Victorian Energy Upgrades (VEU) Program
VEU Rebates
The Victorian Energy Upgrades (VEU) program is a Victorian Government initiative that makes energy-efficient upgrades significantly cheaper — and in some cases free — for eligible households and businesses. Administered by the Essential Services Commission (ESC), the program works by requiring energy retailers and other obligated parties to fund subsidised installations through accredited providers. At Goldworks Electrical, we help Melbourne South East residents and property managers access these subsidies quickly, with minimum fuss and disruption to the property.
If you’ve been wondering whether you qualify — or what you’d actually save — this page answers those questions plainly.
What Is VEU?
The VEU program replaced the former Victorian Energy Efficiency Target (VEET) scheme and has been running in various forms since 2009. The underlying mechanism uses Victorian Energy Efficiency Certificates (VEECs). When an accredited provider installs an approved upgrade at your property, VEECs are created based on the estimated lifetime energy savings of that upgrade. Those certificates are sold to obligated energy retailers, and the value flows back to you as a discount on the cost of installation — sometimes covering the full cost.
The ESC oversees the scheme, sets the rules for accreditation, and publishes the register of approved activities and providers. The Department of Energy, Environment and Climate Action (DEECA, formerly DELWP) sets the policy framework. For you as a property owner or tenant, the practical upshot is straightforward: certain upgrades that would normally cost hundreds or thousands of dollars become dramatically cheaper because the certificate value offsets the price.
Upgrades Available Under
The scheme covers a wider range of products than most people realise. Below are the main upgrade categories relevant to Melbourne households and small businesses.
Eligible upgrade types currently available through the VEU program include:
- Reverse-cycle air conditioning — High-efficiency split systems replace older, inefficient units or resistive heaters. Particularly relevant for South East Melbourne homes still using gas ducted heating or old window units. Goldworks Electrical supplies and installs eligible split systems as part of this program — see our single head split system installations in Seaford for an example of the work involved.
- Heat pump hot water systems — Replace electric resistance or gas storage hot water systems with a heat pump unit that uses up to 70–75% less energy to deliver the same volume of hot water. One of the highest-value upgrades available under the scheme.
- LED lighting upgrades — Replace halogen and fluorescent fittings with LED equivalents. Suitable for both residential and commercial properties. Typical savings of $100–$200 per year for an average home switching from halogen downlights throughout.
- Draught sealing — Sealing gaps around doors, windows, exhaust fans and floorboards reduces heating and cooling loads. Low-cost upgrade with immediate comfort benefits.
- Ceiling and wall insulation — Approved insulation upgrades reduce the energy needed to heat and cool the home year-round. Particularly effective in older Melbourne properties with no existing ceiling insulation.
- Pool pumps — Variable-speed pool pumps replace older single-speed models, cutting pool running costs substantially — typically $300–$500 per year for a standard residential pool.
- Space heating upgrades — Replacing old gas space heaters or resistive electric heaters with high-efficiency reverse-cycle systems qualifies under this category.
Not every upgrade will be available at zero cost — the subsidy level depends on the product, your location, and current VEEC prices. We’ll confirm exactly what applies to your property before any work is booked.
Am I Eligible for the VEU
Homeowners
Owner-occupiers of residential properties across Victoria are eligible. There are no income thresholds for most upgrades — the subsidy is available regardless of household income. The property must be an existing dwelling (not a new build for most activities). You’ll need to be the property owner or have the owner’s written authorisation.
Renters and Tenants
Renters can access VEU upgrades, but the landlord’s written permission is required before any installation takes place. In practice, this works well when a property manager coordinates directly with the installer — we handle this regularly for rental properties across Melbourne’s South East. The upgrade stays with the property, so landlords benefit from improved asset value and reduced maintenance calls related to ageing appliances.
Strata and Apartment Owners
Strata properties are eligible for individual dwelling upgrades where the work falls within the lot (for example, a split system serving a single apartment). Common-area upgrades such as shared lighting or common-area heating may require body corporate approval. For strata managers needing a documented, compliant installation with proper certification, we provide full paperwork on completion — the same day the job is done, not weeks later.
Businesses and Commercial
Small and medium businesses are eligible for a range of VEU activities including LED lighting, reverse-cycle air conditioning, and space heating upgrades. The subsidy mechanism is the same as for residential properties. We carry out commercial electrical work across Melbourne and can assess which activities apply to your premises as part of the quoting process.
How Much Can I Save?
Heat Pump Hot Water
This is typically the highest-value VEU upgrade. A standard electric resistance hot water system running on a flat tariff costs around $700–$900 per year to operate. A heat pump unit of equivalent capacity typically costs $150–$250 per year to run — a saving of $500–$700 annually. The upfront cost after the VEU subsidy is applied is often under $1,000 installed, meaning payback periods of two years or less are achievable.
Reverse-Cycle Air Conditioning
Replacing an old single-speed split system or a gas ducted heater with a high-efficiency reverse-cycle unit can cut heating and cooling costs by 30–50% depending on the existing system. For a home previously relying on a gas ducted system, the savings are often higher once the shift away from gas pricing is factored in. We supply and install eligible split systems across Melbourne’s South East — our multi-head split system installations in Langwarrin give a practical sense of the scope involved.
LED Lighting
A home with 20 halogen downlights running an average of five hours per day will spend around $150–$200 per year just on those fittings. LED replacements cut that figure by roughly 80%, with the VEU subsidy often reducing or eliminating the installation cost entirely.
Pool Pumps
A single-speed pool pump running 8 hours per day during the summer months can cost $600–$800 per year to operate. Variable-speed replacements eligible under the VEU program typically reduce that to under $200 per year. For Melbourne households with a pool, this is one of the fastest payback upgrades available.
How the VEU Process Works
The process is straightforward and we handle the paperwork on your behalf:
Step 1 — Check eligibility: Contact us and we’ll confirm which upgrades apply to your property type, existing equipment, and location. This takes minutes over the phone or via our website.
Step 2 — Choose your upgrade: We’ll explain the available options, the subsidy that applies to each, and any out-of-pocket cost. You choose what suits your property and budget — no pressure.
Step 3 — Book an accredited installation: We schedule the installation at a time that suits you. For rental properties and strata, we coordinate directly with property managers to minimise disruption to tenants. Most installations are completed in a single visit.
Step 4 — Receive your documentation: On completion, you receive all relevant compliance certificates and installation documentation. For landlords and strata managers, this paperwork is provided the same day — no chasing required.
Why Use an Accredited VEU Provider?
Only installations carried out by ESC-accredited providers generate valid VEECs, which means only accredited providers can pass the subsidy on to you. Using a non-accredited installer means paying full price and receiving no rebate. Beyond the financial aspect, accredited providers are bound by ESC compliance requirements covering product eligibility, installation standards, and consumer disclosure obligations — giving you a clear layer of consumer protection that doesn’t exist outside the scheme.
Goldworks Electrical has over 10 years of experience carrying out electrical and air conditioning installations across Melbourne. We’re a licensed electrical contractor, and all our work is completed to current Australian Standards. For a rental or strata manager, that means a reliable, documented job with the compliance paperwork you need — not a callback weeks later to chase certificates. You can read more about our broader service range on the Goldworks Electrical homepage.
Out-of-Pocket Costs — What to Expect
Whether there’s a gap payment depends on the upgrade type, the specific product selected, and current VEEC market prices. For some activities — particularly LED lighting and certain heat pump upgrades — the subsidy fully covers a standard installation with no out-of-pocket cost to the property owner. For others, such as higher-capacity reverse-cycle systems or premium heat pump models, there may be a co-payment. We provide a clear, itemised quote that shows the full cost, the subsidy applied, and any amount payable before you commit to anything. There are no hidden fees and no obligation after the quote.
Why Choose Goldworks Electrical
Why South East Melbourne Chooses Goldworks Electrical for VEU Upgrades
We’re a local electrical contracting business — not a rebate aggregator or a door-to-door sales operation. When you contact us, you’re speaking directly with the team that will carry out the work. For property managers handling multiple rentals across suburbs like Carrum Downs, Langwarrin, Seaford, and Sandhurst, that means a single point of contact who knows your portfolio and gets the job done with minimal back-and-forth. We also assist with ducted air conditioning in Carrum Downs and surrounding suburbs, so if a property needs more than a rebate-funded split system, we can scope that work at the same time.
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Got Questions?
Frequently Asked Questions
How do I know if my switchboard needs upgrading?
Yes. Renters can access VEU upgrades provided the landlord gives written consent before installation. The process is straightforward — we can provide a simple consent template for landlords who aren’t familiar with the program. The upgrade remains with the property, which benefits the landlord through improved energy ratings and reduced wear on older appliances.
How long does a switchboard upgrade take?
Most single-upgrade installations — a split system, a heat pump hot water unit, or an LED lighting job — are completed in a single visit of two to five hours. We work efficiently and aim to leave the property fully operational the same day. For strata properties or rentals with tenants in residence, we’ll confirm the schedule in advance so there are no surprises.
Will my power be off during the upgrade?
It depends on the upgrade. Heat pump hot water and air conditioning installations require a brief power interruption during connection, but this is typically under an hour and we plan it to minimise any impact. LED lighting replacements can often be staged room by room with minimal disruption. We’ll walk you through exactly what to expect before we start.
Do I need a switchboard upgrade before installing a new air conditioner or EV charger?
Strata properties are eligible for upgrades within individual lots — a split system for one apartment, for example. Common area upgrades may require body corporate approval. We regularly work with strata managers and can provide all compliance documentation on the day of installation, which satisfies body corporate record-keeping requirements without additional follow-up.
Is a switchboard upgrade required by law?
Not always. Many upgrades — particularly LED lighting and some heat pump hot water installations — are available at no cost to eligible households. Others involve a co-payment depending on the product specification and current VEEC prices. We provide a clear quote showing the full cost and subsidy before any work is confirmed, so you know exactly where you stand.
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Yes. All VEU installations require the accredited provider to complete and retain compliance documentation, and you receive a copy on completion. For rental properties, this documentation demonstrates to Consumer Affairs Victoria that the upgrade was carried out by a licensed, accredited installer — important for landlords managing compliance obligations.
Ready to Check Your
Call us or send an enquiry and we’ll confirm which VEU upgrades apply to your property, what the subsidy covers, and when we can get the job done. No sales pressure — just straightforward answers and a clear quote.
Get a Free VEU Eligibility Check and Quote
Whether you’re a homeowner looking to cut energy bills, a landlord wanting to meet your compliance obligations, or a property manager coordinating upgrades across multiple tenancies, get in touch with Goldworks Electrical and we’ll assess your eligibility, explain the subsidies that apply, and provide a clear upfront quote. Most jobs are completed in a single visit with same-day documentation — so you’re not left waiting to confirm the work is done and compliant.
