It is commonly assumed that solar hot water systems save energy and reduce greenhouse gas emissions. The net energy requirement of solar hot water systems has rarely been analysed, including their embodied energy. The extent to which solar hot water systems save energy compared to conventional systems in Melbourne, Australia, is shown through a comparative net energy analysis. It was shown that the embodied energy component of the net energy requirement of solar and conventional hot water systems was insignificant. The solar hot water systems provided a net energy saving compared to the conventional systems after 0.5-2 years, for electric- and gas-boosted systems respectively. (C) 2003 Elsevier Ltd. All rights reserved.