV system (~10 m2) on the north facing roof.

The cost of energy saved is calculated in the same manner as for the solar water heating
system. That is the total upfront cost divided by the total energy generated by the PV system.
The total energy generated was assumed to be over a twenty year lifetime. Note that many
systems have a longer lifetime, however, twenty years was chosen as generation often reduces
over the lifetime of the system.
2.18.7 Annualised Costs/Benefits

The annualised costs of ownership are calculated in a similar manner to the solar hot water
calculation. However, the PV system results in savings compared to sourcing electricity from
the grid so the annual expenditure is negativedd. Consequently as the savings from the PV in
these cases is less than the annualised cost of purchase and installation the annualised figure is
a benefit not a cost. If the cost of PV increased or the cost of grid power decreased or the
percentage exported at a low feed in tariff increased, then this could be a negative figure.
2.18.8 PV Output and Cooling Peak Load

The PV hourly output is compared with the hourly cooling peak load from the peak load
analysis results. To demonstrate the worse-case scenario, the Estate style typology is chosen
for this comparison. Due to the heavy-weight construction of this typology the peak load
would be later in the day when the PV output is far from its maximum.

3 Results
3.1 Baseline
Below are the estimated energy demands from the NatHERS simulation results of the four
typologies in CZ6 (Tullamarine). Figure 9 shows the results with usage profile “Away during
the day” with central heating/cooling and Figure 10 is results of “Always home” with central
heating/cooling as well.
Figure 9 – Annual Energy Demand for the Baselines in CZ6, with “Away during the day” usage profile
Figure 10 – Annual Energy Demand for the Baselines in CZ6, with “Always home” usage profile

3.2 All Measures Best Practice
Similarly, the all measures best practice energy demand results from NatHERS simulations
for CZ6 are presented in Figure 11 and Figure 12.
Figure 11 – Annual Energy Demand for the All Measures Best Practices in CZ6, with “Away during day” usage profile
Figure 12 – Annual Energy Demand for the All Measures Best Practices in CZ6, with “Always home” usage profile

3.3 Lighting
Climate: Ballarat
(66)
Typology: Heavyweight Inter-War
Area (m²): 135.8
Sensible Latent Total
Baseline Ceiling Heating Cooling Cooling Energy % Decimal
Insulation R3.5 (MJ/m²/yr) (MJ/m²/yr) (MJ/m²/yr) (MJ/m²/yr) Difference Stars
Uninterrupted R3.5
but with 3 vented
downlights added 441.12 16.85 1.99 459.96 0.94% 3.25
Uninterrupted R3.5
(equivalent to no
downlights) 437.08 16.63 1.96 455.67 - 3.28
R3.5 on all but 0.09
m² having no
insulation 437.48 16.74 1.96 456.18 0.11% 3.28
As above but with 3
vented downlights
added 441.48 16.86 1.96 460.30 1.02% 3.25
Table 17 – Ceiling insulation with downlight clearances test results
In rating mode the NatHERS simulation engine does not calculate the lighting energy
consumption. However the infiltration caused by using vented downlights is included as part
of the air-flow calculation which affects the heating/cooling energy demands. A low energy
lighting plan for the house (vented downlights used only in areas where needed i.e. kitchen
bench, for the Baseline) was proposed as one of the energy efficiency measures. According to
the NatHERS Technical Note 2ee, clearances are required around the downlights. The results
of the simulations performed, which explore the significance of the heat loss and gain through
the uninsulated ceiling, are listed in Table 17.
From the simulation results shown in Table 17, the loss of ceiling insulation due to the use of
downlights only affect the heating/cooling energy demands by about 1%. The “Low energy
lighting plan for house” is excluded from this study.
For details of the Baseline lighting upgrade please refer to Appendix Section 7.2 and 7.3.

3.4 Heating Systems
Table 18 is the cost benefit analysis of upgrading the heating systems from 3 Stars to 5 Stars
(with the upgraded duct from NCC compliant R1.0 to R1.5) for the Baseline scenario with the
‘always home’ usage profile in CZ6. Note that the building shell remains unchanged.
Average differential cost to

purchase and install ($) Cost savings Payback
Typology 5 Stars heating systems per annum ($) period
Weatherboard cottage 882 389 2.3
Inter-war house 950 313 3.0
Double fronted brick veneer 1003 375 2.7
Estate style 834 239 3.5
Table 18 – Cost of 5 Stars heating & cooling systems for the Baseline scenario in CZ6
The same analysis for the All Measures Best Practice scenario in the same CZ6 is shown in
Table 19.
Average differential cost to

purchase and install ($) Cost savings Payback
Typology 5 Stars heating systems per annum ($) period
Weatherboard cottage 915 77 12
Inter-war house 975 77 13
Double fronted brick veneer 1035 72 14
Estate style 855 78 11
Table 19 – Cost of 5 Stars heating & cooling systems for All EEM Applied scenario in CZ6
For the full set of data please refer to the Excel workbook “ExcelSpreadsheetDevelopment -
2014-06-30(Variation)-v19.xlsm”

3.5 Hot Water Systems
See Appendix 7.6 for a complete analysis

Occupants 1 2 3 4 5 6 7 8
litres/day 65 99 133 167 201 235 269 303
Hot water
consumption MJ/day 12.29 18.72 25.15 31.58 38.01 44.44 50.87 57.3
MJ/Yr 4489 6837 9186 11535 13883 16232 18580 20929
Gas used MJ/year 12170 14871 17572 20273 22974 25675 28375 31076
Metro 229 280 319 355 402 427 472 517
Regional-North 226 276 319 361 409 443 489 536
$/yr cost
Regional-South 226 276 319 361 409 443 489 536
Mildura 392 479 566 653 740 827 914 1001
Metro 382 430 466 500 544 568 610 652
Annualised cost Regional-North 379 425 466 505 550 582 626 669
$/yr Regional-South 379 425 466 505 550 582 626 669
Mildura 534 616 697 779 860 942 1023 1105
Solar water heater
Compared to 4
Savings% South 83% 79% 74% 70% 65% 61% 57% 53%
star gas water
Saving % North heater 96% 90% 85% 80% 75% 70% 65% 61%
Gas saved South MJ/yr 10080 11687 12989 14154 14975 15687 16180 16453
Gas Saved North MJ/yr 11629 13452 14928 16251 17185 17996 18558 18872
Metro 190 220 227 248 262 261 269 274
Regional-North 219 253 261 284 301 300 309 314
$/yr Saved
Regional-South 187 217 231 252 267 271 279 284
Mildura 374 434 481 524 554 580 598 609
Metro 374 393 422 436 466 491 525 562
$/yr
Regional-South 373 392 419 438 469 496 531 570
Mildura 353 379 415 456 509 565 628 699
6 star gas
Gas consumed MJ/yr 8571 11060 13549 16038 18526 21015 23504 25993
Gas saved MJ/yr 3599 3811 4023 4235 4447 4659 4871 5083
Elect. consumed kWh/yr 49 52 55 58 61 64 67 70
Metro 54 57 55 58 61 60 63 65
$/yr Saved Regional-North 52 55 55 58 61 61 64 67

Regional-South 52 55 55 58 61 61 64 67
Mildura 101 107 113 119 125 131 137 143
Metro 384 429 468 498 540 564 604 644
$/yr Regional-South 383 427 468 504 546 578 619 660
Mildura 493 569 644 720 796 872 948 1024
Table 20 Performance of gas boosted solar and six star gas compared to a four star storage gas water heater

3.5.1 Annualised costs

Annualised costs are plotted below. The figures indicate that a solar water heater has the
lowest annualise cost, and that the two gas options are effectively the same cost on an
annualised basis, except in Mildura where the six star water heater is always the more
economical option of the gas water heaters, due to higher gas prices.
Metro Annualised Cost

700
650
600
550
500
450
400
350
300
1 2 3 4 5 6 7 8
Occupants
4 star gas water heater Solar water heater 6 star gas
Figure 13 Annualised cost of using each of the three options - Metro Area
Regional-North Annualised Cost

700
650
600
550
500
450
400
350
300
1 2 3 4 5 6 7 8
Occupants
Figure 14 Annualised cost of using each of the three options – Regional- North Area

Regional-South Annualised Cost

700
650
600
550
500
450
400
350
300
1 2 3 4 5 6 7 8
Occupants
Figure 15 Annualised cost of using each of the three options - Regional - South Area
Mildura Annualised Cost

1200
1100
1000
900
800
700
600
500
400
300
1 2 3 4 5 6 7 8
Occupants
Figure 16 Annualised cost of using each of the three options - Mildura Area

Comparison of water heating with the four star gas storage water heater
Occupants
1 2 3 4 5 6 7 8
Regional-South 0.015 0.013 0.012 0.011 0.010 0.010 0.009 0.009
Solar with 0.013 0.012 0.010 0.009 0.009 0.008 0.008 0.008
Regional-North
Gas
Metro 0.015 0.013 0.012 0.011 0.010 0.010 0.009 0.009
Boosting
Mildura 0.013 0.012 0.010 0.009 0.009 0.008 0.008 0.008
Table 21 – Cost of energy saved $/MJ compared to four star gas storage water heater

3.5.2 Summary
 Gas boosted Solar water heaters are always more cost effective than a four star
gas water heater.
 High efficiency six star gas water heaters are as cost effective or better than four
star gas water heaters, especially so in households with higher hot water use and
in regions where gas prices are higher.
 An average gas boosted solar water heater will save 53% in large (8 occupant)
households to 83% in Small (single occupant) households gas compared to a four
star gas water heater in Southern Victoria. It will save more in Northern Victoria.
Based on Annualised costs;
 Gas boosted Solar water heaters are always the most cost effective option
For all of Victoria;
 The money a householder needs to invest to save a MJ of gas is equivalent to, or

less than, the current cost of gas for both a gas boosted solar water heater and a
six star instantaneous gas water heater when compared to a four star water heater.
These options are always less expensive in homes where there are three or more
occupants.

3.6 Solar PV Systems
See Appendix 7.7 for a complete analysis

Occupants 1 2 3 4 5 6 7 8
Load 3886 4808 5691 6613 7526 8440 9355 10253
Tullamarine 2,169 kWh/year
exported 1,030 859 711 572 446 339 247 172
imported -2,747 -3,499 -4,234 -5,017 -5,803 -6,611 -7,433 -8,256
Saved 1,139 1,309 1,457 1,597 1,723 1,829 1,921 1,997
Export % 47% 40% 33% 26% 21% 16% 11% 8%
self-use % 53% 60% 67% 74% 79% 84% 89% 92%
$ saved $313 $359.91 $400.49 $438.84 $473.52 $502.76 $528.04 $548.89
$ earned $82.41 $68.73 $56.92 $45.76 $35.66 $27.15 $19.79 $13.72
$ total $395.33 $428.64 $457.41 $484.60 $509.18 $529.91 $547.83 $562.61
Ballarat 2,188 kWh/year
exported 1003 826 676 537 411 307 216 143
imported -2701 -3445 -4179 -4962 -5749 -6559 -7383 -8209
Saved 1,185 1,363 1,512 1,652 1,777 1,881 1,972 2,045
Export % 46% 38% 31% 25% 19% 14% 10% 7%
self-use % 54% 62% 69% 75% 81% 86% 90% 93%
$ saved $355.07 $408.22 $452.95 $494.85 $532.37 $563.65 $590.75 $612.64
$ earned $80.25 $66.05 $54.11 $42.92 $32.90 $24.55 $17.31 $11.47
$ total $435.32 $474.28 $507.06 $537.77 $565.28 $588.20 $608.07 $624.11
Melbourne 1,982 kWh/year
exported 920 765 633 509 397 303 221 154
imported -2824 -3592 -4343 -5141 -5941 -6761 -7594 -8425
Saved 1,062 1,217 1,348 1,473 1,585 1,679 1,761 1,828
Export % 46% 39% 32% 26% 20% 15% 11% 8%
self-use % 54% 61% 68% 74% 80% 85% 89% 92%
$ saved $291.76 $334.35 $370.53 $404.80 $435.58 $461.41 $483.90 $502.40
$ earned $73.59 $61.20 $50.67 $40.69 $31.73 $24.22 $17.67 $12.28
$ total $365.36 $395.55 $421.20 $445.49 $467.31 $485.62 $501.57 $514.69
Mildura 2,521 kWh/year
exported 1296 1098 920 749 591 451 331 231
imported -2661 -3385 -4091 -4842 -5595 -6370 -7165 -7964
Saved 1,224 1,423 1,600 1,772 1,930 2,070 2,190 2,290
Export % 51% 44% 37% 30% 23% 18% 13% 9%
self-use % 49% 56% 63% 70% 77% 82% 87% 91%
$ saved $367 $426 $479 $531 $578 $620 $656 $686
$ earned $104 $88 $74 $60 $47 $36 $26 $18
$ total $471 $514 $553 $591 $626 $656 $683 $705
Regional South 2169 kWh/year
exported 1030 859 711 572 446 339 247 172
imported -2747 -3499 -4234 -5017 -5803 -6611 -7433 -8256
Saved 1139 1309 1457 1597 1723 1829 1921 1997
Export % 47% 40% 33% 26% 21% 16% 11% 8%
self use % 53% 60% 67% 74% 79% 84% 89% 92%
$ saved $341.11 $392.32 $436.56 $478.37 $516.18 $548.04 $575.60 $598.33
$ earned $82.41 $68.73 $56.92 $45.76 $35.66 $27.15 $19.79 $13.72
$ total $423.51 $461.05 $493.48 $524.12 $551.84 $575.19 $595.39 $612.05
Table 22 – Summary of the PV system analysis results

