Rebate guide — Victoria
Victoria's rental energy efficiency standards: what rental providers must do, and when
From 1 March 2027, Victorian rental properties must meet new minimum energy efficiency standards for insulation, heating, hot water, cooling and shower heads — triggered at new leases or when appliances fail, not all at once. Renters also have income-tested help through Solar for Rentals and Victorian Energy Upgrades discounts.
Last updated: 11 July 2026
What are Victoria's new rental energy efficiency standards?
The Residential Tenancies Amendment (Minimum Energy Efficiency Standards) Regulations 2025 set minimum standards for insulation, heating, hot water, cooling and shower heads in Victorian rental properties. Most standards commence on 1 March 2027 — an earlier commencement date floated during consultation has been superseded, so check you're reading current guidance.
The standards are trigger-based rather than a single deadline for every property: most apply when a fixed appliance permanently fails and needs replacing, or when a new lease or month-to-month conversion happens, not retroactively to everything already installed. Full detail is on the Consumer Affairs Victoria minimum standards page.
What exactly do rental providers need to do, and when?
- Ceiling insulation — R5.0 or higher, installed by a qualified installer, at a new lease or month-to-month conversion, from 1 March 2027.
- Heating — when an existing fixed heater permanently fails, it must be replaced with an electric unit rated at least 2 stars under GEMS (ducted systems: HSPF of 3.2 or higher), from 1 March 2027.
- Hot water — when the existing system permanently fails, it must be replaced with an electric system only: a heat pump or electric-boosted solar hot water unit. This is a replacement-at-failure rule, not a requirement to remove a working gas system, and it starts 1 March 2027.
- Cooling — a minimum 3-star rating (ducted systems: TCSPF of 3.8 or higher), required at new leases from 1 March 2027, extending to all rental properties from 1 July 2030.
- Shower heads — 4-star WELS rating (3-star as a fallback), required at new leases from 1 March 2027.
- Draughtproofing — from 1 July 2027, but only after a licensed plumber's gas safety check less than 6 months old. Work is blocked if the check finds unflued or open-flued gas appliances.
- Blind and curtain cord anchors — a safety (not energy) requirement, already in force since 1 December 2025.
Are there exemptions?
Exemptions can apply where:
- The property is heritage-listed.
- Owners corporation rules prevent the change (for example, in some apartment buildings).
- The relevant system is shared or centrally controlled rather than specific to the rental property.
- The required space is inaccessible.
- Compliance would be disproportionately costly, which is assessed with apartments in mind.
What can renters do if a property doesn't comply?
- Request a repair from the rental provider, and apply to VCAT for an order if it's refused.
- If you move into a property that's already non-compliant, you can end the rental agreement without paying a break fee.
- Repairs up to $2,500 can be arranged by the renter directly and claimed back from the rental provider.
- The rental provider must cover the extra utility cost caused by a non-compliant appliance until it's fixed.
- Penalties apply for advertising or letting a non-compliant property, though specific amounts aren't published on the official guidance.
What help is available to meet the standards?
- Solar for Rentals — a rebate of up to $1,400 plus an interest-free loan of up to $1,400 (4-year term, around $29 a month), up to $2,800 combined. Renters' combined household income must be under $150,000 a year (reduced from $210,000 on 1 July 2026), and installation costs cannot be recouped through a rent increase or the bond. Details: solar.vic.gov.au/solar-rebates-rental-properties.
- Victorian Energy Upgrades (VEU) — point-of-sale discounts that explicitly apply to rental properties, with renters eligible for hot water, heating/cooling and weather sealing discounts (landlord and tenant cooperation is recommended for fixed upgrades). Current indicative discounts: heat pump hot water $560–$630; heating/cooling up to $1,610 for a room gas heater replaced with a reverse-cycle air conditioner, or up to $5,530 for ducted systems depending on capacity; weather sealing $70–$700 depending on dwelling type and warranty. Ceiling insulation discounts of up to $1,482 (metro) or $2,104 (regional) become available to all eligible homes from 1 October 2026 — before then, insulation discounts are limited to social housing. A $200 minimum customer contribution applies. Details: energy.vic.gov.au/victorian-energy-upgrades/homes.
Should I get a home energy assessment before the standards apply?
Compliance with the standards is spec-based, not audit-based — there is no legal requirement to get a home energy assessment before 1 March 2027. That said, an assessment is a practical way for a rental provider to work out, property by property, which standards a home currently fails and which upgrades to sequence first, rather than reacting when a heater or hot water system fails and the clock is already running.
Frequently asked questions
Do I have to upgrade my rental property right now?
No. The standards are trigger-based, not a one-off deadline for every property. Most requirements start from 1 March 2027 and apply when you sign a new lease, convert to month-to-month, or replace a fixed appliance that fails. The cooling standard is the exception: it applies to new leases from 1 March 2027, then to all rental properties from 1 July 2030.
My rental's gas hot water system just broke — what do I need to install?
From 1 March 2027, a hot water system that permanently fails must be replaced with an electric system — a heat pump or electric-boosted solar hot water unit. This is a replacement-at-failure rule, not a requirement to remove a working gas system before then.
How much does Solar for Rentals give renters?
Up to $1,400 as a rebate plus up to $1,400 as an interest-free loan (repaid over 4 years, around $29 a month) — up to $2,800 combined. It applies where the renters' combined household income is under $150,000 a year, a threshold that dropped from $210,000 on 1 July 2026.
Can my rent go up to cover a Solar for Rentals installation?
No. Installation costs under Solar for Rentals cannot be recouped through a rent increase or from the bond.
What can I do as a renter if my property doesn't meet the standards?
You can request a repair and apply to VCAT for an order if the rental provider refuses. Moving into a property that's already non-compliant lets you end the agreement without a break fee. You can also arrange repairs yourself up to $2,500 and be reimbursed, and the provider must cover the extra utility cost caused by a non-compliant appliance until it's fixed.
What's the ceiling insulation standard for rentals?
R5.0 or higher, installed by a qualified installer, required at a new lease or a month-to-month conversion from 1 March 2027.
Related rebate guides
Which of your rentals need attention first?
With standards phasing in from 2027 and again in 2030, a home energy assessment shows exactly where each property stands today — insulation, heating, hot water and cooling — so you can sequence upgrades ahead of the deadlines instead of scrambling when an appliance fails.