By Victorian Air Conditioning Solutions | March 2026
Melbourne’s weather is relentless — scorching 40°C summers, bitter 3°C winter mornings, and everything in between. If your home still relies on old gas heating or an ageing split system, you are paying far more than you need to, and the Victorian Government is actively paying you to change that.
The Victorian Energy Upgrades (VEU) program provides upfront discounts of up to $5,530 when replacing a ducted gas heater with a reverse-cycle air conditioning system — and up to $1,610 when replacing a gas space heater (energy.vic.gov.au, 2026). That means your new system could cost you far less than you think — before you even consider operating savings.
Two brands come up more than any other in Melbourne VEU installations: Daikin and Rinnai. Both are VEU-eligible. Both are reliable. But they are genuinely different — and choosing the right one for your home, your suburb, and your situation matters.
This is the honest, fact-checked guide you need — from Victoria’s trusted VEU installer.
What Is the VEU Program — and How Does It Work?
The Victorian Energy Upgrades (VEU) program is a Victorian Government initiative that helps households and businesses upgrade to energy-efficient products by providing upfront discounts. You don’t claim a rebate after the fact — the discount is applied directly to your installation cost before you pay a cent.
The program is open to every Victorian household and business. There are no income requirements. The only eligibility condition is that your property must be more than 2 years old.
| VEU Rebate Amounts for Air Conditioning — 2026 (Official: energy.vic.gov.au)
Replacing a ducted gas heater with reverse-cycle DUCTED system: Up to $5,530 discount Replacing a ducted gas heater with reverse-cycle MULTI-SPLIT system: Up to $5,530 discount Replacing a gas space heater with a reverse-cycle split system: Up to $1,610 discount Replacing an old split system with a new reverse-cycle system: $200 to $1,400 discount New reverse-cycle installation (no existing system replaced): $70 to $280 discount
Important: From 1 February 2025, minimum customer co-payments apply: • $200 minimum for single non-ducted systems under 10kW • $1,000 minimum for multi-split and ducted systems The rebate is NOT the full price — it is a substantial discount applied upfront. |
Every product installed under VEU must be on the VEU approved product register (maintained by the Essential Services Commission), must carry a minimum 5-year warranty, and must be installed by a experienced Provider — like Victorian Air Conditioning Solutions. We manage all paperwork on your behalf.
| Both Daikin and Rinnai are VEU-eligible brands
Both brands manufacture systems that appear on the VEU approved product register. Both meet the minimum 5-year warranty requirement under VEU rules. Either brand can be installed under the program — the choice comes down to your specific home, your climate zone, and your priorities. That is exactly what this guide is for. |
Daikin — What You Need to Know
Daikin Industries was founded in Osaka, Japan, in October 1924 — originally as an aircraft component manufacturer before pivoting entirely to air conditioning. Today, Daikin is the world’s largest air conditioning manufacturer, operating across 173 countries with over 96,000 employees and revenues exceeding ¥3.6 trillion (Daikin 100 Years official data, 2024). Air conditioning is their only business. That singular focus shows in the consistency and quality of their products.
For Melbourne homeowners, Daikin is the benchmark premium brand. Their inverter technology is widely regarded as class-leading, their energy star ratings are among the highest available for each system category, and their product range covers everything from compact single-room split systems to whole-home ducted installations.
Daikin — Key Facts for Melbourne Buyers
- Founded 1924 in Osaka, Japan. Air conditioning is their only business.
- World’s largest air conditioning manufacturer (173 countries, 96,000 employees).
Rinnai — What You Need to Know
Rinnai Corporation was founded in Nagoya, Japan in 1920 — four years before Daikin — by Kanekichi Hayashi and Hidejiro Naito as a gas appliance manufacturer. Today Rinnai is Japan’s largest manufacturer of gas kitchen appliances and operates a comprehensive air conditioning division that has been active in Australia since 1971. That is over 50 years of Australian air conditioning experience.
Rinnai’s reputation in Australia is built primarily on hot water systems, but their air conditioning range is genuinely well-established and widely installed. Their systems are built to Australian conditions and backed by a strong local service and parts network.
Rinnai — Key Facts for Melbourne Buyers
- Founded 1920 in Nagoya, Japan — 4 years older than Daikin. Air conditioning in Australia since 1971.
| Important correction — Rinnai warranty is 7 years, not 5
Many sources online — including competitor articles — incorrectly state Rinnai offers a ‘5-year warranty’. This is outdated. Rinnai Australia upgraded to a 7-YEAR warranty (parts and labour) from September 2024, confirmed and expanded from April 1, 2025. (Source: rinnai.com.au; HVAC&R News April 30, 2025).
