Edge assumes Bec will be his partner for the school formal. Bec, sick of being taken for granted, invites Heath to be her partner instead. Chasing some big waves just before the dance, Edge takes Heath's jet ski without asking and damages it accidentally. It all comes to a head when Heath sees his dented jet ski. The night ends in a fistfight on the dance floor, and Bec is left wondering just what she saw in Edge.

Edge alienates the boys with his 'win at all costs' attitude at a triathlon event by not helping Matt when he falls off his bike. To teach him a lesson, Heath doesn't bother to pick up a race marker when it falls over, and Edge takes the wrong path, getting completely lost in the national park.

Perri's diabetes is revealed when she collapses into a coma. Deb's forced to tell Solar Blue, who are nervous about sponsoring a surfer with a potentially life-threatening condition. Matt campaigns on Perri's behalf, and she's allowed to stay. The only obstacle left—convincing Perri that diabetes won't stop her from being a champion.

After pushing herself to the limit with a hardcore training regime, Anna decides it's time to be a normal teenager. The others are busy making a video presentation to win sponsorship for some new boards. On a date with Bec's brother Joe, Anna loses track of time. She misses the deadline for the video and almost ruins her friends' chances for sponsorship.

Deb asks the team to judge each other in a surf competition, so they conspire to score each other highly. Heath's keen on the new girl, so a jealous Fly deducts points from his score and spoils the scoring plan.

Perri's parents have cut off her credit card. When a rival sponsor offers her a modeling contract, she thinks about leaving Solar Blue Academy. The modeling contract falls through at the last minute, so Perri's back to square one.

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.

It's what everyone's been working for—the final competition for a wildcard into the World Championship Tour. Bec and Edge move out to focus on winning, Heath confronts the reality of his exam results, and everyone surfs brilliantly!

Bec is invited to a big wave competition in Tahiti, but she's nervous about surfing heavy waves and, at the same time, trying to get Edge out of her head. The other girls suspect Bec has been chosen because she knows the competition organizers and give her the cold shoulder. When Edge points this out during a massive fight with Bec, she takes a risk surfing in huge swell and ends up in the hospital.

A shark scare brings everyone's greatest fear to the surface. Matt's seemingly unshakeable until his father, Ewan, unexpectedly arrives. Matt has his own plans for the future, but his fear of disloyalty to his father affects his surfing.

Matt and Edge are vying for the top position on the Academy scoreboard, and their friendly competition quickly gets out of control. Egged on by Heath and the arrival of a pretty new girl, they challenge each other to a dangerous surfing stunt. When the stunt almost kills Bec's little brother Ben, Matt and Edge realize there's a difference between acceptable risk and irresponsible behavior.

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.

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.

Bec's friendship with her brother Joe has suffered since she made it into the Academy. When she catches him stealing surfboards, the team pressures her to call the police, but she knows this could destroy their relationship.

Fly's having strangely romantic dreams about Heath, and she's desperate not to give away how she feels. On the eve of her birthday, she complains to Anna about missing her friends back home—and about being treated like a little kid. Anna organizes a party to cheer her up, making the others take Fly on a surfing trip so it can be a surprise. After a comedy of errors trying to avoid Heath, Fly ends up having to own up to her feelings.

Perri rescues someone from the surf, only to discover that he's an adrenaline junkie who's risked both their lives to seek attention. She's hailed as a hero but is so traumatized that she vows never to rescue anyone again. It's Matt who gives her the confidence to go back on patrol. He teaches her some self-defense techniques so she won't have to risk her own life to save someone else's.

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.

Fly tries teaching basic fitness techniques to the team, but they are not participating to the best of their ability. Simmo is angry that the kids aren't following Fly's advice, so he organises a surfing competition that sets Fly against this year's entire Solar Blue surfing team. Meanwhile, Heath goes for a job position as the junior photographer for Stax Magazine.

Eric scores big money after being offered the chance to be on the front cover of Stax Magazine. Eric uses the money to buy himself a new surfboard. But he loses the board while testing it out, and he is unsure how he is going to repay the shop. To make matters worse, he is now broke and he is unsure how to tell Amy that he likes her.

Brooke's relationship with Mike is on the rocks when her surfing begins to get worse, and a young girl becomes obsessed with Amy and her surfing.

Eric and Amy's relationship is on the rocks. Amy feels Eric is taking her for granted and suggests their relationship should be more casual. There is a special ball coming up on the weekend and Simmo reveals a magazine will be sending a photographer to do a fashion shoot with the Solar Blue team before the event.