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31 January 2023

The Department of Energy, Environment and Climate Action has published the Victorian Energy Upgrades (VEU) Specifications 2018 Version 14.0. These specifications include previously announced changes to lighting activities in the VEU program.

Lighting changes take effect from 1 February 2023

From 1 February 2023, the following changes will be made to lighting activities under the VEU program:

  • Removal of incentives for all energy efficient LED lighting upgrades under Part 21.
  • Changes to building based lighting activities under Part 34, including:
    • Removal of incentives for most building-based lighting activities under Part 34 including the removal of activities that incentivise LED lamp upgrades with more efficient LED lamps.
    • Linear and circular fluorescent lamp upgrades (T5, T8, T12) and non-integral ballast compact fluorescent lamp (CFL) luminaire upgrades will remain eligible under Part 34C.
    • All other eligible upgrade scenarios for 34C upgrades will be removed.
    • Reduced lifetimes for lamp replacements under scenario 34C from 5 years or a maximum of 5 years, to 4 years or a maximum of 4 years will reduce incentives associated with these activities.
  • Removal of incentives for mercury vapour lamp upgrades under Parts 27, 34 and 35.

The VEU program has been incredibly successful at encouraging the transformation of the lighting industry. Victorian consumers have greatly benefited from the highly efficient LED lighting products installed using incentives provided by the program. Lighting technology development, decreasing unit costs, consumer demands, economies of scale and market disruption have resulted in a vastly changed lighting market for Victoria.

The VEU program can only incentivise upgrade activities where the greenhouse gas (GHG) emissions reduction is considered additional, that is where the GHG reduction attributed to the activity would not have otherwise occurred. The reduction in incentives and removal of activities have been designed to address technological, market and regulatory changes that mean incentivising these types of lighting upgrades is becoming less additional.

To address the changing lighting market, the department consulted on changes to VEU lighting activities in 2019 and finalised its Response to Consultation in September 2020. These changes were delayed from their original commencement date to account for the disruptions that COVID-19 restrictions had on the residential lighting sector. Consistent with previous announcements, the department is implementing these changes from 1 February 2023.

Lighting activities that are removed from the VEU program will no longer be eligible for incentives. The Essential Services Commission will continue to closely monitor the behaviours of program participants and activity creations following the removal of lighting activities from the VEU program.

If you have any questions or feedback on the proposed changes to lighting activities under the VEU program, please contact the Energy Upgrades team.

Space heating and cooling activities

The Space Heating and Cooling Activities Response to Consultation  details the key decisions made in response to stakeholder feedback including:

  • introducing new activities that incentivise the replacement of inefficient gas space heating appliances with reverse cycle air conditioners (RCAC) by 31 May 2023
  • the removal of existing upgrade scenarios, including upgrades to gas heaters and evaporative coolers by 30 June 2023
  • allowing products registered to the Greenhouse and Energy Minimum Standards (Air Conditioners up to 65kW) Determination 2019 (GEMS 2019 Determination) to be installed under the VEU program
  • introducing new greenhouse gas abatement calculations to align with the new measures for heating and cooling energy efficiency used in the GEMS 2019 Determination; and
  • introducing a threshold on the global warming potential of refrigerants used in RCAC installed under VEU below 15 kilowatts (kW).

Prior to the introduction of the water heating and space heating and cooling activities DELWP will work with the Essential Services Commission (ESC) to develop guidance documentation on decommissioning requirements, and guidance material on sizing of RCAC and water heaters.

Home Energy Rating Assessment

The Home Energy Rating Assessment Response to Consultation  details the key decisions made in response to stakeholder feedback including:

  • introducing the Home Energy Rating Assessment activity into the VEU program by 31 May 2023
  • providing up-front incentives for consumers to undertake a Residential Efficiency Scorecard assessment, with other tools to be explored in future; and
  • updated greenhouse gas (GHG) abatement calculations.

Please contact energy.upgrades@delwp.vic.gov.au if you have any questions.

Page last updated: 10/03/23