The Victorian Energy Upgrades (VEU) program is one of the most generous household energy rebate schemes in Australia — delivering free or heavily discounted upgrades to hundreds of thousands of Victorian homes each year. If you own or rent a home in Victoria, the VEU program can knock thousands of dollars off the cost of a heat pump, split system, induction cooktop, or draught sealing job. Here's exactly how it works, what's covered, and how to access the Victoria energy rebate without getting caught out.
What the Victorian Energy Upgrades Program Is
The Victorian Energy Upgrades (formerly VEET) is a state-run scheme that reduces the upfront cost of energy-efficient products and services for Victorian households and businesses. It's administered by the Essential Services Commission (ESC) and has been running in various forms since 2009.
Under the scheme, accredited providers create Victorian Energy Efficiency Certificates (VEECs) for every tonne of greenhouse gas emissions that an approved upgrade is expected to avoid. Each VEEC represents one tonne of CO2-e avoided. Energy retailers are legally required to buy and surrender a set number of VEECs each year, which creates a tradeable market — and that market value is what funds your discount.
You don't have to understand any of this as a consumer. The accredited provider handles all the paperwork, claims the certificates on your behalf, and passes the value through as an upfront discount on your invoice.
What Upgrades Are Covered
The VEU product list is broad and has expanded significantly in recent years. Covered upgrades currently include:
- Heat pump hot water systems replacing electric or gas storage units
- Split system and reverse cycle air conditioners replacing old inefficient units or gas heaters
- Induction cooktops replacing gas cooktops
- Draught proofing and weather sealing around doors, windows and exhaust fans
- Pool pump upgrades to high-efficiency variable speed models
- LED lighting upgrades for homes and businesses
- Hot water system decommissioning (disconnecting and removing old gas storage units)
- Refrigerator and freezer decommissioning for secondary units
Not every product in each category qualifies — only models on the VEU product register are eligible. A good accredited provider will only quote you on eligible equipment.
Typical Household Discounts
Discount amounts vary with VEEC market prices (which have fluctuated between $45 and $95 per certificate in recent years), installation complexity, and the efficiency of the product replaced. As a guide, typical Victorian households are currently seeing discounts in these ranges:
| Upgrade | Typical VEU Discount | Indicative Net Cost After Rebate |
|---|---|---|
| Heat pump hot water (replacing electric storage) | $1,000–$2,800 | $1,200–$2,500 |
| Heat pump hot water (replacing gas storage) | $800–$2,200 | $1,500–$2,800 |
| Reverse cycle split system (replacing gas heater) | $500–$1,800 | $1,400–$3,200 |
| Induction cooktop (replacing gas) | $400–$900 | $400–$1,400 |
| Draught proofing whole home | $150–$500 | $100–$400 |
| Pool pump upgrade | $200–$600 | $400–$1,400 |
| Old fridge/freezer decommissioning | $30–$80 | Free pickup |
For concession card holders and low-income households, discounts are often topped up further — and in many cases the upgrade is delivered fully funded with zero out-of-pocket cost.
The Low-Income Upgrade Program
Inside the VEU is a dedicated stream for households receiving a Commonwealth concession, on a low income, or living in priority rental properties. Under this stream, eligible households can access:
- Fully funded heat pump hot water replacement (zero out-of-pocket)
- Free draught proofing and weather sealing
- Free replacement of old fridges and inefficient lighting
- Subsidised split system installation
Eligibility typically requires one of: Pensioner Concession Card, Health Care Card, DVA Gold Card, or participation in the Home Energy Assistance Program. Rental properties whose tenants hold a concession card usually qualify if the owner consents.
Eligibility Rules You Need to Know
To claim a VEU discount, the property and upgrade must meet several conditions:
- The property must be in Victoria and connected to the electricity grid
- For rental properties, the owner must provide written consent — the tenant cannot authorise the upgrade alone
- The product must be on the VEU product register and installed by an accredited provider
- The installation must comply with all relevant Australian Standards and building codes
- You generally can't claim a VEEC discount on the same appliance twice, so an older heat pump replacement won't qualify for a fresh discount
- For hot water replacements, the old system is typically decommissioned as part of the job
If you're renting, approach your landlord or property manager directly. Many owners say yes because the upgrade effectively comes free or near-free, and it raises the property's rental value and energy rating.
Finding an Accredited Provider
Only businesses accredited by the Essential Services Commission can create VEECs, which means only they can pass on the discount. The ESC maintains a public list of accredited providers at esc.vic.gov.au — always verify your installer is on that register before signing anything.
Before accepting a quote, check the following:
- Quoted price clearly separates the VEU discount from the net price you pay
- The provider is accredited for the specific activity (e.g. heat pump installs, not just draught proofing)
- They are also installing and removing the old system — required for most hot water discounts
- The product model appears on the VEU product register
- Warranty terms are clear, and the installer is licensed (plumbing or electrical as applicable)
Get two or three quotes. VEU discount levels don't vary much between providers for the same product, but total pricing can vary by thousands of dollars for the same equipment.
Stacking VEU With Federal Rebates
One of the best things about the VEU program is that it stacks with federal rebates for most eligible upgrades:
- Small-scale Technology Certificates (STCs) can be claimed on heat pump hot water systems in addition to VEECs — reducing costs by a further $500–$1,100 depending on zone and model
- Cheaper Home Batteries Program rebate applies to home batteries separately — VEU covers different products (batteries are handled via other state mechanisms in Victoria)
- Solar Homes Program (Solar Victoria) rebates for solar PV, batteries, and hot water can stack with VEU on some products, though not double-dipped on the same unit
A good accredited provider will handle all stacking automatically and quote the net price after every rebate. If a quote doesn't show STC and VEEC line items separately, ask for them to be itemised.
Timing and Program Expiry
The VEU program runs in multi-year phases. The current phase is legislated through to 2030, but specific activities (like gas-to-electric conversions) can be added, removed, or re-weighted each year based on targets and VEEC prices. The practical implication is simple: discount levels today are not guaranteed to be the same in 12 months.
If you're already planning an upgrade, there's little benefit to waiting. Current discounts on heat pumps and split systems are at or near historical highs, and VEEC supply-demand dynamics could reduce discounts in future years if many households rush in.
Find Every Rebate You Qualify For
The VEU program is just one of many rebates available to Victorian households — federal STCs, Solar Victoria grants, low-income streams, and utility programs can often be stacked for deeper savings. Our Rebate Finder helps you identify every rebate and concession you're eligible for based on your postcode, household type, and the upgrades you're considering, so you never leave money on the table.