3.6.1 PV Generation across Victoria
PV Generation
3,000
2,500
Generation kWh/year
2,000
1,500
1,000
500
-
Tullamarine Ballarat Melbourne Mildura
Generation 2,169 2,188 1,982 2,521
Figure 17 – PV generation by location
It can be seen that the generation in Tullamarine is midway between Melbourne (3.7% lower)
and Ballarat (3.8% higher). The generation in Mildura is 19.8% higher than Tullamarine
3.6.2 Cost of Energy Produced

The cost of energy produced is calculated in the same manner as for the cost of energy saved
for solar water heating system. That is the total upfront cost divided by the total energy
generated by the PV system. The total energy generated was assumed to be over a twenty
year lifetime. Note that many systems have a longer lifetime, however, twenty years was
chosen as generation often reduces over the lifetime of the system. The results are given in
Table 23Table 45.
Region Installed on Nth facing Installed on flat roof or where a

sloping roof rack is required to face North
Southern Victoria $ 0.077 $ 0.090
Northern Victoria $ 0.060 $ 0.070
Table 23 Cost of electricity produced

calculation. However, a 1.5 kW PV system results in savings compared to sourcing electricity
from the grid so the annual expenditure is negativeff. Consequently as the savings from the PV
in these cases is less than the annualised cost of purchase and installation the annualised
figure is a benefit not a cost. If the cost of PV increased or the cost of grid power decreased
or the percentage exported at a low feed in tariff increased, then this could be a negative
figure.
Annualised Savings are given in Table 24:

Occupants 1 2 3 4 5 6 7 8
Load 3886 4808 5691 6613 7526 8440 9355 10253
Tullamarine $207 $237 $263 $287 $ 309 $328 $344 $358
$/year
Mildura $ 275 $314 $349 $383 $414 $442 $466 $ 486
Melbourne $ 180 $207 $230 $252 $272 $288 $303 $314
Table 24 – Annualised savings by location and Household size/load
3.6.4 PV Output and Cooling Peak Load
Figure 18 – PV Output and Cooling Peak Load of Estate style typology in CZ6
The comparison of PV output and the hourly cooling peak load is shown in Figure 18. The
total internal heat gain is the sum of the sensible and latent heat gain of the “always home”
occupancy pattern. The hour on the x-axis is standard time hour. Figure 19 shows the net
export (+ve) and import (-ve).

Figure 19 – Net export (+ve) and import (-ve)
3.6.5 Summary
 With current electricity tariffs and feed in tariffs the most cost
effective option is to size a PV system so that most of the electricity it
produces is used onsite.
 A 1.5 kW system will save the household $200 to $480 annually over
its operating life including paying for the purchase and installation
price.
 A PV system installed in Northern Victoria can produce up to 20%

more than in Southern Victoria
 If there is no suitable North facing roof available, a North Easterly

orientation will provide more Electricity than a North Westerly
orientation. However, within 45 degrees of true north there is less
than 10% decrease in output.
 If a flat roof or an unsuitable orientation is the only option, then racks

to tilt and orientate the PV modules can be used. This will add
approximately 15% to 20% to the installed cost.
 The money a householder needs to invest to save a kWh of electricity

is significantly less than the current cost of electricity. 6 -9 c/kWh
compared to 27 - 30 c/kWh to purchase

3.7 Building Fabric Improvements
The additional cost of renovating the house’s building envelope (both existing and extension)
from Baseline to Best Practice with one of the energy efficiency measures applied are listed in
Table 25:
Additional cost ($)

Double
Weatherboard Inter-war Estate
fronted
Energy Efficiency Measure cottage house style
brick veneer
Ceiling 3,074 2,194 2,441 2,065
Roof 814 974 699 1,074
External Wall 2,212 3,986 1,948 1,902
Subfloor 2,448 1,641 1,945 990
Low-E Clear Glazing 7,049 7,574 9,485 5,754
Double glaze clear with 12mm Air 7,509 8,001 9,687 5,862
Double glaze Low-E 12mm argon

in Improved Aluminium Frame to 8,939 9,326 10,313 6,195
extension windows
Double glaze Low-E 12mm argon

in Improved Aluminium Frame to 16,567 17,398 19,812 11,931
all windows
Draught Proofing* 1,551 2,096 2,201 1,648
Lighting Type 1,054 1,289 1,054 820
All Measures Best Practice** 27,720 29,578 30,101 20,430

*We assume all the new aluminium frame windows in the extension have weather strip around sashes. Only existing
windows needed to be weather sealed.
For a full list of draught proofing measures, please refer to Appendix Section 7.2 or 7.3, energy efficiency measures item 9
“Air sealing”gg
* *Equipped with all 7 improvements and the highest performing of the fenestration improvements – Generic DG Low-e
argon in improved Aluminium frame to both existing and extension windows
Table 25 – Building Fabric improvement: additional cost to upgrade from Baseline to selected EEM

Table 26 is the building fabric cost analysis for the All Measures Best Practice scenario in
CZ6.
Cost for the Cost savings per Payback

Typology renovation ($) annum ($) period
Max 1370 23
Weatherboard cottage 32,000
Min 1180 27
Max 987 35
Inter-war house 34,600
Min 956 36
Max 1280 30
Double fronted brick veneer 38,400
Min 1220 31
Max 681 38
Estate style 25,500
Min 650 39
Table 26 – Building fabric cost analysis for the All Measures Best Practice scenario in CZ6
For the full set of data please refer to the Excel workbook “ExcelSpreadsheetDevelopment -
2014-06-30(Variation)-v19.xlsm”.

Figure 20 to Figure 23 are the steady state peaks and metered energy of the peak load analysis
for NCC CZ6. For the full set of graphs and data please refer to the excel workbook “Peak
Load Analysis - Graphs and Data - 2014-06-30.xlsx”.
Figure 20 – Steady state peak of gas heating (MJ/h) for CZ6
Figure 21 – Steady state peak of electrical cooling (kW) for CZ6

Figure 22 – Total annual metered energy of heating (MJ/yr) for CZ6
Figure 23 – Total metered energy of cooling (kW/yr) for CZ6

The house living areas (exclude wet areas) are divided into two types: daytime and night-time
zone according to the NatHERS Technical Note 1hh.
The daytime and night-time zone heating /cooling degree.hours for a comfort range (18°C –
23°C) are calculated and example graphs are shown below. For the full set of graphs and data
please refer to the excel workbook “Health and Comfort Data Analysis - Graphs and Data -
2014-06-18.xlsx”.
Figure 24 – Daytime zone cooling degree.hour to Base 23°C in CZ6
Figure 25 – Night-time Zone heating degree.hour to Base 18°C in CZ6

The max/min temperatures of daytime/night-time zone, together with the outdoor max/min
temperatures of the corresponding climate zone are shown in the example graphs below. For
the full set of graphs and data, which includes the time and date when the max/min
temperatures occur, please refer to the same excel workbook “Health and Comfort Data
Analysis - Graphs and Data - 2014-06-18.xlsx”.
Figure 26 – Daytime zone max temperature difference between Baseline and All Measures Best Practice in CZ6
Figure 27 – Night-time zone min temperature difference between Baseline and All Measures Best Practice in CZ6

3.10 Health Analysis
Similar to the Comfort Analysis but with a different tolerable range (13°C – 30°C), the
daytime and night-time zone heating /cooling degree.hours are calculated and example graphs
are shown below. Full set of graphs and data are in the same excel workbook “Health and
Comfort Data Analysis - Graphs and Data - 2014-06-18.xlsx”.
Figure 28 – Daytime zone cooling degree.hour to Base 30°C in CZ6
Figure 29 – Night-time zone heating degree.hour to Base 13°C in CZ6

4 Interpretation
4.1 General
In general, all of the energy efficiency measures simulated for this project can improve the
comfort of the occupants and reduce the extreme temperatures inside the house. Peak loads of
heating and cooling equipment can also be reduced. House owners can select a smaller
heating/cooling system to save money or use a similar amount to buy a higher efficiency
system.
When the house is not heated or cooled, the internal temperature can be uncomfortably
high/low and the dwellings will be unsuitable for occupants to stay. The maximum and
minimum indoor temperatures for daytime and night-time zones, with Baseline and Best
Practice energy efficiency measures applied are set out in Table 27 and Table 28. These
results cover all typologies in this study. Generally, with better energy efficient measurements
applied the internal temperatures can be maintained nearer to the tolerable range.
Daytime Zones Min. (°C) Max. (°C)

Climate Zone NCC 4 NCC 6 NCC 7 NCC 4 NCC 6 NCC 7
Outdoor 0.2 0.2 -3.3 42.7 38.6 37.5
Baseline 6.27 4.70 2.93 42.48 40.68 37.08
Best Practice 10.35 8.13 6.63 41.65 38.83 35.72
Table 27 – Construction Influence on Maximum and Minimum Temperatures in Daytime Zone,
Night-time Zone Min. (°C) Max. (°C)

Climate Zone NCC 4 NCC 6 NCC 7 NCC 4 NCC 6 NCC 7
Outdoor 0.2 0.2 -3.3 42.7 38.6 37.5
Baseline 5.63 4.75 2.55 44.15 40.70 37.13
Best Practice 10.33 8.75 7.30 40.83 39.38 36.07
Table 28 – Construction Influence on Maximum and Minimum Temperatures in Night-time Zone
In the NatHERS simulation, when outside air is beneficial for cooling, the window and door
openings are assumed to be open and the house is cooled by cross and stack ventilation. All
the annual total cooling degree hours of the house models should have values lower than the
outdoor degree hour (+ve values in the graphs presented).
From the comfort and health data analysis results, the cooling degree hours and maximum
indoor temperature are counterintuitive. There are simulations with cooling degree hours and
maximum indoor temperature higher than the outdoor degree hour / temperature, which
implies the window opening function in AccuRate does not work. When the outside air is
beneficial for cooling, the openings are still close.
Another analysis carried out is the peak load analysis. The all measures best practice scenarios
have a reduction in peak loads and thus in heating/cooling energy consumptions as shown in
Table 29 which covers all typologies used in this study.

