The Victorian Energy Upgrade or ‘VEU’ Program is a statewide initiative designed to help home and business owners make the switch from gas to electric.
In case users haven’t heard, a nationwide push is underway to gradually reduce our reliance on gas, as well as invest in more energy-efficient forms of heating and cooling.
VEU Government rebate
Although a gas ban has been introduced for new builds, the VEU Government rebate is in place to ease the financial burden for anyone who needs to replace their existing systems. However, like any rebate, there are key conditions and stipulations that users need to know.
Throughout this article, we’ll explain the VEU program in detail, how to know if users are eligible, the benefits of this upgrade, and why it is worth switching to electric.
What is the Victorian Energy Upgrades Program?
Each upgrade allows participants of the businesses under this Victorian Energy Upgrades program
The Victorian Energy Upgrades program is a government-led initiative that allows households and businesses to receive rebates or discounts on ‘energy-saving’ products. In turn, this aims to both reduce greenhouse gas emissions and lower utility bills for each participant.
Each upgrade allows participants of the businesses under this Victorian Energy Upgrades program to generate Victorian Energy Efficiency Certificates (VEECs). These VEECs, each represent one tonne of greenhouse gas reduction. Accredited providers can then sell these certificates to energy retailers.
Investment, innovation, and employment
Overall, the program also helps to encourage investment, innovation, and employment in industries that supply energy-efficient products and services.
Energy retailers use the certification to meet annual emissions targets set by the state government, and this incentive for households and businesses depends on market activity and certificate price. If users want to know more, the Essential Service Commission regulates and administers this program, including accredited people approving the products.
How does it benefit Victorians?
Although transitioning from gas to electric or solar is an excellent long-term investment, it can still come with significant upfront costs. This is where rebate programs help to ease the burden.
By lowering prices for all Victorians, energy savings from the program are expected to reduce energy consumption by 7% in 2025 and steer from $3.8 billion in system energy costs.
- Reduce energy bills: As the products installed under the Victorian Upgrades Program are energy-efficient, this removes energy demand and infrastructure, making energy prices cheaper for everyone. Even Victorians who don’t participate in this rebate will save on bills.
- Reduce greenhouse gas emissions: With emission-reduction targets, the program aims to achieve 28 million tonnes of greenhouse gas emission savings by 2025. For reference, this figure is the equivalent of removing roughly 8.5 million cars off our roads for an entire year!
- Program expansion: The VEU program constantly expands, including new and revised activities and incentives for households to carry out upgrades that save energy and slash bills. These new incentives offer further support for homes to replace gas appliances with efficient electric alternatives, install smarter appliances, and receive home energy rating systems.
Eligibility criteria for receiving rebates
How do users know if user’re eligible for a rebate or discount? The great news is that every Victorian household can get involved in the program! Everyone can access discounted energy-efficient products and services, and participation is voluntary.
- If users live in a rental property, user are also eligible to receive a discount on a heating and cooling system, and it is recommended that landlords or tenants work together when doing upgrades to a rental property.
- By participating in this initiative, households can save between $120 and $1,100 a year on energy costs, and businesses can save between $500 and $74,000 annually.
- The Victorian Government Rebate program also respects the rights under a Code of Conduct, including banning telemarketing and door knocking, clearly stating the business contract, and only undertaking work with consent.
Accredited providers of energy-efficient products
Users must work with this provider to get a discount on an installed appliance through the VEU
Accredited persons can create VEECs and are responsible for carrying out activities under the program’s rules.
An accredited provider will explain the steps to take part in the program, the product types the user can install to get a discount, and the necessary qualifications of the tradesperson installing the new system. Users must work with this provider to get a discount on an installed appliance through the VEU program.
Accreditation processes and standards
On 1 July 2023, changes to the Victorian Energy Upgrades included new accreditation processes and standards, new program fees, and strengthened powers for the commission. All persons must apply to the commission to renew it and remain accredited.