This means Rinnai now offers 2 MORE years of warranty protection than Daikin on most models. Rinnai WINS on warranty in 2026 — not ‘broadly comparable’ as some sites claim. |
Daikin vs Rinnai — The Honest Head-to-Head for VEU Buyers
Here is how these two brands compare across the factors that matter most to Melbourne homeowners looking to upgrade under the VEU program:
Energy Efficiency — Who Saves You More on Running Costs?
Daikin leads on energy efficiency across most size categories, particularly in the small-to-medium range. According to average COP (Coefficient of Performance) and EER (Energy Efficiency Ratio) analysis by SimplyAir (April 2025), Daikin provides the most energy-efficient range among the major brands available in Australia. Their flagship Alira X 6kW achieves EER 4.05 and COP 4.47.
Rinnai’s systems are genuinely efficient and VEU-eligible — their inverter technology is solid and many models carry competitive star ratings. However, in direct model-by-model comparison, Daikin typically edges ahead on efficiency numbers.
In Victoria, where electricity costs 26–35 cents per kWh, efficiency differences compound over years. A system with a COP of 4.5 vs 3.8 can save you $80–$150 per year in running costs on a typical Melbourne home — across a 15-year system life, that is $1,200–$2,250.
| Energy verdict
Daikin wins on energy efficiency — particularly in small to medium systems. For buyers prioritising the lowest possible running costs over time, Daikin’s higher star ratings deliver measurable long-term advantage. |
Warranty — Who Protects You Longer?
This is where 2026 changes the comparison completely — and where many online articles are giving you outdated information.
| Warranty aspect | Daikin | Rinnai |
| Parts warranty | 5 years | 7 years (from September 2024) |
| Labour warranty | 5 years | 7 years (from September 2024) |
| Applies to | Residential split, multi, ducted | Wide selection of residential systems |
| Condition | Must use authorised installer | Must use authorised installer |
| Source confirmed | daikin.com.au/warranty | rinnai.com.au; HVAC&R News April 2025 |
| Warranty verdict — Rinnai wins in 2026
Rinnai now offers a 7-year warranty vs Daikin’s 5-year warranty — 40% more warranty coverage. This is a significant and recent change. Many competitor comparison articles still say ‘5 years’ for Rinnai — they are wrong. Victorian Air Conditioning Solutions installs both brands as trusted & experienced installers, activating the full warranty. |
Price and VEU Value — What Does Your Upgrade Actually Cost?
Under the VEU program, the upfront price gap between Daikin and Rinnai narrows — because VEU discounts are applied to both brands equally based on what system you’re replacing, not which brand you choose.
| Scenario | Approx. Daikin system cost | Approx. Rinnai system cost | VEU discount (both brands) | Your out-of-pocket (approx.) |
| Replace gas space heater — split system (supply + install) | $1,500–$2,500 | $1,200–$2,000 | Up to $1,610 | $200 minimum co-payment applies |
| Replace ducted gas — multi-split system | $6,000–$10,000 | $5,000–$8,000 | Up to $5,530 | Significant reduction on both |
| Replace old split system — new split system | $1,400–$2,200 | $1,100–$1,800 | $200–$1,400 | Lowest cost option |
Source: VEU rebate amounts from energy.vic.gov.au. System cost ranges are estimates — get a free exact quote from Victorian Air Conditioning Solutions by calling 1300 001 392.
| Price verdict
Rinnai is more accessible upfront — typically 10–20% below comparable Daikin models. Under VEU, both brands benefit from the same discount structure, so the Rinnai price advantage persists after rebates. Daikin’s higher efficiency may recover the price difference through lower electricity bills over time — this depends on your usage. |
Smart Features and App Control
Daikin leads clearly on smart home integration. Most current Daikin residential models (Cora, Alira X, Zena) include built-in Wi-Fi as standard, full control via the Daikin smartphone app, and compatibility with Google Home and Amazon Alexa — confirmed on daikin.com.au product specifications.
Rinnai offers Wi-Fi and app control on select newer models, but coverage is not as comprehensive across the range. For tech-savvy Melbourne homeowners who want their air conditioning integrated into a broader smart home, Daikin is the stronger choice.
| Smart features verdict
Daikin wins on smart features — built-in Wi-Fi and voice assistant compatibility is standard across most of their range. |
Cold-Climate Heating Performance — Important for Melbourne Winters
Melbourne’s winter is genuine — 3–8°C overnight, regularly dipping below 5°C in outer suburbs and regional areas. Both brands perform reliably in Melbourne’s actual climate. The cold-climate specification difference is most relevant for Ballarat, Bendigo, the Dandenong Ranges, and the Mornington Peninsula Hinterland.
