With her new water heater, Liu Huimin now benefits from lower electricity bills at her downtown hair salon.

"Although it was a little bit more expensive, the energy-saving water heater will be economical in the long run," she said.

The economic benefits to consumers and the fact that they are environmentally friendly means there is a very promising market for the heaters, said Xie Desheng, secretary of Guangdong Chamber of Commerce for Household Appliances.

The development of new and renewable energies in China has laid a solid foundation for the faster development of energy-saving household appliances.

He said many household appliance manufacturers in the province had vowed to get involved in making such products.

They have been focusing on water heaters and refrigerators because they are the key daily household items that use electricity.

He said that an industrial committee dealing with energy-saving household appliances had been set up in the province, the first of its kind in the country.

The committee will carry out research and development (R&D) to develop the market and to work out industrial standards.

It has spent 3 million yuan (US$375,000) on R&D into energy-saving household appliances.

"The province is highlighting the development of energy-saving technological products in its 11th Five-Year Plan (2006-10)," he said.

"It has long been one of the nation's most important bases for the R&D into household appliances," the secretary added.

The province is China's major household electric appliance production base, with annual production accounting for over one-third of the nation's total.

More than 40 of the nation's big-name brands, including TCL, Midea, Kelon, Gree, Skyworth, Glanz and Konka are produced in Guangdong.

Tang Bigui, director of the provincial industrial committee for energy-saving household appliances, has a very upbeat analysis of the market prospects for such goods.

"Facilities at the Beijing 2008 Olympic Games and those related to the Asian Games in Guangzhou in 2010 will all use energy-saving household appliances," Tang said.

However, the director admitted that the present market for such products was limited, which he attributed primarily to their comparatively high price.

He also said a lack of knowledge about the products and a lack of awareness about energy saving in China were also hurdles.

For example, Tang said that a 150-litre air-source water heater costs about 5,000 yuan (US$625), two or even three times more expensive than an ordinary one.

"Not many people understand that the extra price of purchasing the new type of water heater will be recouped two to three times over because of lower running costs," Tang said.

The director suggested the government should do more to make people aware of the importance of saving energy.

Editor: Yan