Victorian Energy Upgrades

How the scheme works

VEU operates through tradeable certificates called Victorian Energy Efficiency Certificates (VEECs). Accredited providers install eligible products, create VEECs based on the estimated lifetime energy saving of the upgrade, and sell those certificates to energy retailers (who must surrender a set number annually under their scheme obligations). The certificate value is passed to households as an upfront discount on the product or installation.

This is the same market mechanism as the federal STC scheme - it’s not a government payment directly to you, but a subsidy embedded in the installer’s price that reflects the market value of the certificates they’ll generate.

What’s eligible

VEU covers a broader range of products than the federal SRES, which focuses only on solar and hot water. Current VEU-eligible upgrades include:

• Heat pump hot water systems - one of the most heavily incentivised categories; rebates in the $300–$1,000 range depending on system size
• Space heating and cooling (reverse-cycle split systems replacing gas)
• Ceiling insulation
• LED lighting upgrades
• EV charging equipment (home wallboxes, some commercial chargers)
• Pool pumps (variable speed)

The rebate value per product changes as the VEEC spot price fluctuates and as program parameters are adjusted by the Essential Services Commission.

Who’s eligible

VEU is available to Victorian households and businesses. There are no income tests for most upgrades. Some products (particularly heat pumps and insulation) have additional incentives for concession card holders through the separate Victorian Energy Upgrades for Households program.

Properties that have already received a VEU upgrade for a specific product category may be ineligible for repeat upgrades - the rules vary by product type.

Getting the discount

To access VEU pricing, you need to use an accredited provider. The ESC publishes a list at their website. An accredited provider will quote you the post-rebate price directly - you don’t need to apply for anything separately. Confirm the provider’s accreditation and ask them to show you the pre- and post-rebate price breakdown.