Standard Daikin models (Cora, Alira X) operate efficiently down to -10°C with reduced output below that. Premium Daikin models (Ururu Sarara FTXZ series) maintain heating to -15°C — but these sit at the top of the price range. Rinnai systems perform reliably across Melbourne’s general climate and most regional Victorian conditions.
| Cold climate verdict
Daikin’s premium series has measurable cold-climate advantage for Ballarat, alpine regions, and consistently cold outer suburbs. For general Melbourne metro use — Daikin standard and Rinnai are both fully appropriate. Ask our team which applies to your location — it affects the system recommendation. |
The Complete 2026 Verdict — At a Glance
| Category | Winner 2026 | Key Reason |
| Energy efficiency | Daikin | Higher average EER and COP across most size categories |
| Warranty coverage | Rinnai (7 yrs) | 7-year parts & labour vs Daikin’s 5 years — updated Sept 2024 |
| Upfront price | Rinnai | Typically 10–20% lower before and after VEU discount |
| Smart home features | Daikin | Built-in Wi-Fi, app control, Google Home, Alexa — standard |
| Cold-climate heating | Daikin (premium) | Standard models both fine for Melbourne. Premium Daikin for alpine/Ballarat |
| VEU eligibility | Both equally | Both brands carry VEU-eligible models on the approved register |
| Value for money overall | Rinnai | 7-yr warranty + competitive efficiency + lower price = strong total package |
| Overall premium choice | Daikin | World’s most efficient range, fullest smart features, global reputation |
Which Brand Is Right for Your Melbourne Suburb?
Victoria’s climate varies more than most people realise. The right system for Doncaster is not the same as the right system for Ballarat. Here is our suburb-by-suburb recommendation:
| Melbourne area or suburb | Our recommendation | Why |
| Inner Melbourne, Brunswick, Richmond, Fitzroy | Daikin or Rinnai — split system | Compact homes, mostly rental market, $0 upfront via VEU, Rinnai offers great value |
| Eastern suburbs — Doncaster, Box Hill, Glen Waverley | Daikin (ducted or multi-head) | Large homes, high usage, efficiency savings significant over 15 yrs. Ducted VEU up to $5,530 |
| South-Eastern — Berwick, Cranbourne, Narre Warren | Daikin or Rinnai (multi-head or ducted) | Large family homes, big VEU discount on gas replacements. Both brands suitable |
| Western — Hoppers Crossing, Tarneit, Werribee | Rinnai (split or multi-head) | Budget-conscious families, Rinnai’s price advantage + 7yr warranty is compelling |
| Northern — Craigieburn, Epping, Melton | Rinnai (split or multi-head) | Newer homes, moderate gas penetration, Rinnai’s accessibility suits first-home buyers |
| Ballarat / Bendigo | Daikin (cold-climate model) | Cold winters require proven cold-climate performance. Specify Daikin model rated to -10°C+ |
| Mornington Peninsula, coastal areas | Daikin or Rinnai — specify coastal unit | Salt air needs coastal-rated outdoor unit regardless of brand |
| Frankston, Dandenong (cost-conscious) | Rinnai | 7-yr warranty + VEU discount + lower upfront = strongest value in this market |
How to Claim Your VEU Discount — Step by Step
The VEU process is straightforward when you work with an authorised provider. Victorian Air Conditioning Solutions handles every step:
- Call us on 1300 001 392 or book your free assessment online. We confirm your eligibility at no cost.
- We assess your home — existing heating system, room sizes, roof space, suburb location, and usage patterns.
- We recommend the right brand and model — Daikin or Rinnai — for your specific situation, and provide a clear quote including the VEU discount applied upfront.
- We check your property on the VEU product register and confirm your installation qualifies.
- We complete the installation — typically in a single day — and handle all VEU documentation, certificates, and compliance.
- Your new reverse-cycle system is commissioned, tested, and explained. You save on day one.
| You do not need to do anything government-related yourself
As a trustedProvider, Victorian Air Conditioning Solutions manages all Victorian Energy Efficiency Certificate (VEEC) creation, program compliance, and documentation. The VEU discount is applied directly to your installation invoice — you simply pay the discounted price. |
Frequently Asked Questions — VEU, Daikin and Rinnai
Q1: Do I need to remove my old gas heater to get the VEU discount?