% reduction when selected Baseline equipped with all energy

efficiency measures*
Steady State
Steady State Peak Total Metered Total Metered
Peak Electrical Energy - Energy -
Gas Heating Cooling Heating Cooling
Climate Zone (MJ) (kW) (kWh) (kWh)
Max -88% -77% -88% -76%
NCC 4
Min -82% -57% -81% -56%
Max -87% -78% -87% -78%
NCC 6
Min -75% -58% -74% -57%
Max -85% -95% -85% -95%
NCC 7
Min -74% -61% -74% -60%
Table 29 – Peak load analysis summary
* Equipped with all 7 improvements and the highest performing of the fenestration improvements – Generic DG Low-e argon
in improved Aluminium frame to both existing and extension windows
On a clear and sunny day, the 1.5 kW PV system used in this analysis has a higher net export
for the All Measures Best Practice scenarios than the Baseline, either with lower or higher
efficiency heating/cooling appliances. For the Baseline scenario, the PV system has a net
export only until about 12 noon.
The cost benefit of upgrading the heating systems, from 3 stars to 5 stars, is also analysed. In
general, higher star rating heating appliances are more expensive (higher in capital cost) but
more efficient systems reduce the energy consumption (operating cost).
The payback period of upgrading from 3 Star to 5 Star heating system for the Baseline
scenario is less than 4 years. However, as shown in Section 3.4, the payback period of the
same analysis for the All Measures Best Practice scenario, is over 10 years which is usually
unattractive to house owner.
4.2 Spreadsheets in a Workbook
The “ExcelSpreadsheetDevelopment - 2014-06-30(Variation)-v19.xlsm” is developed for

sorting the simulation results as desired.
On the “Main” worksheet, the desired simulation results can be selected from the 5 drop-
down lists. The price of the gas and electricity can be input on the same worksheet for the cost
calculations. By pressing the button the excel workbook can sort, create and display the
results in the following 2 worksheets:
 “RenovationsChecklist” is developed to have the same output format for the SV to

develop their online tools. It shows the building fabric cost and payback period of the
selected scenario, and also the cost and payback period to upgrade the heating systems
to 5 Stars.

 “SortedResults” contains detailed results, such as energy demands and consumptions,

cost break-down of applying selected energy efficiency measures and saving per
annum.

5 Conclusions and Recommendations

This report and the work that it presents demonstrates that there is much scope for cost
effective enhancement of a house renovation project from the application of Best Practice
techniques in lieu of the general practice of barely complying with the energy efficiency
provisions in the NCC (Volume Two, Section 13). Beyond the NCC provisions for the
building envelope, similar results have been found for the selection of higher performing
heating and cooling appliances relative to both the MEPS and the current slightly better than
MEPS market norm. Similarly, the installation of solar water heaters and solar PV systems
(for on-site renewable energy collection and conversion) have been shown to be viable
choices for inclusion in such renovation projects.
It is therefore recommended that these results be disseminated to the housing industry and the
home enhancement market throughout Victoria and be regularly updated to maintain currency
such as with the forecasted substantial increases in residential natural gas tariffs.
It is further recommended that other jurisdictions be fostered in applying this concept to their
own specific situations and to share any advances they might make with the initiators at
Sustainability Victoria. Such emulation can enhance this work in its completeness over time
at the lowest cost to the respective governments.
More specific recommendations are briefly discussed below.
5.1 Heat pumps and solar electric water heaters
The majority of Victorian houses have gas connections and gas is currently the preferred fuel
for water heaters, either as the only fuel or as the boost fuel for a solar water heater. However,
there are a number of Victorian houses that do not have access to natural gas, so their options
for technology to supply hot water when renovating are
 electric resistance storage heating (often at lower cost off peak rates),
 heat pumps (most often installed on a continuous tariff, with some impact on peak
demand),
 electric boosted solar water heaters (often on an off peak tariff), or in a few cases
 instantaneous electric water heaters (single rate tariff often with a high demand around
peak demand times); and
 bottled gas which is more expensive than natural gas.
Due to the different tariffs and service life of the technologies it is not a simple task to
undertake this evaluation. However, adding this to the existing options could be done as a
follow up task. Knowledge of the sector and research will be required for evaluation of heat
pump performance, as;
 there is a wide range of performance and price of heat pumps and

 heat pumps haven’t been widely used prior to the last decade, so there is not a lot of
data on expected life.

5.2 Recommended Further Work
Incorporation of RCACs
Reticulated natural gas has been assumed for the heating energy in this project but the
incorporation of RCACs in the proposed website would be a worthwhile extension of this
project. This will cover the areas beyond the reticulated gas system and accommodate the
likely reduced dominance of gas, if gas prices rise relative to electricity as is widely predicted.
The exploration of the relative energy costs and greenhouse gas emissions for reverse cycle
air-conditioners does need further assessment. ‘Off-the-shelf’ split systems can provide a
heating COP of 4.6 or higher. If this is combined with a roof top solar PV system, the energy
consumption and relative greenhouse gas emissions could be significantly reduced.
Appliance and Luminaire Efficiencies

Appliance and electric lamp efficiencies (and COPs) should be further articulated so that users
can estimate their savings whatever rated appliance they might select. This may include the
power, amp-age and wattage labelling that is attached to all appliances. In particular,
comparison with MEPS systems rather than the market norms will afford reduced payback
periods and assist home owners to be informed and resist such selection by low cost building
contractors.
Ducted System Efficiencies

In recognition of market limitations, only low and medium performance ductwork has been
considered in this project due to its current dominance in flexible ductwork manufacture.
Higher insulation value flexible ductwork is manufactured and available in Victoria and could
be included to demonstrate the cost effectiveness of making such selections at the design
stage thus deepening the market and reducing the differential costs. This has occurred in the
U.S.A. where the Department of Energy has invested in significant training and technical
support for system designers, specifiers, installers and consumers.
Targeted Fenestration
All the glazing improvement options used in this study return very high and unacceptable
payback periods with an average of about 30-300 years. One reason for this is that the
changes in glazing are applied to all windows facing all orientations and in all rooms where
this could be unnecessary for reducing energy demands. The upgrading of glazing could be
optimized by allowing for a consideration of individual room improvement subject to
orientation, function and times of occupation.
Second Storey Extensions

All four archetypes in this report are same-level extensions into the back yard. Many
householders will be contemplating upward extensions and should be afforded similar quality
advice in planning their projects.
Inclusion of Greenhouse Emissions

Comparative Greenhouse gas emissions as well as purchase price and running costs are used
by some purchasers as part of the decision making process. GHG emissions could be added to
the tool with little additional effort.

Inclusion of Cooling Energy and Peak Load Savings

With rising penetration of residential air conditioning, especially in the demographic grouping
of families engaging in house renovation and extension, augurs for the inclusion of cooling
energy savings in the calculation of payback periods. This should be further enhanced by the
inclusion of reductions in peak summer demand on the social cost of electricity generation
and distribution infrastructure, especially when that cost becomes reflected in residential
tariffs using “smart” meters.
Accounting for Daylight Saving

Modification of the simulations to realistically reflect the impacts of Daylight Saving should
be implemented, especially where the cooling energy and peak loads are to be fully
considered in summer. This would require the climate data to be off-set one hour to align the
actual weather with the occupancy patterns being simulated.
Overlooked EEMs
A project like this inevitably must target EEMs of key consideration in the house renovation
market to meet project time and cost constraints. Other EEMs will emerge over time as
building technology improves and price relativities change. Those EEMs and performance
factors noted at present as being worthy of incorporation in an expanded project include:
 Movable shading like awnings and fixed shading like eaves compared with minimal
eaves or parapets;
 Tinted and reflective glazing in single and double glazed applications with and
without Low-E coatings;
 Air-to-air heat exchange in forced ventilation for heat/cool reclaim;
 Roof space solar heat capture with thermostatically controlled ventilation systems;
 Roof colour and solar absorptivity;
 Floor insulation to a high level, say, R 5.0 under all;
 The uses of high insulation over-cladding systems, which are strongly supported in the
U.S and E.U. to significantly improve the thermal performance of existing housing;
 Shading from landscaping and neighbouring homes (beneficial and detrimental);
 Non-cardinal orientations, especially for the solar PV analysis where a north-westerly
aspect can reduce annual electricity output but increase the value of that output by
aligning its peak with the peak demand on the electricity grid; and
 Comparison of simulated cooling energy demand peaks (with and without solar PV)
with historical electricity grid peaks using real time weather data in lieu of the climate
data applied in this project.
Longer Term Overview

Finally, this research has taken energy prices and climate data from a specific moment in
time. This can be criticised as incomplete in the context of long-term household planning.
Firstly, in recent years there have been significant changes to the prices of electricity and gas
in Australia, and there is extensive discussion about possible future leaps in energy prices.
Secondly, the effects of climate change are generally accepted and this may result in a
significant change in the degree heating and degree cooling hours for Victoria. A well

justified “climate change” climate file should be established for a theoretical 2030 and/or
2050. Many houses that are being renovated today will still be occupied in 2050. Developing
a deeper understanding of built fabric and equipment improvements for today and out to 2050
can provide homeowners with a more informed home quality improvement strategy.

6 Acknowledgements
It would not have been possible without the kind support and help of many individuals and
organizations to complete this project. We would like to extend our sincere thanks to all of
them as listed below for providing support, materials and information.
 CSIRO, especially Dr Dong Chen, for providing the AccuRate infiltration calculation
algorithm to assist us in creating all the SCRATCH files for simulations.
 Archicentre, especially Cameron Frazer, for providing the four typologies plans.
 Andrew Bell – Energy Efficiency Advisor of Alexander Watson Energy Efficiency,
for providing the prices for the building fabric improvements.
 Professor Terry Williamson of University of Adelaide for technical support and advice
on the ventilation algorithm of AccuRate.
 Staff of Energy Partners (especially Zhong Ran “Talent” Deng and Chun Yin Wu) and
of the University of Tasmania, School of Architecture and Design (especially Detlev
Geard and Maxim Tooker).
 Staff of Sustainability House (especially Sally Thompson) for the automated
simulations that made the consideration of thousands of EEM combinations possible.
Additionally key staff at Sustainability Victoria provided timely guidance and market
knowledge to keep this project targeted on the intended end users. In particular, comments
offered by Ian McNichol are denoted IM where they have been incorporated in this final
report.

7 Appendices
7.1 Four Typologies
7.1.1 Weatherboard cottage 1900s – 1940s
7.1.2 Inter-war house 1920s – 1940s

7.1.3 Double fronted brick veneer 1960s – 1970s
7.1.4 Estate style 1980s – 1990s

7.2 Definition of Baseline versions
Energy efficiency measures to be modelled Baseline Baseline Existing

Proposed Extension
1) Building fabric improvements
i. Insulation
1 Increase the level of insulation in ceilings NCC = R3.5 R1.0

Solar Absorptance 50%
2 Increase the level of insulation under the roof cladding Nil Nil
3 Increase the level of insulation in walls NCC = R1.5 except Nil

Solar Absorptance 50% garage
4 Increase the level of insulation in sub-floors NCC = R1.5 plus Nil plus carpet in
ii
carpet in bedrooms bedrooms only, tiles in
CSOG NCC = R0.0 , CSOG carpet in bedrooms only, tiles elsewhere only, tiles in wet areas, wet areas, others bare
others bare timber timber
ii. Window performance Single glazed clear in Single glazed clear in

(wherever permissible by Glazing Calculator or “Partial Compliance”)jj standard Al frame standard Al or timberkk
frame
5 Install low-e clear to existing single glazed windows
6 Install double glazed windows (12 mm air filled gap)
7 Install double glazed windows (12mm argon filled gap)
8 Install double glazed windows (12mm argon filled gap) in existing
iii. Air sealing
9 Install draught proofing around doors and windows, skirting boards, NCC Nilll
above fans or fireplaces.
2) Lighting Extensivemm Surface mounted

incandescent incandescent with
downlights to NCC fluorescent in kitchen
10 Install LED lighting instead of vented down lights in typical lighting plan NCC
3) Heating & Cooling MEPS ACnn with NCC MEPS ducted AC

ducts
11 Install a new/or upgrade the heating system
12 Zoning the heating system
13 Install a new/or upgrade the air-conditioning (cooling) system
4) Hot water systems MEPS electric MEPS electric storage

storageoo with NCC

pipe lagging
14 Install gas boosted solar hot water
15 Install efficient (instantaneous) gas hot water
5) Solar electricity generation
16 Install solar PV panels Nil Nil
Table 30 – Energy Efficiency Measures - Baseline
7.3 Definition Best Practice versions
Energy efficiency measures to be modelled Best Practice Best Practice

Proposed Extension Existing
1) Building fabric improvements
i. Insulation
1 Increase the level of insulation in ceilings NCC = R5.0 R6.0 (top up R5.0)pp
2 Increase the level of insulation under the roof cladding Foil under R 1.0 Nil
3 Increase the level of insulation in walls R2.5 plus foilqq R2.5rr (or cavity fill)ss
4 Increase the level of insulation in sub-floors R2.5 plus carpet in R2.5 plus carpet in
New CSOG with R1.0 under insulationtt bedrooms only, tiles in bedrooms only, tiles in
wet areas, others bare wet areas, others bare
timber timber
ii. Window performance

