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Understanding Victoria’s Heating & Cooling Upgrades in 2025: What’s Eligible and What’s Not

By Victorian Air Conditioning Solutions

As Victoria advances its energy-efficiency goals, the VEU program continues to evolve. For homeowners looking to replace under-floor or ceiling heating, gas ducted systems, or old air-conditioning units—knowing the current rules is essential to avoid surprises and maximise savings.


🔍 What the VEU Program Covers in 2025

The VEU program supports energy-efficient upgrades for space heating and cooling under Activity 6 (High-Efficiency Air Conditioners) and other activities. esc.vic.gov.au
Key points for 2025 include:

  • Eligible products must be listed in the VEU Product Register and installed by an accredited provider. Energy

  • The property must be in Victoria and at least two years old. esc.vic.gov.au

  • Rebates/discounts vary based on the type of system being replaced (gas heating, electric resistance, older AC) and the new system’s efficiency rating.


✅ What Repairs or Replacements Are Eligible

Here are upgrade scenarios that typically qualify:

  • Replacing a gas ducted heating system with a high-efficiency reverse-cycle air-conditioner (split, multi-head or ducted).

  • Replacing an old inefficient AC system with a VEU-approved high-efficiency model. Victorian Air conditioning Solutions+1

  • Upgrading whole-home heating/cooling with a ducted reverse-cycle system that meets performance criteria.

❌ What Upgrades May Not Qualify

Certain installations are often excluded or may receive a much smaller incentive:

  • Stand-alone under-floor or ceiling radiant heating systems that aren’t part of a full heating/cooling system upgrade.

  • Replacements involving non-approved products or non-accredited installers.

  • Cooling-only systems (i.e., no heating capacity) may not meet the “high efficiency air-conditioner” criteria under Activity 6.

  • Properties less than two years old or systems already upgraded via VEU recently.


📊 Typical Rebate / Discount Amounts (2025 Estimates)

While exact amounts depend on system size, existing equipment and installer, here are indicative figures:

  • Split system replacing a gas heater: ~$1,560–$3,120 in incentives for a 7 kW split.

  • Ducted system replacing electric resistance: potentially up to ~$5,000–$7,700.

  • Note: the values vary depending on VEEC prices, system size, and the installer’s accreditation.


🛠 How Victorian Air Conditioning Solutions Can Help

At Victorian Air Conditioning Solutions, we guide you through the entire process:

  • ✅ Eligibility check and system suitability

  • ✅ Selection of VEU-approved products

  • ✅ Installation by accredited technicians

  • ✅ Processing your incentive application

This ensures your upgrade is compliant and you maximise your benefit.


🔑Don’t let confusion around eligibility rules cost you thousands in missed incentives. The VEU program for heating and cooling is robust—but only if you use accredited installers and approved systems.
If you’re planning an upgrade in 2025, speak with Victorian Air Conditioning Solutions to make sure you’re getting the best offer and full compliance.

📞 Contact us today: 1300 001 392
🌐 Visit: victorianairconditioningsolutions.com.au

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