Key points
- Victorian Energy Upgrades (VEU) gives point-of-sale discounts with no income test, and the program now runs to 2045.
- It covers heat pump hot water, reverse-cycle air conditioning, induction cooktops and, from 1 October 2026, ceiling insulation for all eligible homes.
- Ceiling insulation discounts are up to $1,500 in Melbourne and $2,100 in regional Victoria.
- VEU does not cover home solar panels or batteries. Those are funded through Solar Victoria and the federal STC scheme.
Victorian Energy Upgrades is one of the longest-running energy efficiency programs in Australia, and in 2026 it got bigger. Here’s what the program covers, the latest changes, and how it fits with solar and battery incentives.
What is Victorian Energy Upgrades?
VEU is a state program that gives households and businesses discounts on approved energy-saving products. Accredited providers create Victorian energy efficiency certificates (VEECs) for each upgrade and pass the value on to you as a discount on the price. Unlike Solar Victoria’s rebates, there’s no income test, so any eligible household can use it.
In May 2025 the Victorian Parliament extended the program from 2030 to 2045, so these discounts will be around for the long term.
What VEU covers for homes in 2026
| Upgrade | Notes |
|---|---|
| Heat pump hot water | Can be combined with the Solar Victoria hot water rebate |
| Reverse-cycle air conditioning | Including replacing gas ducted heating. New limits apply from 30 September 2026. |
| Induction cooktops | Replacing gas or older electric cooktops |
| Ceiling insulation | Open to all eligible homes from 1 October 2026 |
| Other efficiency products | Such as draught-proofing and efficient showerheads, through accredited providers |
Discount amounts depend on the product, your location and the current VEEC market price, so get quotes from accredited providers.
New in 2026: ceiling insulation discounts
From 1 October 2026, all eligible Victorian homes can get discounted ceiling insulation through VEU. Public and community housing has had access since April 2026. The discount is up to $1,500 in metropolitan Melbourne and up to $2,100 in regional Victoria, roughly half the cost of a typical $3,000 job. The government estimates insulation can save more than $400 a year on heating and cooling.
Changes to air conditioning discounts
From 30 September 2026, VEU discounts for multi-split air conditioning systems are capped at 17 kW of capacity, and the minimum amount customers must pay for ducted and multi-split systems has risen to $3,000. The changes are designed to stop “free” installs and keep quality high.
What VEU doesn’t cover: solar and batteries
VEU doesn’t offer discounts for home solar panels or batteries. (It added a commercial and industrial solar activity in late 2025.) For homes:
- Solar panels: Solar Victoria’s Solar Homes rebate (up to $1,400) plus federal STCs. See our solar rebate guide.
- Batteries: the federal Cheaper Home Batteries Program, worth 6.8 STCs per kWh until 31 December 2026. See our battery rebate guide.
Putting it all together
The biggest savings come from combining upgrades. Solar panels make cheap daytime electricity, a heat pump and reverse-cycle air conditioning use it efficiently, insulation keeps the heat in, and a battery carries the surplus into the evening peak. With VEU, Solar Victoria and federal incentives stacked together, a full electrification upgrade costs a lot less than it did a few years ago.
Landlords take note: new rental minimum standards begin on 1 March 2027, and every required upgrade is VEU-eligible. Getting ahead of the deadline means better prices and less disruption for tenants.
Sources: Premier of Victoria – Cheaper insulation to bring down energy bills; ESC – VEU program updates; Energy Victoria – Victorian Energy Upgrades; HVAC&R News – Changes to heating and cooling incentives. Discount amounts vary; check with an accredited provider. Featured image: Alexarje / Wikimedia Commons, CC BY 4.0.