(wherever permissible by Glazing Calculator or “Partial Compliance”)
5 Install low-e clear to extension single glazed windows Generic Low-e Single glazed clear in
standard Al frameuu
6 Install double glazed windows (12 mm air filled gap)vv Generic DG air Single glazed clear in
standard Al frame
7 Install double glazed windows (12mm argon filled gap) Generic DG Low-e Single glazed clear in
argon in improved Al standard Al frame
frame
8 Install double glazed windows (12mm argon filled gap) in existingww Generic DG Low-e Generic DG Low-e
argon in improved Al argon in improved Al
frame frame
iii. Air sealing
9 Install draught proofing around doors and windows, skirting boards, NCC NCC
above fans or fireplaces.
2) Lighting
10xx Install LED lighting instead of vented down lights in typical lighting plan Surface mounted LED Surface mounted LED
except kitchen except kitchen

3) Heating & Cooling
11 Install a new/or upgrade the heating system 5-star gas with R3.0 5-star gas with R3.0
ducts unzoned ducts unzoned
12 Zoning the heating system 5-star gas with R3.0 5-star gas with R3.0
ducts zoned ducts zoned
13 Install a new/or upgrade the air-conditioning system 5-star RCAC with R3.0 5-star RCAC with R3.0
ducts zoned ducts zoned
4) Hot water systems
14 Install solar hot water Median for VICyy N.A.zz
15 Install efficient gas hot water 6-star instantaneous 6-star instantaneous
5) Solar
16 Install solar PV panels 1.5 kW at 15% eff’yaaa As required
Table 31 – Energy Efficiency Measures – Best Practice

7.4 Usage Profile
Zone Type: Living

Heating Cooling
Sensible Internal Latent Internal Thermostat Thermostat
Heat Gain (W) Heat Gain (W) Settings (°C) Settings (°C)
Schedule
No.
Hour 1 2 3 1 2 3 1 2 3 1 2 3
1 0 0 0 0 0 0 0 0 0 0 0 0
2 0 0 0 0 0 0 0 0 0 0 0 0
3 0 0 0 0 0 0 0 0 0 0 0 0
4 0 0 0 0 0 0 0 0 0 0 0 0
5 0 0 0 0 0 0 0 0 0 0 0 0
6 0 0 0 0 0 0 0 0 0 0 0 0
7 0 0 0 0 0 0 0 0 0 0 0 0
8 64 64 64 20 20 20 20 20 20 24 0 24
9 64 64 64 20 20 20 20 20 20 24 0 24
10 20 0 20 10 0 10 20 0 20 24 0 24
11 20 0 20 10 0 10 20 0 20 24 0 24
12 20 0 20 10 0 10 20 0 20 24 0 24
13 20 0 20 10 0 10 20 0 20 24 0 24
14 20 0 20 10 0 10 20 0 20 24 0 24
15 20 0 20 10 0 10 20 0 20 24 0 24
16 20 0 20 10 0 10 20 0 20 24 0 24
17 20 0 20 10 0 10 20 0 20 24 0 24
18 71 0 71 15 0 15 20 0 20 24 0 24
19 71 71 71 15 15 15 20 20 20 24 24 24
20 71 71 71 15 15 15 20 20 20 24 24 24
21 71 71 71 15 15 15 20 20 20 24 24 24
22 71 71 71 15 15 15 20 20 20 24 24 24
23 0 0 0 0 0 0 20 20 20 24 24 24
24 0 0 0 0 0 0 20 20 20 24 24 24
1: NatHERS Rating Standard
Schedule No
2: Away During the Day
Define:
3: Always Home
Thermostat = 0 means the system is Off.

Zone Type: Kitchen/Living

Heating Cooling
Schedule
No.
Hour 1 2 3 1 2 3 1 2 3 1 2 3
1 100 100 100 0 0 0 0 0 0 0 0 0
2 100 100 100 0 0 0 0 0 0 0 0 0
3 100 100 100 0 0 0 0 0 0 0 0 0
4 100 100 100 0 0 0 0 0 0 0 0 0
5 100 100 100 0 0 0 0 0 0 0 0 0
6 100 100 100 0 0 0 0 0 0 0 0 0
7 100 100 100 0 0 0 0 0 0 0 0 0
8 600 600 600 323 323 323 20 20 20 24 0 24
9 300 300 300 123 123 123 20 20 20 24 0 24
10 163 100 163 61 0 61 20 0 20 24 0 24
11 163 100 163 61 0 61 20 0 20 24 0 24
12 163 100 163 61 0 61 20 0 20 24 0 24
13 163 100 163 61 0 61 20 0 20 24 0 24
14 163 100 163 61 0 61 20 0 20 24 0 24
15 163 100 163 61 0 61 20 0 20 24 0 24
16 163 100 163 61 0 61 20 0 20 24 0 24
17 163 100 163 61 0 61 20 0 20 24 0 24
18 318 100 318 92 0 92 20 0 20 24 0 24
19 1318 1318 1318 692 692 692 20 20 20 24 24 24
20 468 468 468 92 92 92 20 20 20 24 24 24
21 468 468 468 92 92 92 20 20 20 24 24 24
22 468 468 468 92 92 92 20 20 20 24 24 24
23 100 100 100 0 0 0 20 20 20 24 24 24
24 100 100 100 0 0 0 20 20 20 24 24 24
Schedule No
Define:
3: Always Home

Zone Type: Bedroom

Heating Cooling
Schedule
No.
Hour 1 2 3 1 2 3 1 2 3 1 2 3
1 44 44 44 22 22 22 15 15 15 24 24 24
2 44 44 44 22 22 22 15 15 15 24 24 24
3 44 44 44 22 22 22 15 15 15 24 24 24
4 44 44 44 22 22 22 15 15 15 24 24 24
5 44 44 44 22 22 22 15 15 15 24 24 24
6 44 44 44 22 22 22 15 15 15 24 24 24
7 44 44 44 22 22 22 15 15 15 24 24 24
8 0 20 20 0 22 22 18 18 18 24 0 24
9 0 20 20 0 22 22 18 18 18 24 0 24
10 0 0 20 0 0 22 0 0 18 0 0 24
11 0 0 20 0 0 22 0 0 18 0 0 24
12 0 0 20 0 0 22 0 0 18 0 0 24
13 0 0 20 0 0 22 0 0 18 0 0 24
14 0 0 20 0 0 22 0 0 18 0 0 24
15 0 0 20 0 0 22 0 0 18 0 0 24
16 0 0 20 0 0 22 0 0 18 0 0 24
17 0 0 20 0 0 22 18 0 18 24 0 24
18 0 0 20 0 0 22 18 0 18 24 0 24
19 0 0 20 0 0 22 18 18 18 24 24 24
20 20 20 20 0 0 22 18 18 18 24 24 24
21 20 20 20 0 0 22 18 18 18 24 24 24
22 20 20 20 0 0 22 18 18 18 24 24 24
23 64 64 64 22 22 22 18 18 18 24 24 24
24 44 44 44 22 22 22 18 18 18 24 24 24
Schedule No
Define:
3: Always Home

7.5 List of Indicative Simulations for Steady State Peak

Heating and Cooling
Baseline / All Measures Best West Facing Window

Typology Orientation Climate Zone Practice Total Area (m²)
Baseline 11.18
NCC 4
All Measures Best Practice 12.81
Baseline 11.54
Pre-War South yard NCC 6
Baseline 11.14
NCC 7
Baseline 11.54
NCC 4
Baseline 11.14
Inter-War North yard NCC 6
Baseline 11.54
NCC 7
Baseline 11.18
NCC 4
Baseline 11.54
DFBV North yard NCC 6
Baseline 11.14
NCC 7
Baseline 11.54
East yard NCC 4
Baseline 11.14
Estate West yard NCC 6
Baseline 11.54
East yard NCC 7

7.6 Solar Hot Water System analysis
In order to understand the savings to be made when installing a solar water heater or a 5 star
gas water heater the amount of hot water used for households of different sizes is needed.
There are a range of discussions in the literature but there is no clear method.
A model of hot water use based on the levels specified in AS/NZS 4234 was developed. It is
based on the estimated consumption of the average household (2.8 persons) using
approximately 126 litres of hot water/day raised by 45K (from 15°C to 60°C) which is24
MJ/daybbb, and a five person household using approximately 200 litres (38 MJ/day) being the
medium load from AS/NZS 4234.
The model is linear with consumption varying proportionally with occupancy, as described in
Equation 4. This produces the results in Table 32
( )
Equation 4
Occupantsccc 1 2 3 4 5 6 7 8
HW litres raised 65 99 133 167 201 235 269 303
by 45K
Qave MJ/day 12.3 18.7 25.1 31.6 38.0 44.4 50.8 57.3
Qpeakddd MJ/day 13.6 20.7 27.8 34.9 42.0 49.1 56.2 63.3
Table 32 – Hot water consumption vs occupant number (consumption in Litres, Average Energy per day and in Peak Energy
per day)
The water heater most likely to be installed in a Victorian home by a builder is a four star gas
storage water heater. The calculation of the Annual Energy Saving using AS/NZS 4234 is
based on a comparison with a three star gas water heater. Consequently, for this analysis the
Annual Energy Consumption for both three star and four star gas water heaters are required.
The Annual Energy Consumption (AE) of a gas storage water heater is given by Equation 5
beloweee.
[ ( ) ]
Equation 5
Where
AE= Annual energy consumption (MJ/year)

WD = Daily water heat content added (MJ/day)
E = Thermal efficiency (%)
R = Gas consumption (MJ/h)
M = Maintenance rate (MJ/h)

Maintenance
Product Gas Thermal gas
class consumption efficiency consumption
MJ/h % MJ/h
3 Star
28 82.4 1
storage
4 Star
24 84 0.8
Storage
Table 33 –Three and four star gas storage water heater parameters, consistent with gas consumption listed for those ratings
Using the parameters in Table 33 the gas consumed by a three and four Star Gas Storage
water heater is calculated by Equation 5 is given in Table 34
Occupants
1 2 3 4 5 6 7 8
litres/day 65 99 133 167 201 235 269 303
Hot water MJ/day 12.3 18.7 25.2 31.6 38.0 44.4 50.9 57.3
consumption
MJ/year 4,489 6,837 9,186 11,535 13,883 16,232 18,580 20,929
Gas used MJ/year 14,010 16,756 19,503 22,249 24,996 27,742 30,489 33,235
Gas used MJ/year 12,170 14,871 17,572 20,273 22,974 25,675 28,375 31,076
Table 34 – Gas consumed by 3 and 4 star gas storage water heater vs occupancy
7.6.1 Gas Consumed By a Solar Hot Water System

AS/NZS 4234 gives a method to evaluate the savings of a solar water heater. This method
has been used to estimate the savings for solar water heaters to be eligible for rebates in
Victoria up until early 2013. The data for all water heaters listed has been analysed and those
models that have been installed in the last 2 years of the rebate program have been used to
calculate the likely savings compared to a three star gas water heater over a range of hot water
loads, relating to occupant numbers. The average solar water heater savings in Zone 4
(Southern Victoria) was 75% for the AS/NZS4234 ‘small’ load, approx. 120 litres/day, and
68% for the AS/NZS4234 ‘medium’ load, approx. 200 litres/day.
Some solar water heaters had performance estimates for both small and medium loads. These
were used to estimate the reduction in solar contribution of solar water heaters (% saving) as
more hot water was withdrawn. The reduced solar contribution was on average 10 percentage
points from the small load to the medium load. Whilst the percentage saved decreased, the
actual energy saved increased as the load also increased more, i.e. at higher load the energy
saved is a smaller percentage of a larger figure. Using the two loads available, a relationship
was estimated between the number of occupants and the energy saved. Table 35 and Figure
30 show the results of this calculation. For the purposes of this study it was assumed that the
same average solar water heater was installed in all homes. This will lead to a higher cost
incurred in homes with less occupants but as the installation cost is a significant part of the

total installed cost it is unlikely to be a large consideration. Additionally, many home owners
may install a larger system than their current needs which will also provide greater running
cost savings. Note that some solar water heaters will also use a small amount of electricity.
This is included in the energy used, however, as it is very small compared to the gas
consumption it is not separately accounted for.
Occupants
1 2 3 4 5 6 7 8
litres/day 65 99 133 167 201 235 269 303
Hot water
MJ/day 12.3 18.7 25.2 31.6 38.0 44.4 50.9 57.3
consumption
MJ/year 4,489 6,837 9,186 11,535 13,883 16,232 18,580 20,929
Gas used MJ/year 14,010 16,756 19,503 22,249 24,996 27,742 30,489 33,235
Gas used MJ/year 12,170 14,871 17,572 20,273 22,974 25,675 28,375 31,076
Solar water heater
Savings% c.f. 3 star 85% 81% 77% 73% 68% 64% 60% 56%
Gas consumed MJ/year 2,091 3,184 4,583 6,119 7,999 9,987 12,195 14,623
Gas saved
c.f. 4 Star MJ/year 10,080 11,687 12,989 14,154 14,975 15,687 16,180 16,453
Table 35 – Gas used by a solar water heater vs occupancy
Gas used v's Occupancy

35
30
25
M J / Year ( '000s)
20
4 Star Gas Heater
15 Gas saved SWH
10 Gas Used SWH
0
1 2 3 4 5 6 7 8
Occupants
Figure 30 – Gas used by water heaters and saved by solar vs number of occupants (Gas saved is the difference in
consumption of the solar water heater and the four star gas water heater.)

