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The Victorian Energy Upgrades program helps Victorians cut power bills and reduce greenhouse gas emissions by giving households and businesses access to discounted energy-efficient products and services.

The program works by setting a state-wide target for energy savings that results in a range of energy-efficient products and services being made available to homes and businesses at a discount.

Accredited providers that deliver these financial incentives can generate Victorian Energy Efficiency Certificates (VEECs). The number of certificates generated is based on the greenhouse gas savings associated with the product or service. The incentive or discount received by households and businesses varies depending on the market activity and certificate price.

An approved provider must professionally install products. Incentives for the purchase of some appliances may be available at point of sale at participating retailers. Consumers should check with an accredited provider before purchase.

The Victorian Energy Upgrades program is a market-based program. Since it is a free market, the value of certificates can fluctuate due to consumer supply and demand rates, just like any other type of market. Consequently, the availability of products and services can also vary over time.

The Victorian Energy Upgrades program (previously the ‘VEET scheme’) is established under the Victorian Energy Efficiency Target Act 2007, the Victorian Energy Efficiency Target Regulations 2008 and the Victorian Energy Efficiency Target (Project-Based Activities) Regulations 2017.

This legislative framework places a legal requirement on energy retailer companies to meet an annual greenhouse gas emissions reduction target by surrendering Victorian Energy Efficiency Certificates.

The program is administered by the Essential Services Commission (ESC),the independent regulator of the retail energy industry in Victoria. Their role is to oversee compliance and performance reporting by energy businesses and accredit businesses and the products and services eligible under the program. More information about the administration of the program can be found on the ESC website.

VEU supports households and businesses to install energy efficient equipment or switch to appliances that create less emissions. Since the program was established in 2009, it has reduced Victoria’s greenhouse gas emissions by over 60 million tonnes.

Under new emission reduction targets announced for the program, VEU will lock in 28 million tonnes of greenhouse gas emissions savings for Victoria between 2022 and 2025 – equivalent to taking more than 8.5 million cards off the road for a year.

The program expansion will include new incentives to support consumers to replace gas appliances with efficient electric alternatives, maximise self-consumption of their rooftop solar energy, and install smart appliances including home energy management systems.

The program will also provide subsidies targeted to businesses, including replacing inefficient gas boilers with efficient electric alternatives.

Work will be undertaken to increase access to the program by increasing incentives and options for households and businesses that can particularly benefit from energy efficiency measures, such as low-income households and small businesses affected by coronavirus (COVID-19).

The average household currently saves $110 per year by participating in VEU. These savings are expected to increase to between $120 and $1,100 a year under new under new emission reduction targets for the program for 2022-25.

The average business currently saves $3,700 per year by participating in VEU. These savings are estimated to increase under new emission reduction targets for the program for 2022-25 ­– businesses will save between $500 and $74,000 a year depending on the size of the business.

We have provided clear directions to all of our electricians, plumbers and contractors, that they must adher to our COVIDSafe plan at all times.