Who Qualifies for Victoria’s VEU Heating & Cooling Rebate?

Thinking about your heating and cooling system? If so, you’re probably looking to know if you quality for a rebate and how the process works

At Templestowe Heating & Cooling, we’ve seen firsthand how the VEU rebate slashes the cost of eligible upgrades for homeowners in Bulleen, Doncaster, Templestowe, and Balwyn.

Here’s who qualifies, what you can claim, and how much you could save.

What Is the VEU Rebate and How Does It Work?

The Victorian Energy Upgrades (VEU) scheme is a Victorian Government initiative designed to ease the financial burden of installation and encourage the use of more efficient heating and cooling systems.

The basics are as follows:

• > The savings you get apply directly to your quote, so it is an up-front savings, not a cash-back you claim afterwards.
• > Accredited providers and installers of energy efficient systems generate Victorian Energy Efficient Certificates (VEECs), for the greenhouse gas savings that are created.
• > Providers sell these certificates to energy retailers to fund your discount.
• > Any product under this scheme must be approved by the Essential Services Commission (ESC).

Common Upgrades & Example Savings

There are many products and ways you can save money making your house more energy efficient. The two most common ways under the VEU scheme are heating & cooling, and hot water systems.

Heating & Cooling

If you are replacing ducted gas heating with a ducted reverse cycle system, this can save you up to $5,530 with the discount. Alternatively, if you replace your old split system with a newer and more efficient model, you can get up to a $500 discount through the VEU scheme.

Electrifying your household and going gas-free opens the door to the highest rebates. However, even if you don’t go gas-free but still invest in a more efficient unit, incentives are still available.

Hot Water System

Upgrading your old electric or gas hot water service to a heat pump system can garner you up to $630 upfront discount. Plus this will lower your bills, saving you money over time.

Who Qualifies for the Heating and Cooling Discount?

This is a really common question, and the good news is that all households and businesses in Victoria qualify for heating and cooling discounts through the VEU upgrade program. This also includes private rentals and apartments managed by an Owners Corporation.

The details are:

• > There is no income test for this scheme; everyone is eligible.
• > If you are replacing an older system for a newer version, the unit being replaced must be more than 2 years old.
• > Renters can access this discount, but must get approval from the landlord to do so.
• > You can only install a highly efficient, VEU-approved system. Generally, it is a reverse cycle air-conditioning unit and it must come with a minimum 5-year warranty.
• > The installation must be completed by a VEU-accredited provider and they MUST apply the discount upfront. They cannot install it for full price and then make you apply for the discount. This is not the way.
• > The property must be physically located in Victoria. If you’re a Victorian and you own an investment property interstate, this property is not eligible.

Eligible Products and Systems

The full list of eligible products and systems can be found on the Register of Products, managed by the ESC. The Victorian Energy Upgrades (VEU) program provides upfront discounts for energy-efficient products installed by accredited persons. Eligible systems must be officially approved and listed on the VEU product registry.

Eligible heating and cooling products include reverse-cycle split and ducted air conditioning systems. Upgrading from units which are more than 2 years old qualifies. Popular brands in this program include Daikin and Mitsubishi.

Replacing a Ducted Gas Heater? Higher Discounts Apply

Whole-home ducted gas heating is not very efficient. If you replace this with an energy-efficient split system, you can potentially reap a discount of up to $5,330.

Details:

• > Upfront savings: Applied directly on your installer’s quote, not claimed later.
• > Maximum amount: Up to $5,530 off for ducted gas replacements.
• > Annual savings: Lower energy bills by up to $1,140 per year.
• > Eligibility: Available to Victorian homes and rental properties (with landlord approval) over two years old.

Replacement Options:

• > Ducted reverse-cycle: Replaces central ductwork for whole-home climate control.
• > Multi-split systems: Provides individual room control as a gas alternative.
• > Mandatory warranty: Selected hardware must carry a minimum 5-year product warranty.
• > Decommissioning rule: Your old gas ducted unit must be functioning before being permanently decommissioned.

What You Need to Do to Claim the Discount

To claim this discount on making your home much more energy efficient with its heating and cooling, you don’t apply to the government. You need to find a VEU Accredited Provider. The markdown, or discount, is deducted upfront by this installer, and included on your invoice.

Here is the 5-step process to claim the discount:

1. Find an accredited installer: Check that your chosen tradesperson is officially registered as an accredited provider under the VEU program before booking.
2. Pick an approved product: Ensure the system or appliance you want to buy is listed on the VEU product register.
3. Request an itemised quote: Ask your provider to calculate and apply the VEU discount directly to your quote before work begins.
4. Sign compliance paperwork: Complete and sign the required declaration forms on-site during installation so your provider can claim the certificates.
5. Pay the reduced total: Pay only the remaining balance on your final invoice after the upfront rebate is subtracted.

Why It Pays to Use an Accredited VEU Installer

Besides the fact you are unable to claim the VEU discount from a provider who is not on the list, there are distinct advantages, and convenience, for using an installer on the VEU Provider list.

First off, you get the price reduction upfront, before the work is completed. It is a discount on your invoice, not something you claim afterwards. You don’t have to file something separately for this discount. The installer handles all certificates and paperwork for you.

The products that are being installed are all checked and approved by the ESC and are listed on the VEU Registry. You won’t have an installer offering you something ‘cheaper but just as good’.

All installers on the registry are confirmed to perform work to registry qualifications and follow all compliance and safety rules needed for the removal and installation of products.

Finally, non-accredited installers cannot claim the certificates and rebates. This means you would forfeit the potential savings if you don’t use an approved installer.

Get Your Home VEU-Ready

The VEU rebate isn’t a loophole or a limited-time deal. It’s a standing Victorian Government scheme, and there’s no income test standing between you and a cheaper upgrade, whether you’re in Bulleen, Doncaster, Templestowe, or Balwyn. If you’re swapping out a tired ducted gas heater or replacing an ageing split system, the savings land upfront, on your quote, not buried in paperwork you chase later.

The only real requirement is using an accredited installer who’s on the VEU register. Get that right, and the rest, from the certificates to the compliance forms to the discount itself, is handled for you.

Ready to upgrade without the full price tag? Get in touch with the team at Templestowe Heating & Cooling for a VEU-eligible quote on your heating or cooling installation in Bulleen, Doncaster, Templestowe, or Balwyn.