7.6.2 Performance in Northern Victorian compared to Southern Victoria

The northern part of Victoria has a better solar climate than the southern part of Victoria. It is
generally considered that the Great Dividing Range is the boundary between the performance
zones and AS/NZS4234 divides between Zone 3 (Nth Victoria and NSW) and Zone 4
(Southern Victoria and Tasmania) at about that line.
The improved performance due to the clearer skies inland has been estimated by comparing
the number of Small Technology Certificates (STCs) created for the same product for Zone 4
and Zone 3 from the Clean Energy Regulator (CER) listing. It was established that the
increase in performance is approximately 13%. Consequently savings attributable to a solar
water heater were increased by 13% for the Northern region of Victoria and the Mildura area.
7.6.3 6-Star Gas Instantaneous Water Heater Consumption

The performance of a six star instantaneous gas water heater has been estimated based on the
performance of a six star gas water heater with the following features.
Electric Fan power 70 W

Fan run on after water stops flowing 30%
Standby 5 W
HW Flow rate 6 l/min
Note that electricity is consumed in a high efficiency gas instantaneous water heater;
 To operate the control system, a constant consumption, and
 To operate the forced combustion fan when the water is being heated, a variable
consumption.
The consumption of a 6 star instantaneous gas water heater and the savings compared to a 4
star storage gas water heater are show in Table 36.
Occupants
1 2 3 4 5 6 7 8
6 star gas
Gas saved MJ/yr 3599 3811 4023 4235 4447 4659 4871 5083
Electricity consumed kWh/yr 49 52 55 58 61 64 67 70
Table 36 – Annual savings and consumption of a 6-Stars gas instantaneous water heater vs occupancy
7.6.4 Cost of Solar Water Heaters

The data from the SV SHW rebate program was analysed to calculate the cost of supply and
installation of solar water heaters over the final 2 years of the program. There were 1716
individual installations over this period. The supply cost, rebate and support from VEET and
RET was separately listed. As the installation during renovation will generally qualify for

VEECs and STCs the savings to the householder from these were included. The average
price was $3577 and the average installation cost was $1687, a total of $5264.
The cost of supply of all models that had more than 5 installations was analysed. There were
1040 installations where the model was installed 5 or more times in the 2 year period. The
relationship between solar savings and supply costs were analysed see Figure 31Figure 5
below. There is no significant relationship between the % solar savings and the supply cost of
the appliance.
Solar savings (med. load) vs supply cost of solar

water heaters
100%
Pertcentage Savings
80%
60%
40%
20%
0%
$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000
Supply Cost
Figure 31 - Relationship between solar savings and supply costs
Consequently, it is reasonable to use an average price and average savings in the model
developed for this project.
7.6.5 Cost of Gas Water Heaters

The cost of supply and installation of gas water heaters has been estimated from prices
available from a variety of sourcesfff.
A four star storage water heater supply and install costs vary between $1940 and $2140, so
the total cost used for the base case is the average $2040). It is assumed that the existing gas
supply pipe will be sufficient to supply the new water heater.
The cost to supply and install a 6 star instantaneous gas water heater often requires upgrading
the gas supply as the existing gas pipe is insufficient to provide the amount of gas needed to
these appliances. So the average total cost of the high efficiency gas option is $2735.
7.6.6 Operating Life of Water Heaters

The best information on life of water heaters is given in the BIS Schrapnel reports on
appliances replaced. The results from the 2008, 2010, and 2012 surveys are given in their
report of 2012 (see Table 37 below). It indicates that solar water heaters last 28% longer than

gas storage water heaters. Gas instantaneous water heaters last 2% longer than gas storage
water heaters.
This difference in life is accounted for in the levelised cost of energy calculation by adding
that percentage to the cost of the gas storage water heater to account for the cost from the next
system purchased whilst the longer life system is still operating.
Year Reported Total Electric Storage Gas Storage Gas Instant Solar
2012 12.6 12.7 12.0 12.6 14.8
2010 12.8 12.8 12.2 12.3 17.7
2008 12.9 13.2 12.4 12.4 14.4
Average 12.8 12.9 12.2 12.4 15.6
Table 37 – The age of replaced water heatersggg
7.6.7 Energy Costs

Energy prices vary across the state and vary by time of use.
Gas has peak and off peak seasonally and Electricity is consumed predominantly as a single
or two part tariffs. For this analysis the marginal energy prices produced by Energy Consult
for SV in 2013 have been used. Electricity prices have been increased by 3.7% and gas prices
have been increased by 4.9% to account for recent price changes. This gives current prices
(but SV needs to ensure regular updating of its intended website to keep these values current
in future years).
The energy saved by implementing the measures in this study is costed at the marginal prices
relevant for the times that the technologies are active.
The marginal cost of electricity on a single rate tariff is the average electricity price. This is
27.48 cents/kWh for Metropolitan areas and 29.96 cents/kWh for Regional Victoria.
Metropolitan Regional Vic

Two Time Two Time Of
Single Single
Rate Of Use Rate Use
Peak c/kWh 27.48 27.48 35.55 29.96 30.50 35.28
Off-Peak c/kWh 16.84 17.10 17.76 19.14
Table 38 – Electricity prices by region (after EnergyConsult 2013)
Gas prices are more complex as there are a number of price steps, which are different in peak
periods (June to October) and non-peak periods. Consequently, the marginal prices vary
depending on seasonal use profile and the amount of gas used. EnergyConsult has provided
marginal gas prices for small, medium and large gas using households. The marginal gas
prices are given in Table 39 – Marginal gas prices 2014 by household size and region (after
EnergyConsult 2013)Table 39 below, updated to 2014.

Metropolitan Regional Vic Mildura

Small Medium Large Small Medium Large
Average Marginal Winter c/MJ 1.70 1.47 1.47 1.79 1.60 1.60 2.69
Average Marginal Summer c/MJ 1.81 1.54 1.49 1.80 1.62 1.62 3.45
Solar savings Price c/MJ 1.77 1.52 1.48 1.80 1.61 1.61 3.22
Gas savings price* c/MJ 1.75 1.51 1.48 1.80 1.61 1.61 3.07
 Gas saved at the average of summer and winter marginal rates
Table 39 – Marginal gas prices 2014 by household size and region (after EnergyConsult 2013)
The gas prices in Mildura are different from the rest of Victoria in that there is no change
from summer to winter. As it is a two block tariff the summer marginal price will be within
the first (highest price block). The winter marginal price is made up of 60% of the second
block and 40% of the first block price consistent with the Energy Consult study.
For this analysis, households of
 1 and 2 persons will use the prices for Small,

 3 persons - the mean of Small and Medium marginal prices,
 4 and 5 persons - Medium prices and
 6 or more person households - Large prices.
7.6.8 Seasonal Savings of Gas

As gas prices vary seasonally (peak 1 June to 30 October) the savings of gas from solar water
heaters across the seasons is required to evaluate savings. The savings will be predominantly
in summer and 70% of the savings occur in off peak months and 30% in peak months. So the
marginal savings for a solar water heater will be 70% ‘summer prices and 30% winter prices
(shown in Table 39 above).
Gas saved by using the more efficient 5 star gas water heater will be at the average of the
marginal summer and winter prices. (See Table 39)
7.6.9 Annualised Cost

Annualised cost is a method to compare products that have different capital cost, running
costs and lifetimes. It has been used by GWA (2010)hhh
The annualised cost is the total present value of the costs of a water heater divided by the
expected life of the water heater. It equalizes the differences in service lifetimes of different
technologies using an Internal Rate of Return (equivalent to a discount rate). The annualised
energy charges are the average projected energy cost over the service life of the water heater,
calculated by multiplying the projected energy tariff (c/MJ) by the energy consumed (MJ/yr)
by a water heater of that type to deliver the estimated hot water load requirement for the
household.

( )
Equation 6
Annualised costs are plotted below. The figures indicate that at solar water heater has the
lowest annualise cost, and that the two gas options are effectively the same cost on an
annualised basis, except in Mildura where the six star water heater is always the more
economical option of the gas water heaters, due to higher gas prices.
Metro Annualised Cost

700
650
600
550
500
450
400
350
300
1 2 3 4 5 6 7 8
Occupants
Figure 32 – Annualised cost of using each of the three options - Metro Area
Regional-North Annualised Cost

700
650
600
550
500
450
400
350
300
1 2 3 4 5 6 7 8
Occupants

Figure 33 – Annualised cost of using each of the three options – Regional- North Area
Regional-South Annualised Cost

700
650
600
550
500
450
400
350
300
1 2 3 4 5 6 7 8
Occupants
Figure 34 – Annualised cost of using each of the three options - Regional - South Area
Mildura Annualised Cost

1200
1100
1000
900
800
700
600
500
400
300
1 2 3 4 5 6 7 8
Occupants
Figure 35 – Annualised cost of using each of the three options - Mildura Area
7.6.10 Discount Rate

The discount rate used is calculated from the energy escalation rate, the inflation rate and the
mortgage rate used to finance the new water heater, assuming that a mortgage redraw is used
to fund the complete renovation cost. The discount rate calculate as
( ) ( )
)
Equation 7

The figures used in the spreadsheet are given in Table 40 below
Energy escalation 6.0%

Inflation rate 1.0%
Mortgage rate 6.0%
Consequent Discount Rate 1.0%
Table 40 – Rates used to calculate the discount rate

All of the evaluation of comparative savings from different water heaters presented above
requires the fuel cost to be estimated over the life of the water heater. An alternative method
to evaluate if a more efficient water heater is a worthwhile investment is to estimate the
energy saved over the lifetime of the system and divide that by the difference between the
purchase and installation costs of the comparative systems adjusted for the difference in life.
( )
( )
Equation 8

Comparison of water heating with the 4 star storage
Occupants
1 2 3 4 5 6 7 8
Regional-South 0.016 0.014 0.012 0.011 0.011 0.010 0.010 0.010
Solar with
Regional-North 0.014 0.012 0.011 0.010 0.009 0.009 0.009 0.009
Gas
Boosting Metro 0.016 0.014 0.012 0.011 0.011 0.010 0.010 0.010
Mildura 0.014 0.012 0.011 0.010 0.009 0.009 0.009 0.009
Table 41 – Cost of energy saved $/MJ compared to 3 star gas storage water heater
This method of analysis also indicates that the cost of saving energy by buying and installing
a gas boosted solar water heater or a 6 star gas water heater when compared to the purchase
and installation of a four star gas water heater is almost always lower than the cost of
purchasing gas at current prices. This is especially apparent in homes where there are three or
more occupants.
Given that gas prices are likely to increase in the future this will mean that solar and high
efficiency gas water heaters will become even more cost effective over time.

