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Joe and Anna face off in a dangerous surf-off to determine which one of them deserves Anna's place in the academy. Bec decides to make the competition more fair to Anna by giving her advice but Joe sees it as a betrayal.

The final surf-off was supposed to be in a week’s time, but due to a cyclone hitting the beaches, it was held the next day. Everyone surfed brilliantly, but the two winners were Fly and Edge. Bec and Edge thought that everyone should step through the door because this was the last time they will be all together.

Sparks fly when tension in the house begins to explode. Used to living as an only child, Mike starts to get angry at the lack of space in the house. When he deliberately destroys Corey's huge house of cards, a huge fight breaks out between Corey and Mike. So Simmo organises a bonding weekend at an outdoor adventure park to bring the group back together. Mike and Corey are teamed up, and all hell breaks loose.

Everyone is surprised at the return of Edge. They discover that Edge has been giving himself a bad name in the surfing world. The boys are eager to surf against Edge in a local competition, but he does a runner when it comes to the final. When Edge is finally tracked down he reveals that he is quitting surfing in comps.

It's well into the year at Solar Blue and Eric has mastered the art of slacking off. After a stupid stunt with a training helmet Simmo decides it's high time that he and Eric have a chat. When Amy overhears a conversation between Simmo and Eric she believes Eric is on the way out of Solar Blue.

There is trouble on Blue Water Beach when a group of local boys continually taunt the Solar Blue team whilst training. The leader of the group, Troy, wants Solar Blue off the beach. Meanwhile, Eric and Amy strike up a friendship with young surfer Nat and help her improve her surfing skills. Eric wants to make peace with the group of rebels, so he tries to reason with them but this leads to a devesating accident.

After the house suffers a plumbing problem, Simmo takes the team down to the South Coast to have some fun. Eric tries to stop everyone visiting his mum, but Amy secretly visits her and discovers a huge secret.

Annette organises a beauty contest to raise money to get better gym equipment. The Solar Blue girls think the idea of beauty contest is sexist, and will not participate in the fundraising. But Corey drops a bombshell when he reveals that he will be taking part in the contest. Will this beauty contest threaten his newly-found relationship with Rachel?

Fly misses an important call from her family and gets homesick. When she learns that her sister is in hospital, Anna lends Fly her mobile. Fly accidently runs up a huge bill and gets a part-time job at the car wash to pay Anna's bill. Deb tells the group that they have to do community service.

Matt runs the risk of losing his Solar Blue contract when he skips an important function to surf in a school competition.

The Solar Blue team are off to their first day of school. After just one day, the three girls already have dates, but they soon discover that their boyfriends have other things on their mind. Meanwhile, Heath devises a system for working around the house, but he gets stressed when nobody likes his new idea.

Simmo introduces the score board to the team. Heath devises a new plan for the household chores. Corey and Rachel have an argument about science versus nature principal. Corey believes that science can tell him when and where to take the perfect wave. Rachel believes that people should just go with their own instict. Corey plans his perfect wave for an upcoming competition using his science knowledge.

It's the first official day of training and because everyone performs so well, Simmo gives them the rest of the day off. Amy's idea for a picnic is the perfect oppurtunity for everyone to get to know each other.

Rachel discovers that she is falling for Mike. Her feelings put her in the face of danger when she gets stuck while abseiling. Fly goes off to her first competition on the pro tour.

Brooke proposes that Mike should get some lessons in improving his dancing skills. After a week of dance training, will Mike be ready to perform the tango in front of the whole class?

Amy gets a big surprise when her wealthy parents, Ray and Linda, arrive from the Gold Coast for a surprise visit. Eric lets it slip to Amy that his birthday is coming up on Saturday. Amy, being a party girl, does not intend to let this go by and organises a surprise birthday lunch. On the morning of the surprise party Ray and Linda have a surprise for Eric and whisk him and Amy away on a seaplane flight. Unfortunately the plane has mechanical problems and the group are delayed in their return.

Rivalry is put in motion when a friendly competition destroys Brooke's friendship with Rachel. After Brooke and Mike took a break from their relationship, Brooke begins to feel jealous of Rachel's time with Mike. She leads herself to believe that Rachel has feelings for Mike. When Brooke ruins Rachel's chance at winning the surfing competition, conflict arises which could ruin Brooke's future life in the house with Rachel and Mike.

Elite Surfer Connor Davies comes to solar blue to help the kids with fitness. His prescence creates tension at solar blue and also makes Amy and Eric question their relationship.

Welcome to the Solar Blue Surf Academy where 7 teenagers will spend the next year. Stacey breaks Fly's board so Heath lends her one of his spare ones so she can continue in the competition. Matt and Heath go out to watch the girls compete for the final girls spot. While out there Heath gets a head tilt and just after Fly wipes out so the boys help the lifeguards get her in the boat. All the finalists go up t the beach house which will be there home for the next year. Later that afternoon they learn that Bec's brother Joe's heat has been canceled for good because they already gave that position away to Anna from Germany who also moves in. Well the president of Solar Blue is at the house Heath talks him into a re do. Later that night Matt explains to Ann why Bec doesn't exactly like her. The next morning they all go to help Fly but Heath gets the tilt again and it turns out that Stacey messed with Fly's finn so Bec hands hers over and Fly wins the final spot.

Eric has a crush on Juliet, a girl at school and enlists the help of Amy to give him a few tips on communicating with girls. Meanwhile, Brooke's surfing is suffering and she asks Simmo if she can do bodyboarding. She is denied, so Brooke runs off to a bodyboarding competition without the permission of Simmo.