Government incentives

How the Victorian Air Conditioning Discount works in 2024

September 25, 2024
A couple enjoying air conditioning

*We aim to keep this post as up-to-date as possible. As questions come in from our customers and regulations change through the VEU, we will update this post to include that information.

The Victorian Government has released another energy-efficiency incentive program. This time it’s around heating and cooling; air-conditioning to be more precise. 

As an Accredited Partner in the VEU program, we’re proud to upgrade old air-conditioning systems to new, energy-efficient ones, under the VEU’s discount. We offer this service to Victorian homes and businesses. And, like many of the VEU energy efficiency incentives, this offer generates a lot of questions.

In our last blog post, we answered lots of your questions around how the Victorian Hot Water Heat Pump Rebate works. And now we’re turning our attention to air conditioning and want to answer your questions, including how the Victorian Air Conditioning Discount Works and who is eligible. 

If you’re planning to upgrade your air conditioner researching the Victorian Air Conditioning Discount, an air conditioner rebate in Victoria, or this is brand new information – hopefully, this post should clear some things up, but if not – please get in touch as our energy efficiency experts are always happy to talk about how we can decrease your energy consumption and reduce those increasing energy bills.  

 

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To go straight to a question click below:

What is the Victorian Government Discount on Air Conditioning in 2024? 

Much like other Victorian Government VEU energy-efficiency incentives, the purpose of this offer is to encourage Victorians to replace their energy-guzzling old air conditioning systems, to newer model/s that require less energy.  

It has a 3-prongued effect: 

      1. Reduce your (and by association: the State’s) energy consumption 
      2. Reduce your energy bills 
      3. It provides you with a newer air conditioning model that will be more effective  

So, everyone wins.  

How this differs – The Victorian Air-Conditioning Discount is not a rebate. There are currently no rebates for air conditioners in Victoria. This offer generates a discount on the full price of parts and labor for a new system, so the incentive is applied straight away – no need to apply for a rebate. 

 

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Who Is Eligible for the Air Conditioning Discount? 

You should be eligible if you meet the following criteria: 

      • Your property is at least 2 years old 
      • The property is in Victoria (homes and businesses eligible) 
      • You haven’t claimed a VEU Air Conditioning upgrade in the last 2 years 
      • You are replacing an existing inefficient system* (if you’re not sure about the age and inefficiency of you system, please ask us!) 

*We can also offer a (reduced) discount on installations of new ACs that are not upgrading an existing system.

If you’d like more information on eligibility, details behind the program, and to check whether you’re eligible for air conditioner ‘rebates’, see the Vic Gov website here. 

Are Businesses Eligible for the Air Conditioning Discount? 

Yes, they are! If you’re a business and meet the above eligibility requirements for the discount, we can install one on your property.

How Do I Apply for the Air Conditioning Discount? 

You don’t need to do anything!  

That’s the best bit about this offer (besides the savings). As this offer isn’t a rebate, you don’t need to apply, or provide lots of information to claim your discount. The discounted price is automatically applied during your quote.   

Changing the settings on the air conditioner

How Much is the Discount, or is their Air Conditioning Free? 

The level of discount supplied is based on a few variables, including: 

      • The price of VEECs 
      • STCs generated from replacing the current inefficient unit 
      • The partner you select for installation (ie. Energy Makeovers) 

If you’d like a quote for the level of discount you’re eligible for, please get in touch. But, for a base line understanding of our prices, the air-conditioning discount enables us to supply a single split system, starting from $1,490, installation included. 

 

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What about FREE? – Is there a free air conditioning upgrade?

There is no free air conditioning upgrade in victoria offered within the VEU program. If you see any offers for a free air conditioner upgrade, be skeptical and ensure you check warranties, and reviews.

Can I Install the Air-Conditioning Myself and Still Receive the Discount? 

No. Like almost all of the VEU incentives to date, the product must be supplied and installed by an Accredited Partner in the program. If you’re a handy person, and comfortable with installations like this, we appreciate this might be frustrating, but it’s to ensure the safety of Victorians and make sure you get the most out of your new system.  

As above, we are an Accredited Partner, and therefore eligible to supply and install discounted aid conditioners within the VEU program.  

Plus, we have hundreds of 5-star reviews across Google and Product Review. Check them out! 

What Brands/Manufacturers are Available With the Air-Conditioning Discount? 

We currently supply Midea, ERS Tech, and Carrier. On request, we can also source Fujitsu and Mitsubishi. We remain brand agnostic, maintaining a watchful eye on all products approved for installation under the incentive. We do not order in bulk, unlike some of our competitors. We do so we can supply the best option to our customers by not limiting ourselves to one brand or product.  

Why can’t I have the air-conditioner brand I want?

We do have customers ask, “Can I have a Mitsubishi, Fujitsu, Daikin [insert your brand/product of choice]?”

The answer is, you can. However, if you want a product that we don’t currently supply, it can significantly slow the process down and increase the costs.

As a brief example, investigating the installation of a new product (to us) requires research, purchase, quotation, and sign-off with the VEU. There are many factors at play.

It’s not a no, if you do want an alternate product, but we do find, in most cases, our customers opt for the products we have in stock.

Why do we supply ERS Air Conditioning?

At Energy Makeovers we only supply products we can stand behind. We conduct extensive research into not only our suppliers and manufacturers, but also their manufacturing processes to ensure we only engage highly ethical companies. After many months of research, we have chosen ERS Tech to supply a range of multi head air-conditioning systems.

