Victorian Energy Upgrades (VEU): How to Claim Every Dollar You're Entitled To

Victoria's Victorian Energy Upgrades (VEU) program — formerly the Victorian Energy Efficiency Target (VEET) — is one of Australia's most valuable household energy incentive schemes. Unlike solar STCs which are federal, VEU rebates are state-specific and cover a much broader range of home upgrades.

How VEU Works

Under VEU, accredited providers (installers, retailers) create Victorian Energy Efficiency Certificates (VEECs) for eligible energy upgrades installed in Victorian homes and businesses. These certificates are purchased by retailers who are legally obligated to surrender a set number each year. The certificate value is built into discounts offered to consumers at point of sale.

Unlike STCs, VEU certificates must be created by a VEU-accredited provider — you cannot create them yourself. The discount is always applied upfront as a point-of-sale reduction.

What's Currently Eligible Under VEU

High-Value Categories

• Heat pump hot water systems — replacing electric storage or gas storage hot water. One of the highest-value VEU upgrades, worth $500–$1,500+ depending on system size and dwelling type.
• Air conditioner upgrades — replacing old, inefficient systems with high-star-rated reverse cycle models. Worth $300–$800+ per unit for eligible replacements.
• Heating system upgrades — replacing gas heaters with reverse cycle air conditioning or heat pumps. Particularly valuable for space heating replacement.
• Insulation (ceiling/underfloor) — worth $200–$600 per dwelling depending on type and area.

Other Eligible Upgrades

• LED lighting upgrades (common lights)
• Draft sealing
• Solar hot water systems
• Pool pump upgrades

How Much Can You Actually Save?

For a typical Melbourne household doing a heat pump hot water + air conditioner replacement:

• Heat pump hot water: $800–$1,200 VEU discount (plus federal STCs worth ~$700–$900)
• New 8 kW split system (replacing a pre-2004 model): $400–$700 VEU discount
• Total combined incentive: $1,200–$1,900 across two upgrades

Finding VEU-Accredited Providers

Not all installers are VEU-accredited, and only accredited providers can apply the VEU discount. Check the DEECA (Department of Energy, Environment and Climate Action) website for the official register of accredited providers. Be wary of cold-callers offering VEU discounts — verify their accreditation number independently.

Common Scams and Red Flags

• "Free" appliances: Some providers heavily subsidise or even give away appliances to claim VEECs on very cheap products. The product quality is often poor. Always compare the actual product specification against what you'd buy independently.
• Unaccredited installers: A provider claiming to offer VEU discounts without being on the official register is fraudulent.
• Incorrect dwelling type: VEU discount values differ between residential and small business. Ensure your installer is calculating certificates for the correct category.