The Victorian Energy Upgrades (VEU) initiative now includes a special offer for air-conditioning upgrades in Victoria. This means households and businesses have a real opportunity to replace old, inefficient cooling/heating systems with newer, more energy-efficient models — and receive a significant upfront discount.
What is this Air-Conditioning Discount?
It’s not a traditional rebate. Instead of submitting an application and waiting for a refund, the discount is applied immediately. Qualifying properties receive a reduced full-price quote for parts + installation of the new air-conditioning system. The primary goals are:
- Lower household (and statewide) energy usage
- Reduce energy bills for property owners
- Ensure the new system performs better, longer and more reliably
Who’s Eligible?
To qualify for this program in Victoria you’ll generally need to meet these conditions:
- Your property is more than two years old
- It is located in Victoria (residential homes or businesses)
- You’re replacing an existing inefficient air-conditioning system (or in some cases installing a new one)
- You haven’t already claimed this particular upgrade discount in the last two years
Can Businesses Participate?
Yes. If you operate a business in Victoria and you meet the eligibility criteria above, you can upgrade your air-conditioning system under the same discount program.
How Do You Get the Discount?
The good news: you don’t have to fill out lengthy forms or wait for rebate checks. Instead, when you get a quote from an accredited provider, the discounted price is built in — so you simply pay the reduced rate at installation.
How Much Will You Save?
The exact discount varies based on:
- The market value of the VEECs (Victorian Energy Efficiency Certificates) generated
- Any STCs (Small-scale Technology Certificates) applied when replacing the old system
- The installer and their pricing structure
As a rough benchmark, single split systems under this program can start from around $1,490 installed. But there is no guarantee of “free” installation — if you see that advertised, it’s wise to check the fine print.
Self-Installation? Unfortunately, No.
To be eligible, the system must be supplied and installed by an accredited partner of the VEU program. DIY installations do not qualify under this scheme.
Which Brands/Systems Are Eligible?
Only certain approved models are eligible under the VEU program. Providers often carry brands like ERS Tech, Midea, and Carrier, and may source other approved brands on request. Specifying a non-listed brand may delay the process or increase cost.
Why Are Some Brands Not Available?
Because each product must be pre-approved under the scheme, including lab testing. If a brand isn’t on the approved list, it will take time and effort to get it included — unless it already is. So working with a provider that stocks approved models helps streamline the upgrade.
Product Approval Requirements
Approval under the VEU means the product must meet strict lab-tested efficiency standards, longevity and environmental criteria. Manufacturers apply to the Essential Services Commission Victoria (ESC) for accreditation; only then can the system qualify for the program.
Is the Discount Available for Ducted Systems?
This program typically covers individual standalone units (split systems) rather than full-home ducted systems. For ducted systems, different rules or incentives may apply — check with your installer.
How Much Will Your Bills Drop?
While it depends on your specific system and usage patterns:
- Upgrading from a gas ducted system could deliver annual savings of $2,700 or more
- For non-ducted upgrades, savings of around $1,490-$1,790 per year are realistic
How Long Will the Program Run?
There’s no fixed public end-date. The continuation depends on the program’s uptake, budget and policy direction. If you’re considering an upgrade, it’s best to act sooner rather than later.
Can This Be Combined With Other Victoria Government Energy Upgrades?
Yes. You may be able to bundle this air-conditioning discount with other efficiency upgrades — such as a hot water heat pump, LED lighting retrofit, insulation improvements or door/window sealing — to further reduce your energy usage.
Final Word
If you’re in Victoria and your air-conditioning system is old or inefficient, now’s a great time to upgrade through the VEU-backed discount scheme. You’ll benefit from a newer system, lower bills and a more comfortable environment — without the hassle of rebate applications. Contact an accredited installer today to get a quote and start saving.