A Guide to Victoria's Energy Efficiency and Renewable Energy Programs: Empowering Your Home for a Sustainable Future

As the world shifts towards cleaner energy and greater sustainability, Victoria is leading the charge with a suite of programs designed to make energy efficiency and renewable energy more accessible to everyone. If you’ve ever wondered how programs like the Victorian Energy Upgrades (VEU), Solar Victoria, and Small-scale Technology Certificates (STCs) work, this guide is for you. We’ll break down each program, explain how they’re interconnected, and discuss the exciting future of energy rebates, including the potential inclusion of new technologies like battery storage and induction cooktops.

The Essential Services Commission and Victorian Energy Upgrades (VEU)

The Victorian Energy Upgrades (VEU) program, regulated by the Essential Services Commission (ESC), is at the heart of Victoria’s effort to reduce greenhouse gas emissions and promote energy efficiency. The VEU provides rebates and discounts for a variety of energy-efficient products, ranging from heating and cooling systems to draft-proofing. But how exactly does this program work?

When you install an eligible product under the VEU, you generate Victorian Energy Efficiency Certificates (VEECs). Each VEEC represents one tonne of greenhouse gas emissions avoided. Accredited providers, who are authorized by the ESC, facilitate these installations and create VEECs, which they can then sell to energy retailers. These retailers are required to purchase and surrender a certain number of VEECs annually to meet the state’s emissions reduction targets. This trading system effectively funds the rebates and discounts you receive, making energy-efficient upgrades more affordable.

The VEU program is constantly evolving to include new technologies. While induction cooktops are not yet part of the approved product list, there is optimism that they will be included before the end of the year. This expansion would further support Victoria’s push towards electrification, reducing reliance on gas and making homes more energy-efficient.

Solar Victoria

While the VEU focuses on a broad range of energy-efficient products, Solar Victoria zeroes in on promoting renewable energy, particularly solar power. Solar Victoria offers rebates and incentives for solar panel installations, batteries (loan), and hot water systems. These rebates significantly reduce the upfront costs, making renewable energy more accessible to Victorians.

Small-scale Renewable Energy Scheme (SRES)

Overseen by the Clean Energy Regulator (CER). Under this scheme, households that install eligible renewable energy systems generate Small-scale Technology Certificates (STCs). These certificates can be sold to energy companies, who need them to meet their renewable energy obligations under the federal Renewable Energy Target (RET).

STCs are different from VEECs in that they are part of a national program, whereas VEECs are specific to Victoria. The revenue from selling STCs helps offset the cost of your solar installation, while Solar Victoria’s rebates provide additional financial support at the state level. This dual approach makes it easier and more affordable for Victorians to go green.

Understanding the Approved Product List and Accredited Providers in the Victorian Energy Upgrades (VEU) Program

The Victorian Energy Upgrades (VEU) program relies heavily on the use of high-quality, energy-efficient products to achieve its emissions reduction goals. To ensure that only the best products are eligible for rebates, the program maintains an Approved Product List. This list includes a wide range of items, from energy-efficient lighting and heating systems to hot water systems and weather sealing products. For a product to be included on this list, it must undergo rigorous testing and certification to meet specific energy performance standards. This testing is conducted by accredited laboratories, and the results must demonstrate that the product will deliver genuine energy savings and greenhouse gas reductions. Additionally, products must come with robust warranties to protect consumers, ensuring that the products will perform as expected over time. The VEU program only approves products that meet these stringent criteria, providing confidence to consumers that the items they purchase will contribute to their energy efficiency goals.

In tandem with the approved product list, the VEU program also relies on a network of accredited providers to deliver these energy-efficient upgrades to consumers. These providers must go through a detailed accreditation process overseen by the Essential Services Commission (ESC). The process includes submitting detailed business plans, demonstrating compliance with all relevant regulations, and showing that they have the necessary skills and expertise to deliver the upgrades effectively. Once accredited, these providers are responsible for ensuring that all installations meet the required standards and that the VEECs generated are accurately calculated and reported. Accredited providers are also subject to ongoing audits and compliance checks to ensure they continue to meet the program’s high standards. This rigorous accreditation process is crucial for maintaining the integrity of the VEU program and ensuring that the energy savings delivered are both real and sustainable.

By focusing on quality products and trusted providers, the VEU program not only supports the state’s emissions reduction targets but also ensures that consumers receive reliable and effective energy-saving solutions.

For a list of accredited providers click here

For the full list of approved products  click here

Am I Eligible? Understanding Eligibility for Energy Rebates

Eligibility for energy rebates in Victoria depends on the specific program you're applying for, as each has its own criteria. Here's a breakdown of the main programs: 

1. Small-scale Technology Certificates (STCs)

For STCs its straightforward: all homeowners who install eligible renewable energy systems can generate and sell STCs, regardless of income or property value. The revenue from selling STCs helps reduce the upfront cost of installation, making it easier for households across Australia to invest in renewable energy.

STCs are generated when installing:

• Solar PV
• Wind and hydro
• Solar water heaters
• Air source heat pumps (hot water or RCAC).

The number of certificates depends on the:

• geographical location
• installation date
• amount of electricity generated or displaced in MWh
• creation over one or 5 years, or a single maximum deeming period.