7.6.12 Results Table

Occupants
1 2 3 4 5 6 7 8
litres/day 65 99 133 167 201 235 269 303
Hot water
consumption MJ/day 12.29 18.72 25.15 31.58 38.01 44.44 50.87 57.3
MJ/Yr 4489 6837 9186 11535 13883 16232 18580 20929
Gas used MJ/year 12170 14871 17572 20273 22974 25675 28375 31076
Metro 229 280 319 355 402 427 472 517
Regional-North 226 276 319 361 409 443 489 536
$/yr cost
Regional-South 226 276 319 361 409 443 489 536
Mildura 392 479 566 653 740 827 914 1001
Metro 382 430 466 500 544 568 610 652
$/yr 379 425 466 505 550 582 626 669
Regional-South
Mildura 534 616 697 779 860 942 1023 1105
Solar water heater
Savings% South Compared to 4 83% 79% 74% 70% 65% 61% 57% 53%
star gas water
Saving % North heater% 96% 90% 85% 80% 75% 70% 65% 61%
Gas saved South MJ/yr 10080 11687 12989 14154 14975 15687 16180 16453
Gas Saved North MJ/yr 11629 13452 14928 16251 17185 17996 18558 18872
Metro 190 220 227 248 262 261 269 274
Regional-North 219 253 261 284 301 300 309 314
$/yr Saved
Regional-South 187 217 231 252 267 271 279 284
Mildura 374 434 481 524 554 580 598 609
Metro 374 393 422 436 466 491 525 562
$/yr 373 392 419 438 469 496 531 570
Regional-South
Mildura 353 379 415 456 509 565 628 699
6 star gas
Gas saved MJ/yr 3599 3811 4023 4235 4447 4659 4871 5083
Elect. consumed kWh/yr 49 52 55 58 61 64 67 70
Metro 54 57 55 58 61 60 63 65
Regional-North 52 55 55 58 61 61 64 67
$/yr Saved
Regional-South 52 55 55 58 61 61 64 67
Mildura 101 107 113 119 125 131 137 143
Metro 384 429 468 498 540 564 604 644
$/yr 383 427 468 504 546 578 619 660
Regional-South
Mildura 493 569 644 720 796 872 948 1024
Table 42 – Performance of gas boosted solar and six star gas compared to a four star storage gas water heater

7.6.13 Summary
 Gas boosted solar water heaters are always more cost effective than a four star gas
water heater.
 High Efficiency six star gas water heaters are as cost effective or better than four star
gas water heaters, especially so in households with higher hot water use and in regions
where gas prices are higher.
 An average gas boosted solar water heater will save 53% in large (8 occupant)
households to 83% in Small (single occupant) households gas compared to a four star
gas water heater in Southern Victoria. It will save more in Northern Victoria.
Based on Annualised costs;
 Gas boosted solar water heaters are always the most cost effective option
For all of Victoria;
 The money a householder needs to invest to save a MJ of gas is equivalent to, or less
than, the current cost of gas for both a gas boosted solar water heater and a six Star
instantaneous gas water heater when compared to a four star water heater. These
options are always less expensive in homes where there are three or more occupants

7.7 Performance Analysis of Solar Photovoltaic Systems
7.7.1 Electricity Consumption

Electricity consumption will be impacted by the energy efficiency measures implemented
within the renovation. However in order to have an indication of the range of electricity
consumption the government website EnergyMadeEasyiii was consulted. That website gives
daily and total electricity consumption by season for a range of occupants. This is shown in
Table 43 below. The relationship between occupancy and electricity use is shown in Figure
36. It follows the linear equation below:
( )
Equation 9
Occupants
1 2 3 4 5 6 7 8
Summer 9.2 11.6 14 16.4 18.8 21.2 23.6 26
Daily Autumn 9.1 11.9 14.6 17.4 20.2 23 25.8 28.5

Electricity
Winter 12.4 14.8 17.1 19.5 21.8 24.2 26.5 28.9
consumption
kWh/day Spring 11.9 14.3 16.8 19.3 21.7 24.2 26.6 29.1
Average 10.65 13.15 15.625 18.15 20.625 23.15 25.625 28.125
Summer 841 1059 1277 1495 1714 1932 2150 2368
Seasonal Autumn 828 1081 1335 1587 1842 2096 2350 2603
Electricity
Winter 1133 1347 1562 1776 1991 2205 2420 2634
consumption
kWh/yr Spring 1085 1309 1533 1757 1981 2204 2428 2652
Total Load 3887 4796 5707 6615 7528 8437 9348 10257
Table 43 – Victorian electricity consumption vs occupancy

12000
Annual Electricity Consumption

10000
8000
kWh/yr
6000
4000
2000
0
0 1 2 3 4 5 6 7 8
Household occupancy
Figure 36 – Electricity consumption vs occupancy for Victoria
7.7.2 System Size

According to Sunwiz, the overall average system size for PV systems installed in Victoria is
2.4 kWjjj. This is similar to the average across all Australia. However, as feed in tariffs have
reduced to generally less than 1/3 of the retail cost of electricity, the financial optimum sizing
has reduced. Moysekkk states that ‘export percentage (the portion of energy sent out to the
grid) is now one of the major determinant of payback times’ and ‘when it comes to getting the
best return on your investment in PV, smaller seems to be increasingly better’. Gilllll
indicates that for household use of 12kWh/day the financially optimum array size is approx. 1
kW and for 20kWh/day it is 1.6 kW.
Consequently, this analysis will consider an array size of approximately 1.5 kW (The array
must be made up of a number of full modules. In this case 7 of the modules chosen gives a
nominal capacity of 1.50563 kW) as this will result in a large proportion of the energy
produced being used on site. That means it will displace the purchase of electricity at a price
of 27.5 to 30 cents/kWh rather than exporting it to receive income of 8 cents/kWh.
7.7.3 Performance Calculation

The NREL SAMmmm calculation methodology was used to evaluate the solar electricity
available from a 1.5 kW system. SAM has weather data available for Melbourne,
Tullamarine, Ballarat and Mildura.
The modelling included a tilt of 25 degrees from horizontal and was undertaken facing North,
North East and North West.

The electrical load from the household is required to estimate the percentage exported. The
profile in Figure 37 was scaled to give the seasonal loads representative of Victorian
households as shown Table 43nnn.
Hourly household load profile shape

0:00
1:00
2:00
3:00
4:00
5:00
6:00
7:00
8:00
9:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
Figure 37 – Hourly household load profile shape which was scaled to give the seasonal totals shown in Table 43
The model included standard products available from the SAM database of product
performance.
The main components included in the model were chosen to be representative of a good
quality PV system. They were;
 PV Module - Suntech Power PLUTO215-Udm, Material - Multi-c-Si, Efficiency -

14.6%
 PV Array – 7 modules/string, Nameplate capacity - 1.50563 kW
 Inverter - Gefran: APV 1700-2M-TL-US (240V) 240V [CEC 2011], Efficiency – 96%
7.7.4 Electricity Produced

The electricity produced from the PV system at the different climate zones is shown in Figure
38.

PV Generation
3,000
2,500
Generation kWh/year
2,000
1,500
1,000
500
-
Tullamarine Ballarat Melbourne Mildura
Generation 2,169 2,188 1,982 2,521
Figure 38 – PV generation by location
It can be seen that the Generation in Tullamarine is midway between Melbourne (3.7% lower)
and Ballarat (3.8% higher). The generation in Mildura is 19.8% higher than Tullamarine
Consequently Northern Victoria is modelled using Mildura data and Tullamarine data is used
for Southern Victoria.
7.7.5 Electricity Used On Site and Exported

As the cost of purchasing electricity from the grid is higher than the price paid for electricity
exported from the site to the grid, the greater amount used on site the better the financial
return from the system. Consequently there is a reduced financial benefit from the PV system
as the dwelling becomes more efficient. As this is a complex interaction and will depend on
the electricity consumed by other appliances and particularly the daily electricity consumption
profile, a constant profile has been used and scaled to meet the seasonal loads. Note that the
savings made by implementing energy efficiency measures in the household are not
accounted for in the spreadsheet calculations.
Figure 39 and Figure 40 illustrate this for Tullamarine.

Tullamarine
2,500
PV generated kWh/yr 2,000
1,500
1,000
500
-
0 2000 4000 6000 8000 10000 12000
exported Saved Total
Figure 39 – PV generated electricity consumed on site (saved) and exported
Tullamarine
$600
PV impact on bills
$500
$400
$ / yr
$300
$200
$100
$-
0 2000 4000 6000 8000 10000 12000
$ saved $ earned $ total
Figure 40 – The impact on electricity bills from PV generation
7.7.6 Non-North Orientation

Whilst the model to be used in the spreadsheet is to use the four cardinal points as the
directions that the house, and by implication the PV system could face, it is possible that in a
real situation the PV system could be as far as 45 degrees from North even if placed on the
most Northerly facing roof available. Consequently, a sensitivity analysis was undertaken to
gauge the impact of orientation on output from NE to NW. All calculations are for 25 degree
tilt. The results are shown in Table 44:

Location Direction Energy kWh/year Percentage of North facing output

Nth 1981 100.0%
Melbourne NE 1924 97.1%
NW 1862 94.0%
Nth 2521 100.0%
Mildura NE 2514 99.7%
NW 2299 91.2%
Nth 2167 100.0%
Tullamarine NE 2098 96.7%
NW 2029 93.6%
Nth 2188 100.0%
Ballarat NE 2178 99.5%
NW 2022 92.4%
Table 44 – Variation in PV output from NE to NW in 4 Victorian locations
It can be seen that the reduction in output from Non-North orientation is significantly less for
North East misalignment than North West. The reduction for NE is a maximum of 3.3% in
Melbourne. In Mildura it is insignificant, 0.3%. By contrast the reduction for NW is greater
for Mildura than other locations at 8.8%. This may be related to cloud cover differences
between morning and afternoon, but will also be impacted by the higher diurnal temperature
swing in inland sites leading to higher afternoon temperatures compared to morning
temperatures. Unlike Solar hot water, PV output decreases with temperature. Typical
temperature coefficients are 0.5%/K reduction.
7.7.7 Cost of PV System

The costs of PV systems have reduced significantly over the recent past due firstly to high
volumes of sales following attractive feed in tariffs and recently due to increased production
and lowering of sales growth leading to a more competitive market.
In order to have a realistic price, a provider of quality systems was approached in November
2013. They suggested the appropriate range for a 1.5 kW system ‘should be $3000-$4000’ but
said that ‘There will always be someone out there doing it for less’. They also suggested that
a realistic cost for a tilt frame was $500.
From current advertising offers it seems that prices in the order of $2500 - $3000 are
available. Consequently, the model used a capital cost (purchase and installation) of $3000
with an additional cost of $500 should the roof be flat or if there is insufficient space for both
a solar water heater (~5m2) and a PV system (~10 m2) on the north facing roof.
7.7.8 Cost of Energy Produced

The cost of energy produced is calculated in the same manner as for the cost of energy saved
for solar water heating system. That is the total upfront cost divided by the total energy

generated by the PV system. The total energy generated was assumed to be over a twenty
year lifetime. Note that many systems have a longer lifetime, however, twenty years was
chosen as generation often reduces over the lifetime of the system. The results are given in
Table 45
Region Installed on Nth facing Installed on flat roof or where a

sloping roof rack is required to face North
Southern Victoria $ 0.077 $ 0.090
Northern Victoria $ 0.060 $ 0.070
Table 45 Cost of electricity produced

calculation. However, a 1.5 kW PV system results in savings compared to sourcing electricity
from the grid so the annual expenditure is negativeooo. Consequently as the savings from the
PV in these cases is less than the annualised cost of purchase and installation the annualised
figure is a benefit not a cost. If the cost of PV increased or the cost of grid power decreased
or the percentage exported at a low feed in tariff increased, then this could be a negative
figure.
Annualised savings are given in Table 46:
Occupants 1 2 3 4 5 6 7 8
Load 3886 4808 5691 6613 7526 8440 9355 10253
Tullamarine $207 $237 $263 $287 $ 309 $328 $344 $358
$/year
Mildura $ 275 $314 $349 $383 $414 $442 $466 $ 486
Melbourne $ 180 $207 $230 $252 $272 $288 $303 $314
Table 46 – Annualised savings by location and Household size/load