Yes — to access the highest rebate values (up to $5,530 for ducted gas replacement), your existing gas heating system must be removed and replaced with the reverse-cycle system. The gas appliance is decommissioned as part of the installation. If you just want a new split system without removing an existing system, smaller discounts ($70–$280) still apply for new installations. Property must be over 2 years old in all cases.
Q2: Which brand does Victorian Air Conditioning Solutions recommend under VEU?
We install both Daikin and Rinnai, and we genuinely recommend the right brand for your specific situation. For maximum energy efficiency and smart features in a premium home, Daikin. For the best warranty coverage (7 years), accessible price point, and solid performance for most Melbourne homes, Rinnai. We tell you honestly — no commission pressure.
Q3: Is the Rinnai warranty really 7 years now?
Yes — confirmed. Rinnai Australia upgraded from 5 to 7 years parts and labour from September 1, 2024, and this was formally confirmed and expanded from April 1, 2025 (Source: rinnai.com.au; HVAC&R News, April 30, 2025). Many articles online — including some published in 2026 — still state ‘5 years’ for Rinnai. That is incorrect. The 7-year warranty applies when installed by Victorian Air Conditioning Solutions.
Q4: Can I get a VEU discount if I’m renting in Melbourne?
Yes — the VEU program is available to private rental properties. The Victorian Government’s position is that landlords and tenants should work together on upgrades. As a landlord, you access the VEU discount on the installation. Tenants benefit from the improved heating and cooling comfort.
Q5: Does the VEU program have an income test?
No. There is no income requirement under the VEU program. Every Victorian household and business is eligible regardless of income. The only condition is that the property must be more than 2 years old if you are replacing an existing system. Source: energy.vic.gov.au.
Q6: How long does a Daikin or Rinnai split system last?
Both brands are designed to last 10–15 years with proper maintenance. Quality installation is as important as the brand — an undersized or poorly installed system of any brand will fail earlier and cost more to run. Annual servicing, cleaning filters regularly, and not running the system at extreme temperatures all extend system life.
Q7: What is the minimum I have to pay under the VEU program?
From 1 February 2025, the VEU program introduced minimum customer co-payments. You must pay at least $200 for a single non-ducted system under 10kW, and at least $1,000 for multi-split or ducted systems. These are minimums — the final discounted price depends on your specific situation, brand, and model. Victorian Air Conditioning Solutions provides a full, transparent quote showing the VEU discount and your net payable cost. Source: energy.vic.gov.au.
Daikin or Rinnai?
Daikin if you want the world’s most efficient inverter technology, comprehensive smart home control, and the assurance of the global market leader. Ideal for premium Melbourne homes, cold-climate suburbs, and energy-conscious buyers who want the lowest possible running costs long-term.
Rinnai if you want excellent reliability, a genuinely strong 7-year warranty (better than Daikin’s 5 years), and an accessible upfront price that makes the most of your VEU discount. Ideal for families, rental properties, and any Melbourne homeowner who wants quality without the premium brand price.
Either way — the VEU discount applies equally to both brands. The most important decision is choosing an authorised provider who sizes the system correctly, installs it properly, and handles all the paperwork. That is what Victorian Air Conditioning Solutions does on every job.
| Ready to Upgrade Under the VEU Program?
Book your FREE assessment today. We’ll confirm your eligibility, recommend the right system, and handle all the VEU paperwork — at no cost to you. 📞 1300 001 392 www.victorianairconditioningsolutions.com.au | Serving All Melbourne Suburbs & Regional Victoria |
Sources & Disclaimer
VEU rebate figures sourced from energy.vic.gov.au (official Victorian Government VEU program page, confirmed March 2026). Daikin warranty confirmed at daikin.com.au/warranty. Rinnai 7-year warranty confirmed at rinnai.com.au and HVAC&R News (April 30, 2025). Energy efficiency data (EER/COP) sourced from SimplyAir.com.au energy efficiency analysis (April 2025) and energyrating.gov.au. Daikin founding history from daikin.com 100 Years official page. Rinnai founding history from Rinnai Corporation corporate history (rinnai.co.jp). VEU minimum co-payment rules effective February 1, 2025 confirmed at energy.vic.gov.au. System pricing ranges are indicative estimates — contact Victorian Air Conditioning Solutions for exact quotes. This article is 100% original content prepared by Victorian Air Conditioning Solutions. Last updated March 2026.
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