VEU Specifications update and 2025 workplan
17 December 2024
As we approach the end of the year, the Department of Energy, Environment and Climate Action (DEECA) would like to share some exciting updates and reflect upon the achievements of the Victorian Energy Upgrades program. We are excited to highlight some key milestones, including:
- updating the VEU Specifications for existing appliance activities
- sharing the 2025 workplan.
Specifications updates to existing appliance activities
DEECA has published an updated version of the Victorian Energy Upgrades Specifications Version 19.0.
The Specifications revise the existing appliance activities (High efficiency refrigerators and freezers, televisions and clothes dryers) to ensure that they remain up to date with relevant standards and market trends, and to ensure they remain functional and simple for consumers to understand.
The greenhouse gas (GHG) reduction calculations for all activities have been updated and simplified, with all eligible products for each activity generating one VEEC.
Part 22 – High efficiency refrigerators and freezers activity
The specifications revise the high efficiency refrigerators and freezers activity to simplify the activity and update references to relevant standards.
The specifications will increase the minimum energy efficiency star ratings for refrigerators and freezers, as determined in accordance with the most up to date Commonwealth standards.
- For refrigerators, the minimum star rating will increase from 2.5 or 3.5 stars to 5.5 stars.
- For freezers, the minimum star rating will increase from 3.0 or 3.5 to 4 stars.
- The minimum total storage volume of all products has increased from 100 litres to 250 litres, with a maximum volume of 700L.
Part 24 – High efficiency televisions
The specifications revise the high efficiency televisions activity to simplify the activity and adjust requirements in response to changing consumer preferences. The Specifications:
- set the minimum energy efficiency star rating for televisions at 6 stars
- introduce a new minimum screen size of 4000cm2, equivalent to 38 inches diagonally
- remove the requirement for televisions to have a maximum CEC on the energy rating label.
Part 25 – High efficiency (low greenhouse intensity) clothes dryers
The Specifications revise the high efficiency (low GHG intensity) clothes dryer activity (Part 25) to simplify and update the activity. The Specifications:
- retain the minimum energy efficiency star ratings for clothes dryers at 7 stars
- introduce a new minimum load capacity of 5kg.
Information on eligible upgrade scenarios and GHG abatement calculations can be found in V19.0 of the specifications.
What’s next for VEU?
It’s been a big year for VEU, with almost $440 million in VEU incentives provided to households and businesses in 2024.
So far in 2024, more than 355,000 households and 16,000 businesses have received discounted energy efficient products and services.
Key highlights
- We have launched several new and revised activities, including introducing an induction cooktop pilot activity, new incentives and expanded product eligibility for space heating and cooling and water heating upgrades.
- We are seeing strong growth in the uptake of electrification activities. Since the VEU program introduced new electrification activities in mid-2023, more than 24,000 Victorians have switched to efficient electric heating and cooling and more than 34,000 Victorians have upgraded from a gas water heater to a heat pump water heater.
- 9 in 10 participants are satisfied with the VEU program and the product installed after participating in VEU (according to market research commissioned by DEECA in 2024).
- We’ve engaged with stakeholders and the community through several consultations, webinars and attendance at events, including the All-Energy conference.
- We’ve strengthened consumer protections under the program, including through a ban on telemarketing and doorknocking. More is yet to come, with the introduction of minimum copayment and warranty requirements for some activities taking effect on 1 February 2025.
In October 2024, the Victorian Government announced several proposed legislative changes to the VEU program, including an extension to the end date of the program to 2045. The VEU program is Victoria’s key energy efficiency program, with a strategic review underway to further strengthen the program.
The strategic review will ensure the VEU program is fit for the future and can fulfill its potential to support government priorities on electrification, energy affordability, emissions reduction, and reliability.
To inform the review outcomes, DEECA has undertaken comprehensive stakeholder consultation and public engagement in the last six months, meeting with over 50 industry sector organisations, and receiving over 260 responses to our survey focused on the experiences and priorities for the review.
Further public consultation on the review will be undertaken in early 2025. DEECA would like to thank everyone that has participated in the consultation to date, and we look forward to more discussions in the new year.
Looking ahead, we are excited to work on regulatory reforms and a range of new and revised activities for the VEU program, which will increase the supply of certificates.
The workplan for 2025 is included below:
Learn more about the workplan on Industry market update and work program.
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Page last updated: 18/12/24