The Victorian Energy Upgrades (VEU) program grants homeowners in Melbourne the chance to achieve reductions on the heating and cooling upgrades by offering huge rebates. It has been expanded and a new set of rules in 2026 will ensure that the energy-efficient systems will be more affordable. This manual will assist the homeowners to know the available VEU rebates, who is eligible and the application procedures. Replacing an obsolete gas heating or updating air conditioning, this guide provides easy-to-follow actionable guidelines to optimize the VEU program. Continue reading to know the eligibility, the rebate value and how to utilize these savings.
The VEU program is a program by the Victorian Government that aims to assist homeowners to save on power bills by replacing their current systems with more efficient systems.
The program provides rebates on the products that qualify such as heating, cooling, hot water, and insulation. These rebates are financed with the help of Victorian Energy Efficiency Certificates (VEECs) that are created and traded by accredited providers such as IHeatandCool.
Those with homes are offered a discount at the beginning and thus energy efficient upgrades become cheaper and more accessible.
The VEU program offers initial discounts on energy efficient products, including reverse cycle air conditioning and hot water systems through VEECs.
The certificates are sold in the market to the energy retailers and the money is used to finance the rebates. The advantage to the homeowners is that they pay a lower rate to get the efficient systems; this discount is implemented at the point of sale. This lowers the initial cost liability as well as enhances energy saving in the long term.
The program of VEU has eligible upgrades which include heating systems, cooling systems, hot water systems and insulation. The Melbourne homeowners are eligible to receive rebates on installing reverse-cycle split systems, ducted reverse-cycle systems and systems that are heat pump hot water systems.
Such efficient energy upgrades prevent the use of enhanced energy, which saves on bills and enhances comfort at home. IHeatandCool offers various systems which are approved so that Melbourne homeowners can take advantage of the rebates offered by the program.
The VEU scheme has been reorganized to 2030 to allow more time for Melbourne homeowners to utilize energy-efficient home improvements.
This extension will guarantee rebates to individuals wishing to upgrade their old inefficient systems.
Using this extended period, the homeowners will have more time to plan their upgrades, and the program will still be in place to facilitate the transition to a more environmentally friendly and energy efficient future.
Beginning in 2026, any system installed as part of the VEU program should include a manufacturer’s warranty of 5 years.
This development guarantees better quality installations and gives the home owners peace of mind because their new systems are guaranteed for a longer time.
The warranty requirement is used to safeguard the consumers and ensure that the systems will be at their best to offer an added value to the homeowner’s investment.
The VEU program was expanded in 2026 to include insulation upgrades and expanded the list of rebates. Homeowners presently have the opportunity of getting rebates on insulation of their homes such as wall, ceiling, and insulation under floors.
These innovations also result in less usage of energy since they assist in keeping the indoor temperatures constant to make the homes more efficient and pleasant to stay in all year round.
The Product Register of VEU has been revised in 2026, which implies that only qualified, efficient products are available to get rebates.
The homeowners must ensure that the desired system they want installed is in the updated register. Homeowners are able to guarantee that they are getting the highest rebate by selecting the products using the list of approved products.
IHeatandCool implements various products that are approved by the VEU to make sure that the rebates are readily available to the Melbourne homeowners.
The Essential Services Commission (ESC) has augmented pressure on the accredited providers under the VEU program in 2026.
This guarantees that the rebates of VEU are provided by qualified and reliable installers. The increased compliance requirements give the homeowners better standards of service by making sure that the installations comply with the high standards of the program and that the system is installed and functioning properly.
The value that the homeowners can save with the VEU rebate will vary based on the kind of upgrade and the nature of the system being replaced.
Conversion of gas to electric and conversion to reverse cycle receive high rebate levels. To take an example, a replacement of an old gas ducted system with a ducted reverse cycle system can lead to a higher rebate.
The rebate is used at the time of purchase, which minimizes the cost of the systems initially in energy saving systems.
The rebate tiers are the best under the VEU program when using gas-to-electrical conversions. The greatest rebates are those offered on the replacement of gas ducted heating with a ducted reverse cycle system or gas hot water with heat pump systems.
These conversions not only save power bills but also match up with the movement of the Victorian Government to convert homes into electric systems which would make the conversion a lucrative financial decision.
VEU rebates can be combined with Solar Victoria rebates by homeowners particularly in installing hot water heat pumps. This implies that homeowners will be in a position to obtain a number of rebates, which will also lower the initial cost. As an illustration, the rebates offered by the VEU in conjunction with the Solar Victoria rebates can achieve a cost of zero of a new heat pump hot water system with significant savings.
