*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. This has been updated to reflect discounts for 2026.
We update this post as the VEU program changes. As an Accredited Provider installing under this program daily, we aim to keep the information here accurate and current. If you notice anything out of date, please get in touch.
If you’re looking for a Victorian air conditioning rebate, you’re in the right place. The program you’re thinking of runs through the Victorian Energy Upgrades (VEU) scheme, administered by the Essential Services Commission of Victoria. It’s widely called a rebate, and that’s a reasonable description: the Victorian Government funds a significant reduction on the cost of upgrading your air conditioning system. The technical term used in the program is a discount, which in practice means something better than a traditional rebate. Rather than paying full price and claiming money back later, the savings are applied directly to your installation invoice on the day. No paperwork, no waiting, no claim form.
In 2026, eligible Victorian homes and businesses can receive up to $5,530 off a new reverse cycle air conditioning system, according to the Victorian Government’s official VEU page. The largest discounts apply when replacing a gas ducted heating system with an efficient reverse cycle system. For split system upgrades, the savings are lower but still substantial.
We install discounted air conditioning systems for Victorian homes and businesses as a Clean Energy Council Approved Solar Retailer and VEU Accredited Provider. In our last blog post, we answered lots of your questions around how the Victorian Hot Water Heat Pump Rebate works. This post answers every question we regularly receive, from how much you’ll save, to whether you qualify, to what happens on installation day.
The Victorian air conditioning rebate is a government-backed incentive delivered through the Victorian Energy Upgrades (VEU) program. When an accredited provider installs an approved, high-efficiency reverse-cycle air conditioner, Victorian Energy Efficiency Certificates (VEECs) are generated based on the lifetime energy savings from the upgrade. The provider sells those certificates to energy retailers, and the value is passed back to you as a reduction on your installation price.
How much is the rebate?
As a general guide, based on the official Vic Gov heating and cooling page (updated May 2026):
VEEC prices change with market conditions; your actual rebate may be higher or lower. Contact us for a quote that reflects today’s rate.
| What you’re replacing | VEU rebate at $89/VEEC | Your cost from (EM) |
|---|---|---|
| Gas ducted heater → multi-head split system | Up to $5,530 | Quote required |
| Old inefficient split system → new split | Varies with VEEC price | From $1,490 |
| New installation (no existing system) | Reduced discount available | Quote required |
Discount amounts vary based on current VEEC market prices. Contact us for a quote that reflects today’s rates.
You’re in the right place. The Victorian air conditioning rebate has been available since 2019 and continues in 2026 with no end date announced. The program, eligibility rules, and discount mechanism remain the same as in previous years. The main thing that changes over time is the VEEC market price, which affects the rebate amount. The figures on this page reflect the current 2026 rate.
You don’t need to apply. That’s one of the best things about this program.
Because the rebate is applied as an upfront discount rather than a claim-back payment, there is no application form and no government portal to navigate. The accredited installer handles all the paperwork on their end. Your experience as a customer is simple:
The only requirement from you is a minimum co-payment: $200 for systems up to 10kW capacity, or $1,000 for systems above 10kW. This is a VEU program rule. Any provider advertising a completely free air conditioner is not complying with program requirements — be sceptical.
The VEU air conditioning rebate is open to most Victorian properties. You are eligible if:
There is no income test and no means test. The program is open to all Victorian property owners regardless of household income, size, or postcode. Renters are also eligible, we recommend aligning with your landlord before proceeding, as the landlord’s consent is generally required.
For the full eligibility criteria, see the Victorian Government’s heating and cooling discounts page.
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
Yes. Victorian businesses that meet the above criteria can access the same rebate as residential customers. The property must be in Victoria, the system being replaced must be at least 2 years old, and the installation must be carried out by an accredited provider. We install discounted systems in commercial properties regularly. Contact us to discuss your business premises.
The level of rebate you receive depends on what system you’re replacing and the current VEEC market price. See the full rebate table above for a breakdown by system type, including current estimates based on the live VEEC price of $89 per certificate (May 2026).
As a baseline, our discounted single-split systems start at $1,490, installation included.
To qualify for VEU program discounts, a minimum payment of $200 is required for systems up to 10kw capacity and $1,000 for systems with a capacity greater than 10kw. Therefore, there are no FREE air conditioning upgrades in Victoria, so be very sceptical of any advertisements or claims that air conditioners can be installed free of charge.
No. Like almost all of the VEU incentives to date, the product must be supplied and installed by an Accredited Provider 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 Provider, 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!
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.
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.
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:
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.
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.
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.
The Essential Services Commission of Victoria review and approve air conditioners for support under the VEU program. Currently, there are hundreds of air conditioning system options approved under the VEU Program, including single systems, multi-head systems, VRF systems and ducted systems. Each type of system has pros and cons. Our Energy Efficiency experts can assist you in understanding the best solution for your specific needs.
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.
Within the VEU discounted program, you can upgrade a single split system or upgrade to a multi-head. A multi-head system 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.
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 in each room/open area that you want to heat/cool.
| Air Conditioning Size We Recommend | ||
|---|---|---|
| Room Size | Example | Output |
| Small (Up to 20m²) |
Bedroom or study | 2.5 – 3kW |
| Medium (21–40m²) |
Bedroom with ensuite, small lounge | 3 – 5kW |
| Large (41–60m²) |
Lounge, large kitchen | 5 – 8kW |
| Extra large (Over 60m²) |
Open plan areas | >8kW |
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.