7.7.10 Results Table

Occupants 1 2 3 4 5 6 7 8
Load kWh/yr 3886 4808 5691 6613 7526 8440 9355 10253
Tullamarine 2,169 kWh/year
exported 1,030 859 711 572 446 339 247 172
imported -2,747 -3,499 -4,234 -5,017 -5,803 -6,611 -7,433 -8,256
Saved 1,139 1,309 1,457 1,597 1,723 1,829 1,921 1,997
Export % 47% 40% 33% 26% 21% 16% 11% 8%
self-use % 53% 60% 67% 74% 79% 84% 89% 92%
$ saved $312.92 $359.91 $400.49 $438.84 $473.52 $502.76 $528.04 $548.89
$ earned $82.41 $68.73 $56.92 $45.76 $35.66 $27.15 $19.79 $13.72
$ total $395.33 $428.64 $457.41 $484.60 $509.18 $529.91 $547.83 $562.61
Ballarat 2,188 kWh/year
exported 1003 826 676 537 411 307 216 143
imported -2701 -3445 -4179 -4962 -5749 -6559 -7383 -8209
Saved 1,185 1,363 1,512 1,652 1,777 1,881 1,972 2,045
Export % 46% 38% 31% 25% 19% 14% 10% 7%
self-use % 54% 62% 69% 75% 81% 86% 90% 93%
$ saved $355.07 $408.22 $452.95 $494.85 $532.37 $563.65 $590.75 $612.64
$ earned $80.25 $66.05 $54.11 $42.92 $32.90 $24.55 $17.31 $11.47
$ total $435.32 $474.28 $507.06 $537.77 $565.28 $588.20 $608.07 $624.11
Melbourne 1,982 kWh/year
exported 920 765 633 509 397 303 221 154
imported -2824 -3592 -4343 -5141 -5941 -6761 -7594 -8425
Saved 1,062 1,217 1,348 1,473 1,585 1,679 1,761 1,828
Export % 46% 39% 32% 26% 20% 15% 11% 8%
self-use % 54% 61% 68% 74% 80% 85% 89% 92%
$ saved $291.76 $334.35 $370.53 $404.80 $435.58 $461.41 $483.90 $502.40
$ earned $73.59 $61.20 $50.67 $40.69 $31.73 $24.22 $17.67 $12.28
$ total $365.36 $395.55 $421.20 $445.49 $467.31 $485.62 $501.57 $514.69
Mildura 2,521 kWh/year
exported 1296 1098 920 749 591 451 331 231
imported -2661 -3385 -4091 -4842 -5595 -6370 -7165 -7964
Saved 1,224 1,423 1,600 1,772 1,930 2,070 2,190 2,290
Export % 51% 44% 37% 30% 23% 18% 13% 9%
self-use % 49% 56% 63% 70% 77% 82% 87% 91%
$ saved $367 $426 $479 $531 $578 $620 $656 $686
$ earned $104 $88 $74 $60 $47 $36 $26 $18
$ total $471 $514 $553 $591 $626 $656 $683 $705

Regional South 2169 kWh/year

exported 1030 859 711 572 446 339 247 172
imported -2747 -3499 -4234 -5017 -5803 -6611 -7433 -8256
Saved 1139 1309 1457 1597 1723 1829 1921 1997
Export % 47% 40% 33% 26% 21% 16% 11% 8%
self use % 53% 60% 67% 74% 79% 84% 89% 92%
$ saved $341.11 $392.32 $436.56 $478.37 $516.18 $548.04 $575.60 $598.33
$ earned $82.41 $68.73 $56.92 $45.76 $35.66 $27.15 $19.79 $13.72
$ total $423.51 $461.05 $493.48 $524.12 $551.84 $575.19 $595.39 $612.05
Table 47 – Summary of the PV system analysis results
7.7.11 Summary
 With current electricity tariffs and feed in tariffs the most cost effective option is to
size a PV system so that most of the electricity it produces is used onsite.
 A 1.5 kW system will save the household $200 to $480 annually over its operating life
including paying for the purchase and installation price.
 A PV system installed in Northern Victoria can produce up to 20% more than in

Southern Victoria
 If there is no suitable North facing roof available, a North Easterly orientation will
provide more Electricity than a North Westerly orientation. However, within 45
degrees of true north there is less than 10% decrease in output.
 If a flat roof or an unsuitable orientation is the only option then racks to tilt and
orientate the PV modules can be used. This will add approximately 15% to 20% to the
installed cost.
 The money a householder needs to invest to save a kWh of electricity is significantly

less than the current cost of electricity. 6-9 c/kWh compared to 27-30 c/kWh to
purchase

8 Notes
a
The gas boosted solar water heater included in the analysis was typical of the cost and performance of the gas
boosted solar water heaters installed in Victoria in the two years up to May 2013. It was not of any particular
model or technology type.
b
The star rating and the corresponding efficiency of the ducted gas system is from Appliance Energy
Consumption in Australia – Equations for Appliance Star Ratings for Indirect gas-fired ducted air heater – AS
4556: http://www.energyrating.gov.au/wp-
content/uploads/Energy_Rating_Documents/Library/General/Labelling_and_MEPS/appliance-star-ratings.pdf
And for the cooling: Appliance Energy Consumption in Australia – Equations for Appliance Star Ratings for air
conditioning – AS/NZS 3823.2: http://www.energyrating.gov.au/wp-
content/uploads/Energy_Rating_Documents/Library/General/Labelling_and_MEPS/appliance-star-ratings.pdf
c
IM: For existing ducted heating units its more likely to be R0.6. We estimate that the current stock average gas
ducted heater is around a 3 star rating. 2 star gas ducted heaters haven’t been sold since the mid-1990s and the
current market average is around 3.5 stars, and possibly slightly higher where people are purchasing their own
unit.
It is quite rare for Victorian houses to have a ducted refrigerative air conditioner for cooling. Where a ducted
cooling system is used it is most likely to be ducted evaporative. Where refrigerative air conditioners are used
they are more likely to be split-system room air conditioners. Accordingly, use of a ducted refrigerative air
conditioner in the peak load analysis would give the “worst case” peak demand results.
Current MEPS level for ducted refrigerative coolers is and EER of 3.10. An EER of 3.25 is probably around the
market average for a new ducted refrigerative cooler, but the stock average ducted refrigerative cooler could be
less efficient than this
d
Air conditioners tend to place their peak loads on the electricity system between 4 and 5 pm on very hot
summer days, with a lot of the impact being due to people coming home from work and switching their air
conditioners on, but systems are not sized to attain conditions in 60 minutes from a worst start. For grid impact,
the start times are diversified, including those already on (always home scenario).
e
This applies to a new ducted heating/cooling installation, but existing ducted heating/cooling systems are likely
to have a lower level of insulation. Depending on how old they are, they may also have suffered from some
degradation and therefore have even higher heat loss.
f
In houses with suspended timber floors gas heating ductwork will commonly be run under the floor. The heat
losses would be similar anyway as the lower R will be in a more moderate environment and all dust losses warm
the subfloor and reduce losses through the floor. AccuRate cannot model this.
g
Prices obtained from the following sources:
Rawlinsons – Australian Construction Handbook 2012 edition 30. Prices are for Dec 2011 and they are djusted
to Dec 2013 (latest available) using the indexes report from the Australian Bureau of Statistics "6427.0 -
Producer Price Indexes, Australia, Dec 2013. Table 17. Output of the Construction industries, subdivision and
class index numbers". Index Number ; 3011 House construction Victoria.
http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/6427.0Sep%202013?OpenDocument

Andrew Bell - Andrew Bell – Energy Efficiency Advisor of Alexander Watson Energy Efficiency. Prices are
for Canberra but adjusted to Victoria using the same indexes report from the Australian Bureau of Statistics.
Index Number ; 3011 House construction Victoria and 3011 House construction Australina Capital Territory.
Dominic – State Manager (A.C.T.) of Rylock Windows and Doors. Glazing prices are for Canberra but
adjusted to Victoria using the same indexes report as above.
Peter – Sales Manager of Skyview Windows. Glazing prices are for Canberra but adjusted to Victoria using the
same indexes report as above.
h
Price includes the installation of a new light point, which is about $70 from the Rawlinsons Handbook 2012.
The LED installation cost to an existing light point will be cheaper.
i
Rawlinsons – Australian Constrction Handbook 2012 Edition 30.
j
ActwelAGL Energy Shop, Fyshwick Canberra. Packaged AC system information was provided by Craig and
Brad in Feb 2014.
k
Gstore: http://www.gstore.com.au/. Viewed on 28th Feb 2014
l
IM: There are hardly any 5 star gas room heaters on the market at present. There is an Aurora made in Victoria
but this is a gas effect log fire and the sales are likely fairly modest. The most widely sold high efficiency gas
room heaters are the Rinnai Energysaver models which have a star rating in the 4 star range. Based on the SV On
Ground Assessment study of 60 existing houses we estimate a stock average of around 2.8 stars. There is little
data on the efficiency of new gas room heaters sold but it is unlikely to be less than this.
m
IM: There are really two possible baseline scenarios:
(1) Householders do not upgrade their heating/cooling systems. This would mean that the baseline
efficiency was based on a stock average efficiency of existing equipment;
(2) Householders choose to replace their existing heating/cooling as part of the upgrade. This would mean
that the baseline efficiency was based on the market average of new equipment sold.
n
IM: Cooling upgrades have been ignored as they are the most expensive and yet the cooling energy savings are
always going to be quite small. This means that choosing such an upgrade will always result in a very long
payback period. This is especially the case as the upgrade is assessed at the full installation cost, rather than
looking at the differential cost between a high efficiency and market average efficiency systems.
o
ActwelAGL Energy Shop, Fyshwick. Price provided by Rowen in May 2014.
p
Proprietary software developed by Energy Partners. For further details see “House Energy Efficiency
Improvements - Costs of Increasing AccuRate Star Ratings for New and Existing Houses”, Report by Centre for
International Economics in association with Dr Tony Marker (pitt&sherry) and Trevor Lee (Energy Partners),
May 2010, MBA Project. This was subsequently published as “Energy-efficiency: building code star-ratings
What’s optimal, what’s not”, report for Master Builders Australia by Centre for International Economics,
Canberra & Sydney (in association with Pitt and Sherry and Energy Partners), July 2010.
q
ASHRAE, “Handbook of Fundamentals” American Society for Heating Refrigeration and Airconditioning
Engineers, Atlanta GA, USA, 2009
r
While most extension projects will be for households of 4 or more, the full range is reported here for
completeness and in recognition of the later years in each house’s life and that not all “empty nesters” will
“downsize” or take in boarders.

s
AS/NZS4234 “Heated water systems—Calculation of energy consumption” provides three loads for evaluating
solar water heaters.
u BIS Schrapnel 2012

v
GWA, 2010, Regulation Impact Statement: for Decision Phasing Out Greenhouse-Intensive Water Heaters in
Australian Homes http://www.energyrating.gov.au/wp-
content/uploads/Energy_Rating_Documents/Library/Water_Heating/Gas_Hot_Water/Water-Heaters-Decision-
RIS-FINAL-15-Nov-2010.pdf
w
Energy Made Easy website: https://www.energymadeeasy.gov.au/bill-benchmark
x
http://www.sunwiz.com.au/index.php/solar-market-intelligence/solar-hot-spots-target-
suburbs.html#staticChartsPVAustraliaCapacity Accessed 30 January 2014
y
Moyse Climate spectator 24/9/2013 Solar payback: Smaller is better
http://www.businessspectator.com.au/article/2013/9/23/solar-energy/solar-payback-smaller-better
z
Gill How electricity use affects PV system size http://www.phacelift.com.au/wp-
content/uploads/2013/06/Article-4-How-electricity-use-affects-PV-Size-v01.pdf
aa
In reality the optimum size will depend on whether the household is occupied during the day or usually
unoccupied during the day. Residential load profiles generally display a peak in the morning and the evening and
are fairly flat and low during the day. This can mean that much of the electricity generated is exported to the
grid.
bb
https://sam.nrel.gov/
cc
This is the shape of the distribution profile used. The profiles used were a constant multiple of this profile that
varied for each household size and season to give the seasonal totals given in Table 43 in Appendix 7.7
dd
For a solar water heater there is a cost involved in purchasing energy for backup, which, whilst lower than the
amount required for a conventional system is still an outgoing, so is a cost in annualised terms. For water
heaters the annualised cost is relevant as a comparison between product types.
ee
NatHES Technical Note 2 – Guidance for Calculating Ceiling Penetrations (Version 1.0-2012)
ff
gg
IM: In the On Ground Assessment study the average estimated cost for comprehensive draught sealing of
existing houses was $1,037. (Higher figures here may be due to different no of windows and doors. Note that
draught proofing includes skirting boards which the wall length in different house affect the cost.)
hh
Zone types are defined in Technical Note 1 - NatHERS Principles for Ratings in Regulation Mode (Version
1.1 – 2013)
ii
Add R0.5 for waffle pods 175 and 225 thick or R1.0 for 300 and 375 thick according to recent NatHERS
technical advice (Sent: Friday, August 02, 2013 4:32 PM, Subject: Waffle Pods - Advice for Assessors from the
NatHERS Administrator). EP recommends retaining nil insulation in the NCC case and adding the deeper waffle
pods in the Best Practice case. Confirmed by SV 25 November 2013.

