The Victorian Energy Upgrades (VEU) program is a Victorian Government initiative that helps households and businesses cut their energy use by swapping old, inefficient appliances for better ones. It's run by the Essential Services Commission, with policy set by the Department of Energy, Environment and Climate Action.
Where the discount comes from
When an eligible upgrade is done, an accredited provider can create Victorian Energy Efficiency Certificates, known as VEECs. Each VEEC represents one tonne of greenhouse gas emissions saved by the upgrade.
Large energy retailers are required to buy and surrender a set number of VEECs each year. That demand gives VEECs a market value, and the accredited provider passes part of that value on to you as a discount on your upgrade.
What this means for your air con
Replacing an old, inefficient heater with an efficient reverse-cycle air conditioner is one of the upgrades the program supports. It's known as the space heating and cooling activity.
- The system has to be an approved product on the program's register.
- It must be installed by appropriately licensed tradespeople and sized to suit your home.
- In some cases, your old heater has to be decommissioned as part of the upgrade.
- Products installed under the program need at least a five-year product warranty.
It's a discount, not a freebie. Since February 2025, air conditioning upgrades under the program have a minimum customer co-payment. You'll always pay something towards your system. Here's how that works.
Why the discount amount varies
The number of VEECs an upgrade creates depends on things like the heater you're replacing, the size and efficiency of the new system, and where you live. VEEC market prices also move over time. That's why we quote each home individually rather than advertising one fixed price.
Where to read more
The official program information is on the Victorian Government's Energy website and the Essential Services Commission website. Or just ask us and we'll explain how it applies to your home.