Here’s a quick summary of the rebate ranges for different systems:
| Upgrade Type | Rebate Range | Customer Contribution |
| Gas Ducted to Ducted Reverse Cycle | $2,000 – $3,000 | $1,000 |
| Gas Ducted to Reverse Cycle Split System | $1,500 – $2,500 | $200 |
| Upgrading Old Split to New Split System | $200 – $500 | $200 |
| Gas Hot Water to Heat Pump Hot Water | $1,000 – $2,000 | $1,000 |
Rebates vary based on the system and market conditions, with exact amounts provided at the point of sale.
In order to claim VEU rebates the property should be situated in Victoria and should be of an age of 2 years. Homes less than 2 years old are not usually eligible to receive rebates, since the program is intended to cover homes that have to receive energy efficient upgrades.
The house should also be residential implying that businesses do not qualify under the program. The homeowners are advised to confirm the requirements of their property to qualify for the upgrades to prevent them from undertaking any work before starting a project.
Renters are entitled to the VEU rebates, although they need to obtain permission from landlords regarding permanent installations, including air conditioning systems.
The rebates can be used by the renters but the installation must be sanctioned by the landlord to ascertain that any permanent alterations are permitted. After making the consent, the renters should be able to choose a VEU-qualified system with a certified provider such as IHeatandCool.
There is a minimum customer contribution required for all VEU rebate claims, based on the type of system being upgraded. For non-ducted systems under 10kW, the minimum payment is $200.
For ducted systems or systems over 10kW, homeowners need to contribute $1,000. These contributions are paid at an initial stage when an installation is carried out and the rebate is directly used to lower the total price.
One of the most frequent ones is to buy a product that is not on the VEU Product Register and get a rebate. One should always verify the register to be sure that the product is eligible before buying it.
As well, a non-accredited installer can disqualify the rebate, or an unapproved system can be used. The homeowners should also make certain that their property matches the age and location requirements because otherwise the application of the rebate will not be accepted.
A split system is commonly used in heating and cooling individual rooms or areas. Such systems are usually made up of an external unit and an internal unit.
The rebate on a VEU is available to homeowners who upgrade to a reverse cycle split system. Some of the popular VEU-approved brands are Daikin, Mitsubishi, Panasonic and ActronAir. The level of the rebate is based on the efficacy and kind of split system chosen.
Ducted reverse cycle systems offer a whole-home solution by heating and cooling the entire house through ductwork. These systems attract higher VEU rebates, especially when replacing old gas ducted heating systems.
They are ideal for larger homes or homes with existing ductwork. The VEU rebate is applied upfront, reducing the cost of upgrading to an energy-efficient system, and providing significant savings in energy bills.
Beginning in 2026, systems installed under the VEU program should have a 5-year manufacturer’s warranty. This is to maintain the quality and performance of the system.
The owners of the housing are insured against defects and failure for at least 5 years, which gives the owners confidence with regard to the long-term and stability of their new heating and cooling systems.
Split systems are also generally cheaper to install initially and both single-head and multi-head systems have rebates. They are perfect in small houses or rooms. Ducted reverse cycle systems, in contrast, offer a whole-home solution, which is suitable in larger homes and in homes with available ductwork.
Despite the fact that ducted systems tend to cost more at the start-up, they tend to receive higher rebates notably when they replace old gas systems. The home owners are advised to consider the initial costs, long term savings and energy efficiency to determine the type of system that best suits them.
VEECs (Victorian Energy Efficiency Certificates) are the energy efficiency that will be saved by the system throughout the process of its life.
A VEEC is generated for every unit of energy saved. These VEECs are then sold to the energy retailers who must buy them under the program of VEET (Victorian Energy Efficiency Target).
The VEEC sales are used to finance the initial rebate that is offered to the homeowners, thus making upgrades to make homes more energy efficient more affordable.
VEECs’ prices vary depending on the supply and demand in the open market. High demand of VEECs leads to high prices of the VEECs hence a higher rebate.
Conversely, when the supply of VEECs exceeds demand, the rebate amount may decrease. Homeowners should be aware that rebate amounts can vary, depending on the market conditions of VEEC prices at the time of installation.
Homeowners don’t need to manage VEECs directly. All the paperwork including the formation and filing of VEECs is done by the accredited installation provider, e.g. IHeatandCool.
The citizens who are homeowners only enjoy the initial rebate charged on their bill. This makes it a painless exercise to the homeowners and at the same time ensures that the homeowner gets the highest possible rebate.
