Find out about recent Victorian Energy Upgrades Program changes and what's coming up.
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The Victorian Energy Upgrade (VEU) Program is the state’s largest energy efficiency program and a key measure in Victoria’s Climate Change Strategy.
Encouraging investment and employment in the energy efficiency sector is an objective of the program – certainty in the program is a key to achieving this.
Please find the following information included within this statement:
monthly publication of information in relation to the Victorian Energy Efficiency Certificate (VEEC) market
quarterly publication of information on the pipeline of new and revised activities for the VEU program.
Market update - October 2024
This market information will be updated every month. Last update 7 November 2024.
Participation numbers
Participation numbers as of 1 October 2024 (only available for full months):
66 buyers (a decrease of 12% from 6 months ago).
109 sellers (an increase of 8% from 6 months ago).
96 active accredited providers (an increase of 16% from 6 months ago).
VEEC supply and spot price
Graph showing historic VEEC price between 2019 and 2024, mapped against the excess supply of VEECs against VEU targets for each year.
This graph previously showed figures going back to 2009, but from has been updated to reflect a more current time period of 2019–2024
if the line showing excess VEEC supply were at zero, the program would be perfectly on schedule to meet the targets. As the graph shows, the VEU program is well ahead of its targets
a small percentage of VEECs over the years do not go towards targets, due to voluntary surrenders, withdrawals, etc. This has been adjusted for at the 2018–2022 surrender dates.
VEEC registration by activity type
Graph showing number of registered VEECs between January 2021 and August 2024
VEEC registrations have seen a steady increase following a dip in December 2023.
Two spikes in VEEC registrations were observed in January and July 2024. These are attributed to an uptake across all activities with the exception of residential lighting, which was phased out of the VEU program in 2023.
VEEC registrations under the space heating activity have increased overall in recent months, while refrigerated cabinets, in home displays and weather sealing have seen a decrease in VEEC registration.
Other lighting has seen a spike since September 2024, while residential water heating and commercial and industrial water heating has been relatively steady over recent months.
New and revised activities – November 2024
This information will be updated on a quarterly basis. Last update 7 November 2024.
The Department of Energy, Environment and Climate Action is working on a range of new and revised activities for the VEU program, which will increase the supply of certificates. Information on the new and revised activity work program is provided below.
Please note: the Department will be delaying the reintroduction of incentives for plug-in refrigerated cabinet activities until further notice. Timelines will be confirmed at a later date.
These timeframes are indicative only and are subject to change. Stakeholders are advised not to make any commercial decisions based on future timeframes.
Completed
Refrigerated cabinets – response to consultation is released.
Telemarketing – Regulatory Impact Statement and response to consultation released.
Project Based Activities – public consultation commenced.
Water heating (residential and commercial, industrial) and Space Heating/Cooling review – public consultation commenced.
Induction cooktops – public consultation commenced.
Space heating and cooling – expansion of reverse cycle air conditioner product eligibility and review of incentives for businesses.
Cold rooms – activity updates.
Strategic review – review of the VEU program commences.
Induction Cooktops – new activity commences.
Co-payments and warranty requirements – release of response to consultation.
To do
Household appliances – updates to activities.
2026 – 2030 Target Setting – release of consultation in the second half of 2024.
Project Based activities – updates to activities.
Energy Management Information Systems – release of consultation.
Large Energy User Exemption Framework – release of consultation.
To do
Electric Motors – update to activity.
Water Heating and Space Heating/Cooling quality review – release of public consultation.
The Department regularly reviews the range of energy efficiency upgrades available to receive incentives, ensuring they continue to reduce emissions and save consumers money.
A typical process for introducing or amending a VEU activity is outlined below. Please note that this is a guide only and the time involved and steps may vary considerably depending on the scale of the work.
Please note: an activity is not an eligible activity under the Victorian Energy Upgrades program until final regulations and specifications are in effect, and these have been communicated publicly.
Stakeholders are strongly advised not to make any decisions related to new or revised activities under the VEU program until final Regulations and Specifications have been approved and published.
The Department does not make any representation that any proposed changes set out will (i) take effect, (ii) will take effect on or by a particular date, or (iii) will take effect in the form proposed.
Regulations and Specifications approval process flowchart
Stage 1
Activity development and research
Stage 2
Preparation of draft Regulations and Specifications
Stage 3
Public consultation
Stage 4
Response to consultation, finalise draft Regulations and Specifications
Stage 5
Legal review
Stage 6
Minister, Secretary and Executive Council approval