If your home currently has a gas ducted heating system, there is a specific reason to consider upgrading sooner rather than later: from 1 March 2027, gas hot water systems in existing Victorian homes must be replaced with efficient electric alternatives at end-of-life. While this rule applies directly to hot water, it signals a broader direction in Victorian policy: new gas connections to existing homes for heating are also being phased out progressively.
More immediately, the 2027 gas phase-out creates real demand pressure. As more households move away from gas, installer capacity tightens and VEEC prices respond to volume. Locking in your upgrade now means accessing the rebate at current rates, avoiding the pre-deadline rush, and getting a new system installed before winter on your terms rather than under pressure.
The largest rebate in the program goes to gas ducted system replacements. At the current VEEC price of $89, replacing a gas ducted heater with a multi-head split system attracts a rebate of up to $3,560. That is the biggest single discount available under the VEU air conditioning program, and it exists specifically because the energy saving from switching off a gas system is so significant.
We have a helpful blog post with information about converting your gas central heating to electric. Here’s a quick insight into how much you could save:
| Heating Source | Annual |
|---|---|
| Gas Ducted Heating Costs | $3,368 |
| Multi-Head Split System | $628 |
| Annual Savings | $2,740 |
| Cost of Multi-Head (4 x Heads) | $3,990 |
| ROI | 19 Months |
Source: planning.vic.gov.au and premier.vic.gov.au.
For most Victorian households, yes. Here’s an honest breakdown.
The case for doing it: The rebate is real and applied immediately. A single split system that would cost $3,000 to $4,500 at full retail can be accessed through Energy Makeovers from $1,490 installed, roughly half the retail cost. For a multi-head system across three or four rooms, the savings are larger. There is no paperwork, no claim form, and no delay.
The case for waiting: There isn’t a compelling one. The VEU program has been extended to 2045 under the Victorian Energy Efficiency Target Amendment Act, so the program itself isn’t going anywhere. However, the program is subject to Government policy change, so there can be no guarantee of the current level of benefit being available in the future. VEEC prices do fluctuate, which means discount values shift — if current prices are favourable, locking in a quote now is generally the better move.
What about ‘free air conditioner’ advertising? Be sceptical. VEU program rules require a minimum customer co-payment of $200 for systems up to 10kW and $1,000 for systems above 10kW. Any provider advertising a completely free system is either not complying with program rules or has embedded costs elsewhere. Energy Makeovers shows the full price breakdown in every quote, with the rebate clearly itemised.
There are two types of saving — the upfront rebate on installation, and the ongoing reduction in your energy bills. They are different numbers.
Upfront saving (the VEU rebate): This is what comes off your installation invoice on the day. See the rebate table above for current estimates by system type. At today’s VEEC price, the range for EM-installed systems is from $89 on a new installation with no existing system to replace, up to $3,560 for a gas ducted to multi-head split upgrade.
Ongoing energy bill savings: This depends on what you’re replacing and how you use the system. Based on typical Victorian households:
| Upgrading from | Estimated annual energy saving |
|---|---|
| Gas ducted heating system | Around $2,740 per year |
| Old, inefficient split system | $1,490 to $1,790 per year |
Estimates based on typical Victorian household usage patterns and current energy tariffs. Your actual savings will depend on your heating and cooling habits, local climate, and whether you have rooftop solar.
Yes. The Victorian Government funds significant rebates on new air conditioning systems through the Victorian Energy Upgrades (VEU) program. The program officially calls these rebates ‘discounts’ because the saving is applied upfront at point of installation rather than paid back later, but the effect is the same. Eligible Victorians can currently receive up to $3,560 off a new reverse cycle system (at the current VEEC price of $89, May 2026).
Most Victorian homeowners and businesses are eligible. Your property must be in Victoria, at least 2 years old, and you must be replacing a system that is also at least 2 years old. There is no income test. You cannot have claimed a VEU heating or cooling upgrade on the same property in the last 2 years. Renters may also be eligible with landlord consent.
The split system rebate in Victoria is the VEU program discount applied to the installation of a new, high-efficiency reverse cycle split system air conditioner. The rebate amount depends on what system you are replacing and the current VEEC market price. Replacing a non-ducted gas room heater with a split system currently attracts a rebate of $712 to $1,780. Replacing an old, inefficient split system with a new one costs $267 to $623. See the rebate table above for a full breakdown.
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.
We do not install ducted systems. Our systems consist of individual air conditioning units each with their own compressor or multi-head systems where a large central compressor supports multiple head units in several rooms.”
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.
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.
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 $2,990 a year!
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
We exclusively supply and install air conditioning systems utilising the discount within the VEU program. In this discounted offer, we remove the old air conditioning units and leave them safely at your premises for disposal. If you wish, we can dispose of the old units at a licensed recycler for you at a cost of $150 per unit.
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.
No. VEU program rules require a minimum customer co-payment of $200 for systems up to 10kW capacity and $1,000 for systems above 10kW. Any advertising claiming a completely free air conditioner is not consistent with program requirements. The rebate is substantial — up to $3,560 at current rates — but not 100% of the cost.
Energy Makeovers currently supplies Midea, ERS Tech, and Carrier systems under the VEU program. On request, we can also source Fujitsu and Mitsubishi. All systems we supply are approved for VEU installation by the Essential Services Commission. We remain brand-agnostic, we don’t bulk-buy from a single manufacturer, which means we can match the right product to your property rather than what we happen to have in stock.
Read our Case Study on the LED upgrade we undertook for Cardinia Shire Council
As part of their electrification program Frankston Council installed a solar energy system with Energy Makeovers. Read the project case study here.
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