The Victorian Energy Upgrades (VEU) program offers significant rebates on energy-efficient air conditioning — and when paired with Wi-Fi-enabled smart technology, the savings go even further. This guide covers everything Victorian homeowners and businesses need to know in 2026.

Up to $7,200 Max rebate (ducted gas replacement)

40 – 60% Of household energy on heating & cooling

2045 Program extended for long-term certainty

 

 

OVERVIEW

What Is the Victorian Energy Upgrades Program?

The Victorian Energy Upgrades (VEU) program, managed by the Essential Services Commission (ESC), helps households and businesses across Victoria reduce greenhouse gas emissions by offering upfront discounts on approved energy-efficient products — including reverse-cycle air conditioning systems.

Rather than a cash rebate you claim later, the discount is applied directly at the point of sale through an accredited provider. You pay the reduced price. No paperwork headaches, no waiting.

The program works through Victorian Energy Efficiency Certificates (VEECs) — each certificate represents one tonne of greenhouse gas emissions avoided. Accredited providers create and sell these to energy retailers, and the proceeds fund your upfront discount.

 

PROGRAM TIMELINE Under the Victorian Energy Efficiency Target Amendment Bill, the VEU program has been extended to 2045 (previously 2030). Between 2022 and 2027 alone, the program is projected to save 37 million tonnes of greenhouse gas emissions — equivalent to taking more than 11 million cars off the road for a year.

 

WHAT YOU CAN SAVE

How Much Is the Rebate Worth in 2026?

Rebate values vary depending on what you’re replacing and which system type you install. The table below summarises current indicative ranges based on official VEU program data.

 

System type	Upfront rebate	Notes
Replace ducted gas with reverse cycle	Up to $7,200	Highest rebate tier. Old system must be decommissioned. Ducted or multi-head split system eligible.
Single split system install	$210 – $1,610	Upfront cost saving. Plus up to $460/yr energy bill reduction.
Multi-head split system	Up to $7,200	Multiple indoor units from one outdoor unit. Strong rebate when replacing old heating.
New install (no replacement)	Lower amount	Still eligible. Rebate is lower as no inefficient system is being removed.

 

REBATES ARE APPLIED UPFRONT You do not pay full price and claim a rebate later. The discount is applied immediately in your quote from an accredited provider. You only pay the reduced amount at time of installation — there is no rebate form to complete yourself.

 

Minimum Co-Payments (from 1 February 2025)

To ensure genuine consumer investment in upgrades, minimum co-payment requirements now apply:

 

$200 Non-ducted systems under 10kW (incl. GST)

$1,000 Non-ducted systems over 10kW (incl. GST)

$1,000 Multi-split and all ducted systems (incl. GST)

 

These are minimum amounts. Your total installation cost will depend on the system chosen and any additional site requirements.

WHO QUALIFIES

Eligibility: Who Can Claim a VEU Rebate?

The VEU program has remarkably broad eligibility. If you’re in Victoria, you almost certainly qualify.

 

Category	Eligible?	Notes
Homeowners	YES	All Victorian postcodes. No income testing required.
Renters / Tenants	Conditional	Eligible with written landlord consent for permanent installation.
Businesses (ABN holders)	YES	Covers sole traders, partnerships, companies and corporations.
Property age	2+ years	Property must be at least 2 years old at time of installation.
New builds	Lower rebate	New installs without replacing an existing system qualify at reduced level.
Replacement upgrades	Highest rebate	Replacing an existing inefficient system unlocks the largest discounts.

 

SYSTEM REQUIREMENTS The VEU program exclusively supports reverse-cycle air conditioners — systems capable of both heating AND cooling. Heating-only or cooling-only units do not qualify. The unit must also be on the VEU approved product register and installed by an accredited provider.

 

SMART TECHNOLOGY

Wi-Fi Air Conditioners: Smart Features That Genuinely Save Money

Wi-Fi-enabled air conditioners qualify for VEU rebates just like standard units — but they offer an extra layer of long-term savings through smarter energy management. Here’s how:

 

• Remote control via smartphone: Switch your system on or off from anywhere. Never come home to a house that’s been running the air con all day needlessly.
• Scheduling & automation: Pre-set cooling or heating times to match your daily routine. Arrive home to the perfect temperature without wasting energy all afternoon.
• Real-time energy monitoring: Track energy consumption patterns over time. Identify when you’re using the most power and adjust settings to reduce waste.
• Auto-adjustment technology: Modern inverter systems adjust output based on current temperature and humidity — maintaining comfort while minimising power draw.

 

Wi-Fi-enabled systems qualify for VEU rebates provided the unit is on the approved register and installed by an accredited provider. Most current models from Daikin, Mitsubishi, Panasonic, Samsung, and Midea include built-in Wi-Fi as standard.

SYSTEM TYPES

Which Air Conditioning Systems Qualify Under VEU?

The program covers three main system categories, each suited to different home sizes and needs:

 

Single-split (reverse-cycle) systems: One outdoor unit, one indoor unit. Ideal for a single room or open-plan living area. Capacities typically range from 2.5kW to 9kW. One of the most commonly approved upgrades under the VEU program.

