18 May 2023

The Department of Energy, Environment and Climate Action (DEECA) has published the Victorian Energy Upgrades (VEU) Specifications Version 15.0.

These specifications include previously announced changes to space heating and cooling and water heating activities to support consumers to upgrade from gas to efficient electric appliances and introduce a new home energy rating assessment activity into the VEU program, commencing from 31 May 2023.

Space heating and cooling changes take effect from 31 May 2023

From 31 May 2023, a new space heating and cooling activity (Part 6) will come into effect. The activity provides incentives for the replacement of inefficient space heating and cooling appliances with efficient reverse-cycle air conditioners (RCAC). Information on minimum product performance requirements, eligible upgrade scenarios and greenhouse gas (GHG) abatement calculations can be found in V15.0 of the Specifications.

Please note that existing space heating upgrade scenarios (Part 5, Part 7, Part 9, Part 10 and Part 23) will be removed by 30 June 2023.

Water heating changes take effect from 31 May 2023

From 31 May 2023, the following changes will come into effect for water heating activities:

  • new activities will be introduced that incentivise the replacement of inefficient gas water heaters with efficient solar electric or heat pump water heaters
  • transitioning to the new AS/NZS 4234:2021 standard for product modelling and for the calculation of incentives
  • introducing transition calculations which allow for existing registrations to AS/NZS 4234:2008 to remain on the ESC product register and continue to create incentives until 30 June 2024
  • removing activities incentivising the upgrade of inefficient water heaters with gas water heaters by 30 June 2023
  • introducing a threshold on the global warming potential of refrigerants used in heat pump water heaters installed in the VEU program from 1 July 2024.

Information on minimum performance requirements, eligible upgrade scenarios and GHG abatement calculations can be found in V15.0 of the Specifications.

As part of the space heating and cooling and water heating activity changes, from 31 May 2023, accredited providers or installers undertaking these activities must provide consumers with a copy of the relevant VEU activity fact sheet. The department will publish a response to the sizing consultations held in March 2023 and final fact sheets on the VEU website before 31 May 2023.

More information on these consultations can be found on Engage Victoria:

Home Energy Rating Assessment activity introduced from 31 May 2023

From 31 May, the Home Energy Rating Assessment activity (Part 45) will come into effect. The activity provides up-front incentives for consumers that undertake a Residential Efficiency Scorecard assessment. Information on eligible scenarios and GHG abatement calculations can be found in V15.0 of the Specifications.

Page last updated: 07/07/23