Rebate guide — Victoria
Victorian Energy Upgrades: discounts on energy-efficient home upgrades
Victorian Energy Upgrades (VEU) is a Victorian Government program that cuts the upfront cost of energy-efficient upgrades — heat pump hot water, reverse-cycle heating and cooling, draught sealing, double glazing and more. Discounts are applied at the point of sale by accredited providers, and all Victorian households are eligible.
Last updated: 10 July 2026
How does Victorian Energy Upgrades work?
VEU is a certificate scheme, not a rebate you claim. When an accredited provider installs an eligible energy-efficient product (or decommissions an inefficient one), the greenhouse gas savings generate Victorian energy efficiency certificates (VEECs). Large energy retailers are legally required to buy and surrender these certificates each year, and the value of the certificates funds the discount you see on your quote.
Practically, that means the discount is applied upfront by the provider — you simply pay the reduced price. The size of the discount varies with the upgrade, the efficiency of the product and the market price of certificates, which is why quotes for the same upgrade can differ between providers. The program is administered by the Essential Services Commission, with consumer information at energy.vic.gov.au.
What upgrades are covered?
The headline residential activities currently include:
- Heat pump hot water — the Victorian Government cites up to $630 off upfront costs and up to $400 a year in bill savings when upgrading to an efficient heat pump system.
- Heating and cooling — discounts for replacing old heating (such as ducted gas or electric resistance heaters) with approved high-efficiency reverse-cycle air conditioners that both heat and cool.
- Draught sealing — discounts to seal gaps and vents that leak heated or cooled air out of your home.
- Double glazing — discounts of up to $210 per 10 square metres of window glazing upgraded.
- Ceiling insulation — from 1 October 2026, insulation discounts of up to $1,482 become available for eligible households.
- Efficient appliances and fittings — smaller discounts (up to $70) on heat pump clothes dryers, high-efficiency fridges, freezers and televisions, plus water-saving shower heads.
The full, current list of eligible products and activities is maintained at energy.vic.gov.au/victorian-energy-upgrades/products.
Who is eligible for VEU discounts?
- All Victorian households are eligible — there is no income or property-value test.
- Renters can access many discounts, though upgrades fixed to the property (heating and cooling, hot water) need landlord approval.
- The home must be in Victoria, and the work must be carried out through an accredited provider using approved products.
How do I access a VEU discount?
- Decide which upgrade you want — ideally informed by an assessment of where your home actually loses energy.
- Find an accredited provider. Only accredited providers can apply the discount; the official list is published on the VEU products page.
- Get quotes from more than one provider — discounts vary, so comparing quotes matters more here than with fixed rebates.
- The provider manages the paperwork and installation, and the discount is deducted from your invoice.
Can VEU discounts be combined with other rebates?
Yes. The most valuable combination for most households is heat pump hot water: an eligible household can stack a VEU discount with a Solar Victoria hot water rebate (up to $1,000, or up to $1,400 for locally made products) on the same installation, provided the retailer is authorised under both programs. The Solar Victoria rebate is calculated after the VEU discount is applied. Note the Solar Victoria side is means-tested (household income under $150,000) while VEU is not, so some households will qualify for the VEU discount only.
Frequently asked questions
Do I apply for a VEU discount myself?
No. Only accredited providers can apply the discount. You choose a provider (or an installer working with one), they confirm the upgrade is eligible, and the discount comes off your quote at the point of sale. There is no claim-back form for households.
Can renters benefit from Victorian Energy Upgrades?
Yes. All Victorian households are eligible, and renters can access many discounts directly. Upgrades fixed to the building, such as heating and cooling or hot water systems, require the landlord's approval first.
How much can I save on a heat pump hot water system?
The Victorian Government cites savings of up to $630 on upfront costs for upgrading to a heat pump hot water system, plus up to $400 a year on energy bills. Exact discounts vary by provider and product, so compare quotes.
Why do VEU discount amounts vary between providers?
Each upgrade creates Victorian energy efficiency certificates (VEECs) based on the greenhouse gas savings it delivers. Providers sell those certificates to energy retailers, and the certificate market price flows through to the discount you are offered. That is why the same upgrade can attract different discounts from different providers.
Is VEU the same as the Solar Victoria rebate?
No — they are separate programs. VEU provides point-of-sale discounts through accredited providers, while Solar Victoria (the Solar Homes Program) provides means-tested rebates for solar panels and hot water. For heat pump hot water, an eligible household can combine both on the same installation.
Is there an income test for VEU discounts?
No. Unlike Solar Victoria rebates, VEU discounts are available to all Victorian households regardless of income or property value.
Related rebate guides
Not sure which upgrade to discount first?
VEU covers many upgrades, but they do not all pay back equally in every home. A home energy assessment shows where your home loses the most energy, so you put discounted dollars into the upgrades that actually shift your bills.