Start by contacting IHeatandCool for a free eligibility check. They will also verify whether your property is covered under the VEU rebate according to your age, location and the nature of the upgrade that you would like to do. This measure will be taken to make sure that you are eligible to take the next step.
After approval, IHeatandCool will take you through the process of picking a system that is approved by VEU and matches your budget and the requirements of your home. They provide a range of highly efficient systems, which makes the homeowners have the best alternative in terms of energy savings and rebates.
Installation of the system is done by certified technicians who make sure that the VEU program is adhered to. The installation will be important to allow the system to be efficient and to qualify for the rebate.
IHeatandCool does all the required VEEC paperwork and rebates. You do not have to complete any forms or even take up the rebate procedure yourself. They take care of it all making the whole process hassle-free.
The rebate is given on the installation front, i.e. you pay the discounted price at the moment. This will reduce the necessity of reimbursement or a rebate check.
The average duration of a VEU rebate application is 1-2 weeks from first contact all the way to installation. It is fast and effective and the homeowners can enjoy their energy efficient upgrades without the unjustified procrastination.
Victoria is also promoting the use of electric heating systems by homeowners in preference to gas heating to lower carbon emissions and improve energy efficiency. This move contributes to the aim of the state to attain net-zero emissions by 2045.
Gas heating is a huge contributor to greenhouse gases and switching to the electric option like a reverse cycle system will help to lower the total amount of energy used and the advantage of having cleaner sources of energy.
A number of major dates indicate the gradual replacement of gas heating with electric heating in Victoria:
This is because such deadlines imply that homeowners should take action today lest they face future inconveniences and escalating gas heating expenses.
Electric heating is also associated with a major long term payback, as it is less expensive to run and more efficient. Other systems such as the reverse cycle air conditioning system have a COP (Coefficient of Performance) of 3-5 which implies that they will give 3-5kW of heat per 1kW of electricity consumed.
This is much more efficient than gas heating which normally transforms 0.8-0.9kW of heat per 1kW of gas. Electric systems become cheaper in the long run since the energy bills are saved.
The VEU rebate also allows gas heating to switch to electric systems more cheaply by providing initial discounts on installations. These rebates lower the cost of installing a gas system replacement, especially for large homes or complicated installations.
The rebates offered on gas-to-electric conversion are the highest and it is the right time for homeowners to change. This would be both cost effective and environmentally friendly with VEU rebates and the increasing price of gas.
No, VEU rebate is not a means-tested system. The rebate does not have any requirements in terms of the income of the homeowners. The rebate can be availed to you irrespective of the income you have provided there is eligibility of your property.
The renters are correct but they are not allowed to claim the VEU rebate until they secure a permission to have any permanent structures, including air conditioning systems installed by their landlords. After the consent, the renters will be able to receive the rebate via a certified provider such as IHeatandCool.
The program VEU is renewed until 2030, and the wider program of VEET (Victorian Energy Efficiency Target) is operational up to 2045. This provides ample time for homeowners to have access to rebates and have them make an energy efficient upgrade of their houses.
As a rule, there are no retrospective rebates. To be eligible of the VEU rebate, you need to be taken through an approved provider prior to installation. Make sure that you initiate the process and the system is not installed in order to miss out on rebates.
IHeatandCool uses systems that are VEU approved and whose brands include Daikin, Mitsubishi, Panasonic, Samsung, and ActronAir. Ensure to use a system in the revised VEU Product Register in order to be eligible.
Yes, there is a minimum amount of contribution needed by the customer according to the kind of system. The minimum contribution is approximately 200 USD in case of non-ducted systems with a contribution of less than 10kW, and 1000 USD in case of ducted system or system over 10kW. These were contributions that are upfront and rebate covers the balance of system cost.
Yes, it is possible to combine VEU rebates with other rebates including Solar Victoria rebates on heat pump hot water systems. This enables the homeowners to save more by adding incentives to available to them and this can make the overall cost of some systems zero.
The time taken to install normally takes 1-2 weeks after initial contact to installation. After the system has been chosen and the paperwork is done, the time spent on the actual installation is normally 1 day, but this again depends on the complexity of the upgrade.
Ready to Save on Heating and Cooling Upgrades? Contact IHeatandCool Today!
Take advantage of VEU rebates and upgrade your heating and cooling systems today. IHeatandCool makes it easy to qualify and install energy-efficient systems with the rebates applied upfront. Contact us today for a free eligibility check and same-day quote!