jj
UTas to provide Glazing Calculators for all non-complying cases for SV to instruct which of those cases are
acceptable for “partial compliance” BA and which, if any, must have generic clear double glazing in standard
aluminium frames in their Baseline. Confirmed by SV 18 November 2013.
kk
Timber window frames in Pre-War and Inter-War typologies, aluminium in later typologies. Confirmed by
SV 25 November 2013.
ll
Existing rooms to have one wall vent per 15 m² NFA or part thereof except Estate Style which post-dates the
NCC requirement for vents. Existing kitchens and bathrooms (including en suite bathrooms) to have one
unsealed exhaust fan each. Existing windows and doors to be un-weather-stripped and have medium gaps
irrespective of age or typology. Confirmed by SV 25 November 2013.
mm
At circa 65W per halogen incandescent fitting, the limit of 5 W/m² translates to one vented downlight per 13
m² of GFA. Switching 2 or more with a motion detector, this can be modified by the adjustment factor of 0.55
allowing one vented downlight per 7 m² of GFA. Using CFL or LED vented fittings at say 15W each there
could be one vented downlight per 3 m². EP recommends Baseline extensions to have one vented downlight per
7 m² of GFA. Confirmed by SV 25 November 2013.
nn
If gas is available then a 2 star central ducted heater is most likely. We will model split heating and cooling -
i.e. MEPS AC for Cooling, 2 star gas CH ducted for heating. Confirmed by SV 18 November 2013.
oo
Electric storage isn’t used a lot where gas has been available for longer than the system lifetimes. Perhaps 2
star gas storage would be more likely, except in Mildura.
We could have 2 options here: 2 star gas storage, say, 180 litres in volume or 400 L off peak electric.
SV to instruct what alternatives are to be applied. See also endnote yy.
pp
EP expects the insulator to not want to differentiate new and old areas to install different batts in each area
with increased wastage. Confirmed by SV 25 November 2013.
qq
Batt must be no more than 90mm to preserve the air gap and reduce condensation. Rockwool batts provide
these measurements (http://www.bradfordinsulation.com.au/Products/Residential-Products/Thermal-
Insulation/Gold-trade;-Wall-Batts.aspx). With a 90 mm frame R2.5 + foil the R2.5 Rockwool batts are an
average of 86 mm thick leaving virtually no airspace. Therefore reflectance is only in one direction - outward.
However, even R1.5 batts would ordinarily be pushed against the RFL if there was any, leaving the air gap
between the batt and the plasterboard. Also, in the WB house the reflective air gap will be small - and zero near
the top of every WB. Confirmed by SV 25 November 2013. Using Emissivity 0.20 as anti-glare foil probably
used.
rr
Insulation of existing walls was agreed in phone meeting 6 December 2013. For existing external walls in the
Pre-War typology, the WBs are removed and discarded, R2.5 batts installed and held in place by breather RFL
with 35 mm timber battens fixed over studs forming an unventilated air gap and covered with new WBs
installed, trimmed and painted. For existing external walls in the BV typologies, the PB is removed and tapes
run along the outside face of the studs with R2.5 batts installed against the tape and new PB installed, trimmed
and painted. For existing external walls in the Inter-War cavity brick typology retrofit rockwool is installed
providing R1.0 added insulation.
ss
Cavity fill gives notional added insulation of R1.0 in cavity brickwork, R2.0 in weatherboard walls and R3.0 in
brick veneer walls. SV instructs 18 November 2013 cavity fill for double brick, R2.5 batts installed in
weatherboard and brick veneer walls Agreed 25 November 2013 that this retrofit of WB and BV walls is
expensive as it will require removal and replacement of internal plasterboard and repaint but, as this is part of a
renovation, it provides an opportunity when repainting may be happening anyway. Cavity fill in all traditional
wall types will be covered in future work for the online tool.

tt
Edge and/or underfloor insulation is only required by the NCC where in-slab heating is installed but we are
assuming ducted central space heating and cooling for this project. SV instructs 18 November 2013 for the best
practice model to have R1.0 edge insulation and R1.0 under floor insulation to account for Waffle Pods. EP
confirms that AccuRate models slab edge insulation (although FirstRate5 cannot) but cautions that the algorithm
is dubious and gives scant energy benefit, perhaps by emulating the relatively ineffectual detail incorporated in
the NCC (Figure 3.12.1.4). SV confirms EP advice that the slab edge modeling will provide negligible energy
benefit and agrees to remove slab edge from the project scope 25 November 2013.
uu
SV would also like to capture the benefits of improving the glazing in the whole house, EP to quote for a
variation for this work.
vv
UTas provided a table by email on 6 December 2013 for confirmation and incorporation in the project and its
report.
ww
Confirmed as a variation extra by SV 18 December 2013.
xx
Agreed in phone meeting 6 December 2013 to delete the second lighting alternative. EP will include the
rationale and supporting research in the draft report as an appendix.
yy The SHW system will be defined by its performance in Zone 4 (~65%). Does SV want to have the higher
performance in Zone 3 (~70%) accounted for in Mildura OR one performance for all the state? Do we assume
that there is no non-gas use for hot water in the Baseline case or does SV want to have two Baseline cases, which
may be relevant for Mildura (gas boosted to compare with gas storage or electric off peak boosted to compare
with electric)? EP recommends a consistent state-wide treatment but confirms that differentiating Mildura can
be done within the current contract sum. SV confirms 25 November 2013 one standard approach for all of VIC
and that gas HW will be used for the Baseline.
aaa
Indicative cost effective systems for common house electricity consumptions. It is noted that 3kW systems
are common despite their theoretically inferior cost effectiveness under current tariffs.
bbb
While the science of water heating, and especially solar water heating, is carried out in energy units (MJ)
some discussions present litres/day MJ/day is converted to approximate volumetric equivalents by assuming a 45
K temperature rise, consistent with energy labelling calculations, to aid in lay understanding of the rationales.
The L/day and MJ/day figures are annual peaks. Consumption varies seasonally due to the cold water inlet
temperatures and some behavioural seasonality too. This is particularly important to solar water heating as the
high consumption months coincide with the low solar input months of winter.
ccc
While most extension projects will be for households of 4 or more, the full range is reported here for
completeness and in recognition of the later years in each house’s life and that not all “empty nesters” will
“downsize” or take in boarders.
ddd
AS/NZS4234 “Heated water systems—Calculation of energy consumption” provides three loads for
evaluating solar water heaters.
In Zone 4 which covers Melbourne and Ballarat (different zone geography to NatHERS which in turn is different
zone geography to the NCC) the loads are:
 Small load 25.2 MJ/day in winter: Approx. 120 litres raised 45K
 Medium Load 42 MJ/day in Winter: Approx. 200 litres raised 45K
 Large load 63 MJ/day in winter: Approx. 300 litres raised 45k
The variation of energy used to heat water by month due to different inlet temperatures and hot water
consumption from various studies is given in Table A5 in the standard. The average load multiplier is 0.904
therefore the average is 90.4% of the peak. Note that the standard refers to peak loads so the yearly consumption
is 365 times the average load or 365 x 0.904 x Peak Load.

eee
Gas water heater round robin 2005/2006 http://www.energyrating.gov.au/wp-
content/uploads/2011/02/200612-wh-round-robin.pdf
fff
4 star From Origin website https://www.originenergy.com.au/hot-water-products/?_qf_p2_display=true
Rheem 135 L $1940, 170 L $2140. Therefore use $2040
6 Star http://www.scooper.com.au/catalog/item/8454421/8856221.htm
Rinnai Infinity 26 Enviro 26 Litre Continuous Flow Gas Hot Water Heater 26 $1695
Installation $770 plus $770
$45/ m of gas pipe (extension over 4 m) so if 10 m required will be additional 6X45 = $270
Grand total $1695 + $770 + $270 = $2735
ggg
BIS Schrapnel 2012
hhh
GWA, 2010, Regulation Impact Statement: for Decision Phasing Out Greenhouse-Intensive Water Heaters in
Australian Homes http://www.energyrating.gov.au/wp-
content/uploads/Energy_Rating_Documents/Library/Water_Heating/Gas_Hot_Water/Water-Heaters-Decision-
RIS-FINAL-15-Nov-2010.pdf
iii
Energy Made Easy website: https://www.energymadeeasy.gov.au/bill-benchmark
jjj
http://www.sunwiz.com.au/index.php/solar-market-intelligence/solar-hot-spots-target-
suburbs.html#staticChartsPVAustraliaCapacity Accessed 30 January 2014
kkk
Moyse Climate spectator 24/9/2013 Solar payback: Smaller is better
http://www.businessspectator.com.au/article/2013/9/23/solar-energy/solar-payback-smaller-better
lll
Gill How electricity use affects PV system size http://www.phacelift.com.au/wp-
content/uploads/2013/06/Article-4-How-electricity-use-affects-PV-Size-v01.pdf
mmm
https://sam.nrel.gov/
nnn
This is the shape of the distribution profile used. The profiles used were a constant multiple of this profile
that varied for each household size and season to give the seasonal totals given in Table 43above.
ooo
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Renovation Cost-beneﬁt Analysis Report

Technical Report · August 2014

Condensation Risks In Australian Buildings View project

The user has requested enhancement of the downloaded file.

A Division of Exemplary Investments Pty Ltd

Renovation Cost-Benefit Analysis

July 2014 Page 2 of 99

2.12 Financial Savings ................................................................................................... 20

July 2014 Page 3 of 99

3.5 Hot Water Systems .................................................................................................... 41

5 CONCLUSIONS AND RECOMMENDATIONS............................................ 59

July 2014 Page 4 of 99

7.6.2 Performance in Northern Victorian compared to Southern Victoria ................. 76

July 2014 Page 5 of 99

This simulation analysis was done for:

 4 house typologies – Pre-War, Inter-War, Double Fronted BV and Estate

 occupancy pattern - Someone always home;

1.1 Energy Efficiency Measures:

July 2014 Page 6 of 99

1.1.3 External Wall

July 2014 Page 7 of 99

Low-E Clear Glazing

Double Glaze with 12mm Air

Double Glaze with Low-E 12mm Argon in Extension Only

This system provides an average payback period of 44 years

Double Glaze with Low-E 12mm Argon in Existing and Extension

Double Glaze with Low-E 12mm Argon in Existing and Extension

1.1.6 Draught Proofing

1.1.7 Lighting Type

July 2014 Page 8 of 99

1.2 Heating & Cooling Systems

1.3 Peak Load Analysis

Steady State Total Metered Total Metered

1.4 Comfort Analysis

July 2014 Page 9 of 99

Average indoor temperature (°C)

1.5 Health Analysis

1.6 Hot Water Heating

July 2014 Page 10 of 99

Cost of energy saved $/MJ

July 2014 Page 11 of 99

 The majority of home renovations involved demolishing rear kitchen, laundry,

The most common construction types in new additions were mainly:

July 2014 Page 12 of 99

July 2014 Page 13 of 99

Weatherboard Timber framed walls,

Double brick walls,

Double fronted Brick veneer walls,

Middleweight Brick veneer walls,

July 2014 Page 14 of 99

Conditioned Floor Area (m²)

2.2 Usage profiles

1. Away during the day; and,

July 2014 Page 15 of 99

2.2.1 Away During the Day

2.2.2 Someone Always at Home

2.3 Climate Zones

1. Hot: Mildura – NatHERS No. 27 - indicative of NNC CZ 4

July 2014 Page 16 of 99

2.5 Energy Efficiency Measures

1. Building fabric improvements;

The modelling demonstrates the effects of two types of heating systems: