Veu

Victorian Energy Upgrades

Formerly VEET Scheme

What is VEU (VEET) Program?

The Victorian Energy Upgrades (VEU) program is an initiative by the state government to improve energy efficiency. Under the state-wide energy savings targets, the project makes a wide range of energy-efficient equipment like LED lights, heat pumps, in-home displays, and solar panels available at reduced costs. Eligible households and businesses can apply for rebates and incentives to purchase these energy-efficient products to reduce their electricity bills and greenhouse gas emissions. 

The Victorian Energy Efficiency Target Act of 2007 (the Act) entered into force on January 1, 2009. The scheme is controlled under the Act, the Victorian Energy Efficiency Target Regulations of 2008, and the Victorian Energy Efficiency Target (Project-Based Activities) Regulations of 2017. In order to meet an annual greenhouse gas emission reduction goal, energy retailing firms in Victoria are mandated by law to submit Victorian Energy Efficiency Certificates.

Who Manages VEU?

The program is supervised and administered by the Essential Services Commission (ESC),  Victoria’s independent regulator of the retail energy market. The ESC is responsible for accrediting businesses and approving products that can be installed under the program, as well as monitoring the compliance and performance reporting of energy providers.

More details on how the program is run can be found on the ESC website:

https://www.esc.vic.gov.au/

How Does VEU Work?

Energy retailers in Victoria, Australia, get annual rebates from the state government for meeting annual greenhouse gas emission targets. They must buy Victorian Energy Efficiency Certificates (VEECs) equal to the amount of greenhouse savings in order to achieve these targets. Each certificate is equivalent to one tonne of CO2 that was kept out of the atmosphere. 

Accredited Providers (APs) are businesses who have met the requirements to participate in the Victorian Energy Upgrades program and are accredited to issue a VEEC for every energy-efficient upgrade a home or business undertakes. Because of the revenue generated through the sale of VEECs, accredited suppliers can offer incentives to their energy consumers in the form of VEECs, lowering the upfront cost of installing efficiency upgrades. 

The products must be expertly installed by an accredited provider. Some retailers may offer discounts or rebates on appliances purchased at the register. However, consumers should check with an accredited provider before making a major buying decision. 

The VEU program operates on a market-based model. The market value of certificates is subject to supply and demand conditions, just like any other market. This means that product and service availability may also change over time. The market activity and certificate value determine the incentive or discount that households and businesses receive.

Benefits

As a result of energy upgrades in Victoria, Victorians should expect cheaper energy costs and less emissions. The program is projected to save $3.8 billion on energy system expenses by 2025 and reduce electricity usage in Victoria by 7%.

Installing energy-saving appliances and equipment through Victoria’s Energy Upgrades program helps cut down on the state’s overall energy use and the requirement for brand-new power plants. This results in lower energy prices for everyone, which more than offsets the expense of the program.

While individuals who join the program will enjoy the greatest savings, even those who opt out will also see a noticeable reduction in their energy costs. On average, households can expect to save $150 per month over the next 10 years.

The latest in energy-efficient products won’t just save you money on your monthly power bill, but also on replacement, repairs, and other maintenance fees.

Victoria has set new targets for cutting down on greenhouse gas emissions, which will result in a reduction of greenhouse gas emissions by up to 28 million metric tonnes. That’s the same as removing over 8.5 million vehicles from the road for an entire year.

The program is constantly growing by adding new and improved activities and incentives for homes and businesses to make energy-efficient upgrades and reduce their energy costs. 

With the help of new incentives, Victorian families will be able to:

  • Substitute electric for gas appliances to save money and energy
  • Upgrade to smart home appliances
  • Have access to energy-efficiency rating tools for the home.

Check Your Eligibility

Your Melbourne or Victoria home or business must use inefficient lighting like halogen, incandescent, or CFL bulbs to be eligible to participate in the program. If you are a renter, you will need approval from your landlord before we may make any changes or upgrades to your property. Terms and conditions may apply. 

You can always reach out to us and check your eligibility.