Multi-head split systems: One outdoor unit connected to multiple indoor units across different rooms. Provides zone-controlled heating and cooling at a more affordable cost than ducted systems. Eligible for higher rebate tiers.

Ducted reverse-cycle systems: Whole-home coverage via a central system and roof-space ductwork. Higher upfront cost but highest rebate potential — particularly when replacing an existing ducted gas heater. Eligible for rebates up to $7,200.

 

PRO TIP: HIGHER STAR RATINGS = MORE CERTIFICATES = BIGGER REBATE Systems with an Energy Efficiency Ratio (EER) above 4.0 and Coefficient of Performance (COP) above 4.0 generate more VEECs — which typically translates to a larger upfront discount. Always ask about the energy star rating before choosing a model.

 

THE PROCESS

How to Claim Your VEU Rebate — Step by Step

The process is designed to be straightforward. When you work with us, the rebate handling is done for you.

 

1. Free onsite assessment — We visit your home, assess your current system, layout, and heating/cooling needs. We confirm eligibility and recommend the best VEU-approved system for your situation.
2. Choose your VEU-approved system — Select from a range of high-efficiency reverse-cycle systems on the VEU approved register. We advise on the model that maximises your rebate and long-term savings.
3. Receive a quote with the rebate already applied — Your quote reflects the post-discount price. You don’t pay full price upfront and claim later — the saving comes straight off your invoice.
4. Professional installation by licensed technicians — Our team installs your new system to manufacturer specifications and Australian Standards. Old systems are properly decommissioned — a requirement for the highest rebate tiers.
5. We handle all VEEC documentation & compliance — Post-installation we manage all required documentation, VEEC creation, and submission to the VEU registry. Your system comes with a mandatory 5-year warranty under 2025 VEU updates.

 

RETROSPECTIVE REBATES In some circumstances, retrospective rebates are possible — but must be processed within 6 months after the end of the calendar year in which the upgrade took place. For example, a 2025 upgrade must have its rebate submitted by 30 June 2026. Always engage an accredited provider before installation.

 

2026 UPDATES

What’s New for the VEU Program in 2026

The program has seen several significant updates that affect how you access rebates this year:

 

• Program extended to 2045: Under the Victorian Energy Efficiency Target Amendment Bill, the program horizon has been extended from 2030 to 2045, giving households long-term certainty for major electrification upgrades.
• VEEC creation deadline removed (from 21 May 2025): The previous deadline for creating VEECs has been removed, streamlining the process for accredited providers and reducing delays.
• Mandatory 5-year product warranty: From 31 March 2025, all heating, cooling, and hot water products installed under VEU must include a 5-year warranty against defects from date of installation.
• New VEU Registry system launched June 2025: A modernised registry now handles VEEC creation, assignment, and compliance tracking — improving transparency for providers and customers.
• Stronger emphasis on gas-to-electric transitions: The program increasingly favours reverse-cycle and heat pump technologies over gas systems. Gas replacement upgrades continue to attract the highest rebate tiers.

 

COMMON QUESTIONS

Frequently Asked Questions

Q  Do Wi-Fi air conditioners qualify for VEU rebates?

Yes. Wi-Fi connectivity does not affect VEU eligibility. What matters is whether the specific model is on the VEU approved product register and whether it is installed by an accredited provider. Most current Wi-Fi-enabled reverse-cycle models from major brands qualify.

Q  Can I control my new air conditioner with my phone?

Yes. Wi-Fi-enabled systems allow full remote control via a smartphone app — including on/off switching, temperature adjustment, scheduling, and (on many models) energy usage monitoring.

Q  Do I have to pay the full amount and claim a rebate later?

No. When you work with an accredited provider, the rebate is applied directly to your quote. You only pay the discounted price at time of installation — there is no rebate form to submit yourself.

Q  Can renters access VEU rebates?

Yes, with conditions. Tenants can access VEU rebates with their landlord’s written consent for the installation of a permanent system. Once consent is obtained, renters can proceed through an accredited provider in the same way as homeowners.

Q  Is there an income test for the VEU rebate?

No. VEU rebates are available to all Victorian households and businesses regardless of income. There are no means-testing or income thresholds to meet.

Q  What happens to my old system?

Proper decommissioning and disposal of the old system is required under the VEU program — particularly when claiming the highest rebate tiers. We handle all decommissioning as part of our installation service.

Q  How long does installation typically take?

A standard split system installation is typically completed in 3–6 hours. Multi-head and ducted system installations may take 1–2 days depending on the home’s size and existing infrastructure. We’ll provide a clear timeline during your free assessment.

 

 

Ready to Upgrade? Start With a Free Assessment. We handle everything — from system selection and rebate paperwork to professional installation. Find out exactly how much you can save before committing to anything. 📞  1300 001 392 ✉  info@victorianairconditioningsolutions.com.au

 

Disclaimer: Rebate amounts are indicative based on current VEU program data and may change. All figures sourced from the Essential Services Commission and Victorian Department of Energy. Always confirm eligibility with an accredited provider before installation.

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