ERS Tech scored highest in our selection criteria that considered:
• Energy efficiency
• Environmental impact
• Technical design and innovation
• Aesthetics
• Noise pollution
• Reliability
• Maintenance requirements
• Value for money
• Ethical business practices

One of the deciding factors for Energy Makeovers was that ERS Tech have engaged Gree to manufacture their air-conditioning systems. Gree are one of the longest established and largest manufacturers and produce one in three air-conditioners sold globally. ERS Tech have proven to be a high quality, reliable supplier to Energy Makeovers over many years.

How do air-conditioners get approved for the VEU program?

Product suppliers apply to the Victorian Essential Services Commission (ESC) to accredit products for inclusion in the Victorian Energy Upgrade scheme (VEU). The application process is very rigorous and requires suppliers to demonstrate the product meets the very high performance standards mandated by the Victorian Government to qualify for VEU support. The documentary evidence required to support a VEU product approval application includes test reports from NATA accredited laboratories certifying the performance of the product. The approval criteria not only consider energy efficiency performance, but also lifespan and environmental impact.

Once the ESC is satisfied the product meets the accreditation requirements, they include the product in their approved product list published on their website allowing accredited providers to create VEECs for their installation.

Are discounted Air Conditioners made in Australia?

The air conditioners included in the VEU’s discounted air conditioner program are not made in Australia.

TBH, you will find it hard to find a brand/product made in Australia.

What Type of Air Conditioning is Eligible for a Discount? (Split, HVAC etc) 

We’d recommend you talk to us about the requirements for your property, because there are a variety available.  

 

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Our Installers and Accreditations

Our air conditioners are installed by our team of plumbers. In terms of regulations, for the installation of an air conditioning system, our qualified plumbers are qualified and experienced in installation.

If you’re installing a multi-head air conditioning system, this will require one of our more advanced plumbers with a RAC01 plumbing certification.

Our team also includes licenced A-grade electricians.

What size air conditioning system should I have?

Within the VEU discounted program, you can upgrade a single split system or upgrade to a multi-head. A multi-head system that has one large outdoor compressor connected to several wall mounted indoor head units.
The fans usually sit on top of each other, like the image below.

discounted air conditioning options

 

What you require may depend on your needs. For example, a property with effective insulation and double glazing might only need a single system.

In our experience, a typical three-bedroom Victorian home is best suited to the 3 system multi-head version you can see in the image above. We recommend installing a system into each room/open area that you want to heat/cool.

air con size we recommend

Do we remove and recycle your old air conditioner?

We exclusively install and supply air conditioning systems utilising the discount within the VEU program. In this discounted offer we do not remove and decommission old air conditioning units. But, we can!
If you want your old air conditioning system removed, we can do it for you at a cost of $150 per unit.

Do you remove old wall heaters?

Our team do not remove old wall heaters. We can decommission them for you so they’re completely inactive and safe, but we do not remove them.
We can only remove inactive split systems. Within the air conditioner discount, aesthetics and interiors are not included and are the responsibility of the customer.

What is the warranty—what if something goes wrong?

We offer seven-year warranties on our multi-head systems and five-year warranties on our single-split systems.
Energy Makeovers has been in business for over fifteen years, earning hundreds of five-star reviews. We have done so with impeccable customer service and high-quality installations and products. We stand by our offering and can reassure you that everything is in place to ensure you have the best system and offer for your property.

warranty on air conditioners

What about Upgrading from Gas to Electric?

We will have a post about upgrading from gas to electric air conditioning here, including how easy it is, how much it costs and what rebates are available.

Is the Air-Conditioning Upgrade Ducted?

It isn’t. This air-conditioning upgrade applies to individual stand-alone units and therefore, does not apply to across household integrated systems.

How Long Will the Air-Conditioning Discount in Victoria be Available For? 

That decision is with the Victorian State Government. It can depend on a few things, such as how popular the incentive turns out to be, its efficacy and demand. LED upgrades were around for almost a decade. So, it could be here for the foreseeable future. Or, they could pull it. Bottom line – we don’t know how long it’ll be around for, so the best time to take advantage of it is right now. 

How Quickly Will I see Savings? 

That’s hard to answer without your specific requirements, but it should be noticeable pretty much straight away in your next energy bill (dependent on your heating/cooling demands in that bill-paying period). If you’re asking about ROI, then that’s different. Again, it depends on your energy use and the system you selected to upgrade to, but we’d estimate the ROI period to be 2-4 years for a non-ducted upgrade and as little as 13 months for an upgrade from gas ducted.

How Much Will I Save With An Upgraded Air Conditioner? 

That’s one of our most commonly asked questions. Again, it will depend on your use, changing habits and the system you have upgraded to, but we estimate the savings will be $2,740 when upgrading from a gas ducted system, and somewhere between $1,490 and $1,790 from non-ducted (depending on the system installed) That’s a huge annual saving

At least $1,490 a year. And as much as $2,99o a year!

Can I stack the air conditioner upgrade with other Vic Gov Energy Efficiency Upgrades? 

Yes, you can! You can upgrade your air conditioner with this discount, install a hot water heat pump, upgrade your shower heads, install door seals and install solar. Add some, or add all of these upgrades into a package with Energy Makeovers and watch your energy bills shrink!

 

 

As awareness increases, Victoria’s energy efficiency incentives have grown in popularity and we predict the air conditioning discount to be a big hit with homes and businesses.  

Get an air conditioner upgrade and secure your spot with a quote from Energy Makeovers, and decrease those energy bills now! 

And, for those that are interested in a hot water heat pump to improve the efficiency of your hot water system and decrease your bills, we have information on that here.

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