The Victorian Energy Upgrade (VEU) program is a state government initiative. It aims to incentivise both installers and homeowners, landlords and businessess to upgrade to more energy-efficient products.
How does the VEU program work?
Launched in 2009, the VEU program rewards energy-efficient upgrades to houses and businesses. When an approved, energy-efficient product is installed, we’re able to issue a Victorian Energy Efficiency Certificate (VEEC).
Each VEEC represents one tonne of carbon that the upgrade stops from being emitted. Energy retailers are then obliged by law to purchase these, to offset their own carbon emissions.
How has the VEU program changed?
When it launched in 2009, very few energy-efficient upgrades were eligible to generate VEECs. For each activity that qualified, only a small range of products were approved – and many of these weren’t people’s first preference.
More recently though, the types of activity that qualify to generate VEECs has expanded. Even better, the range of approved products now includes a variety of household names, meaning there’s never been a better time to upgrade (and get paid to do it).
Heating and cooling is the flagship VEU activity until 2030.
There are VEEC rebates for a huge range of common split system installs.
Hot water pump rebates can attract both VEU reabtes and STC rebates.
Each ‘VEU friendly’ install creates VEU reabtes.
Often the more energy-saving the install, the more rebates that is created.
Homeowners get discounted installations, reduce future energy bills, cut-down on carbon emissions and help the environment.
Installers can use part of the rebate to get paid to engage with the programme, to win more work and create more jobs
How are VEECs calculated?
VEECs are created when a VEU-approved install is undertaken. The number of VEECs created depends on a range of things.
- The old/existing units that are decommissioned (the less efficient the old unit, the better)
- What new model(s) are installed (the more efficient the new unit, the better)
- Postcode of install: Regional vs. Metro, and whether it’s a cold, mild or hot climate
- Installers get an easy-to-use VEEC calculator to find the best VEU solution for their customers.
What determines the rebate amount for installers and property owners?
Funded by energy retailers
The rebate you receive is funded by energy retailers buying VEECs (as the government has stipulated that they must). However the price retailers buy them for varies each day, as it’s an open trading market.
Additional costs for installers
Installers generate some additional costs when participating in the VEU program. That’s because they need to:
– Identify and recommend only VEU-approved products
– Decommission or recycle old units using a VEU-approved method, via EPA-registered sites
– Handle the compliance work associated with the VEU application for the rebate
– Bear the legal responsibility for adhering to the program’s stringent requirements
Passing the rebate on to customers
Because of the above costs, it’s up to installers to decide how much of the rebate to pass on to their customers, which they usually do in the form of an up-front discount on the install. Most installers use our calculator tools to forecast the size of their rebate based on the products they’re installing, their clients’ postcode, the VEEC market, and other factors.
They then offer a discount to their clients that’s competitive and fair to both parties. Clients must agree to this when they approve the quotes they receive, and on the day of installation sign that they give permission for their installer to generate VEECs to get the rebate, and that they’re happy with the rebate portion offered to them.
Some important facts!
1. Our app makes it easy for installers to pull together everything they need for a successful rebate claim, including:
- Geo-tagged photos – a specific set that ‘tell the story’ of existing, then decommissioned and new units
- Extra info on VBA certificates
- CES certificates that must be uploaded
- Customer and installer signatures needed
- Plus much more!
2. Scrap Metal Requirements – Recycling certificates are needed from approved EPA providers to show
3. Every VEU install MUST have an ‘identifiable benefit’ to the customer to qualify, and we need to show proof of that
4. Model Numbers must EXACTLY match the VEU approved product model number – CHECK Approved Product List
5. Telemarketing is banned, and door knocking is banned from 1 August 2024.
6. Limits and criteria apply to installations – number of units, size of room, age of property – we will help you
7. VEEC calculation formula is complex and VEU can change it – important to always check our latest calculator
8. VEEC value fluctuates – check latest calculator and price hold guarantee to forecast your rebate correctly
9. VEEC payment from us is net to you after our fees have been deducted
10. We make payment direct to you each week – after your application is approved and submitted by us to the VEU