2. Victorian Energy Efficiency Certificates (VEECs)

Eligibility for VEECs is not means-tested. Any Victorian household, rental property, or business that installs eligible energy-efficient products through an accredited provider can generate VEECs and receive rebates or discounts on the installation cost. There are no income or property value limits for participation in the VEU program.

VEECs are generated when installing:

• Home Energy Rating Assessments
• Clothes dryers
• Cold rooms
• Commercial and industrial lighting
• Heating and cooling systems
• Hot water systems
• In-home display
• Induction cooktops (By end of 2024)
• Pre-rinse spray valves
• Shower heads
• Weather sealing products
• Window glazing

3. Solar Victoria

The Solar Victoria program offers rebates and loans specifically for solar systems, solar batteries (loan only), and hot water system installations. Unlike STCs and VEECs, Solar Victoria is means-tested. Eligibility criteria include:

• The property where the system is installed must have a value of less than $3 million.
• The combined household taxable income must be less than $210,000 per year, based on your most recent tax return.

These means-testing criteria help ensure that the rebates are directed toward households that can benefit most from financial assistance, making solar energy more accessible to middle- and lower-income households.

To maximize your benefits, it’s worth exploring how these programs can work together. For example, if you install solar panels, you could claim both STCs to reduce the cost of installation and a Solar Victoria rebate if you meet the eligibility criteria, while also benefiting from VEECs for any additional energy-efficient upgrades you make.

Rebates for New Builds vs. Existing Equipment Upgrades: What You Need to Know

A key point to understand about Victoria's energy efficiency programs is how they apply to new builds versus existing equipment upgrades. Most of the rebates offered through the Victorian Energy Upgrades (VEU) and Solar Victoria programs are focused on upgrading existing equipment in homes that are already built. This means that homeowners and renters can access incentives to replace outdated heating and cooling systems, hot water systems, draft-proofing, and even window glazing upgrades. Each one of these services have their own eligibility criteria which can be found by clicking here.

For new builds, these rebates are less commonly available, as energy efficiency standards are generally factored into the design and construction process through programs like the National House Energy Rating Scheme (NatHERS). However, households moving into new builds can still benefit from programs such as Solar Victoria, where incentives are available for installing solar panels, hot water systems, and batteries, provided the property and household meet certain eligibility requirements from Solar Victoria.

If you're planning to build a new home, it’s worth considering energy-efficient designs and materials from the outset. While the Victorian Energy Upgrades (VEU) program mainly focuses on existing properties, you can explore opportunities like Small-scale Technology Certificates (STCs) for renewable energy systems, which are applicable to both new builds and existing homes.

Funding and Future Directions: What’s Next for Energy Rebates?

The funding for these programs comes from a mix of state and federal sources. Solar Victoria’s rebates, for example, are funded by the Victorian government as part of its broader strategy to reduce emissions and support renewable energy adoption across the state. This funding ensures that households can access substantial rebates, reducing the financial barrier to installing solar systems and other products.

The VEU program is funded through the purchase of VEECs by energy retailers. These retailers pass on the cost of purchasing VEECs to consumers through their energy bills, but the savings from using energy-efficient products generally outweigh the costs, resulting in lower overall energy expenses for households.

Looking ahead, there’s growing anticipation around expanding these rebate programs to include new technologies like battery storage and induction cooktops. Batteries, in particular, are crucial for maximizing the benefits of solar power, as they allow households to store excess energy generated during the day for use at night. The inclusion of these technologies would represent a significant step forward in Victoria’s journey towards full electrification and a sustainable future.

The Path Forward: Electrifying Victoria’s Homes

Victoria’s energy programs are more than just financial incentives, they are a key part of the state’s strategy to transition to a low-carbon economy. By making energy efficiency and renewable energy more accessible, these programs empower households to reduce their environmental impact while also saving money on energy bills.

The inclusion of battery storage, induction cooktops, and other cutting-edge technologies would not only enhance the efficiency of Victoria’s homes but also accelerate the state’s progress towards its emissions reduction targets.

For now, Victorians can take advantage of the existing rebates and incentives to make their homes more energy-efficient and sustainable. With ongoing developments in the energy sector, the future looks bright for those looking to embrace cleaner, more efficient energy solutions.

Whether you’re considering installing solar panels, upgrading your heating and cooling systems, or waiting for the latest energy-saving technologies to be approved, now is the perfect time to explore your options. Victoria’s energy programs are designed to help you make the most of these opportunities, supporting a greener, more sustainable future for all.

If you're looking to take the first step toward making your home more energy-efficient and want to learn more about the various rebates and incentives available, a Residential Efficiency Scorecard Assessment is the perfect starting point. At Australian Energy Assessments, we offer these assessments for free across the state, providing you with a detailed understanding of your home's energy performance and practical recommendations on how to improve it. Whether you're interested in upgrading to energy-efficient appliances, exploring solar options, or electrifying your home, a Scorecard Assessment will guide you on the most impactful changes you can make. Start your energy efficiency journey today and take advantage of the many programs designed to help you save money while contributing to a more sustainable future. 

Contact us to schedule your free assessment and discover how easy it can be to make your home greener and more efficient.

For up to date pricing on certificate prices click here