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.

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.

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

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.

Anna's surfing practice isn't going well and she books a plane ticket back to Germany. Heath finds Deb's files on the group with the judges' comments and Perri finds something in Anna's file that might convince her to stay.

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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.