The VEU rebate, explained in plain English.

Last checked: 29 August 2026

The short version. The Victorian Energy Upgrades (VEU) program discounts an efficient electric system, such as reverse-cycle heating and cooling or heat-pump hot water. An accredited provider does the paperwork and takes the discount straight off your invoice. You pay a set minimum co-payment on top, and that minimum is going up for bigger systems on 30 September 2026.

What is the VEU rebate?

Victorian Energy Upgrades is a state government program, overseen by the Essential Services Commission, that lowers the cost of switching to efficient electric appliances. When you install an eligible system, an accredited provider generates energy-saving certificates (VEECs) for the upgrade and passes that value to you as an upfront discount. You don't apply to the government or wait for a rebate cheque; the discount is built into your quote.

New to all this? Start with our guide to getting off gas in Victoria for the rules, the dates and your options.

Who's eligible?

In broad terms, you're likely eligible if you're a Victorian household putting in an eligible efficient electric system, most commonly reverse-cycle (heat pump) heating and cooling, or heat-pump hot water, through an accredited provider. Eligibility depends on the specific activity and product, so the reliable way to confirm it is to have an accredited installer check your job. Rebate work has to be done by a VEU Accredited Person, which is why a rebate job only goes to an installer we've verified as accredited.

How much is it worth?

There's no single number, because the discount depends on the system size, the exact model, where you are in Victoria, and the market price of the certificates on the day. As an indicative guide only, some Melbourne installers advertise discounts of up to around $5,500 off a ducted reverse-cycle system, and more for a multi-split, before the co-payment. Heat-pump hot water is also eligible, with the amount varying by product.

Treat those as ballpark figures, not a promise. The number that matters is the one your installer calculates for your home, and it's shown as a discount on your quote.

The 30 September 2026 change, in detail

This is the one moving part worth timing. From 30 September 2026 the Victorian Government is raising the minimum co-payment and capping the rebated capacity for space heating and cooling:

• Minimum co-payment: up from $1,000 to $3,000 (inc GST) for ducted systems and multi-split systems with 10kW or more of cooling capacity. Systems under 10kW cooling stay at $1,000.
• 20kW cap: capacity beyond roughly 20kW no longer earns extra rebate.
• Timing: the lower co-payment applies only to installs completed and accredited before 30 September 2026. A quote or a booking on its own doesn't lock it in.

So if you're planning a whole-home ducted or large multi-split switch, getting it finished before the deadline could save you about $2,000 on the minimum out-of-pocket. For a single small split, the change doesn't apply.

What's the co-payment?

The co-payment is the minimum amount you pay out of pocket, on top of the rebated value. It exists so the program discounts rather than fully funds an upgrade. In practice your installer's quote shows the system price, the VEU discount, and your co-payment, so you see the net figure before you commit.

How do you claim it?

You mostly don't have to. Through an accredited installer it looks like this:

• You get a fixed-price quote with the rebate already deducted.
• You book the install.
• The system goes in, any old gas appliance is decommissioned, and an Electrical Certificate of Safety is issued.
• The installer lodges the VEU paperwork and creates the certificates. You sign a short consent form, and that's your part done.

Why accreditation matters

A VEU discount is only valid if the work is done through an accredited provider by a VEU Accredited Person. If an unaccredited installer promises you a rebate, the discount may simply not be claimable. That's why, when a job needs the rebate, we only match you with an installer whose accreditation we've verified. It protects your discount and keeps the promise real.

Questions people ask