WIT Press

Preliminary Analysis Of The Cost Effectiveness Of Rainwater Tanks Rebate Scheme In Greater Melbourne, Australia


Free (open access)





Page Range

127 - 138




3,195 kb

Paper DOI



WIT Press


S. Gato-Trinidad & K. Gan


The Victorian Government in Australia through ‘The Water Smart Gardens and Homes Rebate Scheme’ provides rebates to residential water users who are connected to a mains water supply for purchasing water-saving devices and services to reduce their water consumption. Households who purchased and installed rainwater tanks from 1 January 2007 are eligible for a rebate of up to $1000 per household depending on the size of the tank and connection for indoor water uses, such as for toilet flushing and clothes washing. This report presents the preliminary analysis of the cost effectiveness of the rainwater tanks’ rebate scheme to the Victorian Government and to individual household owners who availed this scheme. The study involves the analysis of water consumption before and after the installation of rainwater tanks of 4391 households who availed the government rebates and of 4400 households who did not avail the scheme. Using the data provided by Yarra Valley Water the water savings from different tank’s sizes were calculated from the households who installed the rainwater tanks and received rebates. The results revealed that the 4400 households used less water than those that received government rebates before the installation of rainwater tanks but after the installation their water usage surpassed those that installed rainwater tanks. The results also show that rainwater tank sizes with indoor plumbing have longer payback period than those solely for outdoor purposes due to higher capital and operating costs even with higher rebates from the government. Keywords: rainwater tanks, cost effectiveness, payback period, water savings, Melbourne, Australia.


rainwater tanks, cost effectiveness, payback period, water savings, Melbourne, Australia