From November 1, 2023, people who transfer, hold, or surrender VEECs must obtain a VEET Scheme Registry Account, including accredited persons, relevant entities, and other parties that hold or transfer VEECs. However, if the user holds a certificate on 1 November 2023, the user has until 1 November 2024 to obtain a registry account. There has also been an accreditation transition period from 15 October 2023 to 14 October 2024, where all accredited persons have been assigned a date before their accreditation expires.
Replacing Old Heating and Cooling
With the help of this program, users can replace the old heating and cooling system with a new, more energy-efficient one. For example, user can install:
- Any Victorian Energy Upgrades approved product.
- A range of ducted (whole-of-home) and non-ducted (room) reverse-cycle air conditioners.
- A high-efficiency reverse cycle air conditioner capable of both heating and cooling!
An accredited provider or installer may also need to decommission the existing heating system to be eligible for the discount. Here is a list of the following systems that can be upgraded to more energy-efficient reverse-cycle air conditioners:
- A hard-wired resistance electric room heater, a central electric resistance ducted heater, a hard-wired slab heater, a refrigerated air conditioner, and a non-ducted reverse cycle air conditioner.
Choosing the right heating and cooling system for the home is important, and Aust Climate can help users choose the most appropriate system. Providing heating and cooling services in Blackburn, Malvern, Burwood, and across Melbourne, user’ll be in good hands from start to finish.
Steps When Organising VEU Installation
If users want a discount or rebate for the household or business, there are things to remember before installing the heating and cooling system.
- Install an approved product: Research products for suitability, quality, and products approved for installation under the VEU. Not all heating and cooling products are the same in quality or suitable for the environment. Speak to a heating and cooling professional if the user needs clarification.
- Work with an accredited provider: It’s always a good idea to get quotes from several providers. Accredited providers offer different heating and cooling products, services, expertise, and costs. Users can look through this registry of certified persons, including companies.
VEU Incentive – How Much Can Users Get?
Curious about the potential incentives? Let’s explore a brief overview of the potential amounts on offer for the average household.
Installing an efficient room-reverse cycle air conditioner
- If the current system is a ducted whole-of-house gas heater, the user can upgrade the system size to four split systems installed. Users can install one 8kW and three 3kW systems, with an indicative discount of up to $2520. Users can also install one 10kW multi-split system as an outdoor unit, saving the home up to $2,800.
- If the current system is a non-ducted reverse cycle air conditioner, upgrade the system size from 3kW to 9kW; the indicative discount can be $210 to $490.
- If the system is a non-ducted (room) gas heater, upgrade to a 3kW or 9Kw system with an indicative discount of $560 to $1400 yearly.
- If the system is a non-ducted reverse cycle air conditioner, the user can upgrade the system to a 3kW to 9kW with an indicative discount of up to $490 a year.
- If the system isn’t a commissioned product, users can upgrade the current system to 3kW or 9kW with a discount of up to $280.
Want to apply for a government rebate? Aust Climate can help users find an option for the home or business. Providing air conditioning services to Glen Iris, Caulfield, Kew, Bulleen, and across Melbourne, Aust Climate is a master of heating and cooling.
Installing an efficient ducted reverse-cycle air conditioner
- If the current system is a central electric resistance ducted heater, the user can upgrade the system size to 10kW or 22kW, with an indicative discount of $5,040 to $7,700 annually.
- If the current system is a ducted gas heater, the user can upgrade the system size to 10kW, 15kW, or 22kW, with an annual discount of up to $5,180 annually.
- If the system is a ducted reverse cycle air conditioner, the user can upgrade the system size to 10kW, 15kW, or 22kW, with an annual discount of up to $1680 annually.
- If the system isn’t a commissioned product, users can upgrade the system size from 10kW to 22Kw with a discount of up to $700.
It is important to note that there is no minimum system size requirement to obtain a discount or an upgrade for a reverse-cycle air conditioner. The appliance’s final installed price- (including the discount)is up to the accredited provider and will depend on the certificate price, location, installation costs, and the accredited provider’s administration costs.
Australian Climate Systems
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