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22 December 2022

The Department of Environment, Land, Water and Planning has released response to consultations for the water heating and space heating and cooling activity reviews and the introduction of a new home energy rating assessment activity within the Victorian Energy Upgrades (VEU) program.

Water heating activities

The Water Heating 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 water heaters with efficient solar electric or heat pump water heaters by 31 May 2023
  • 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 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; and
  • 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.

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: 19/01/23