What Homeowners & Businesses in Victoria Need to Know
Victoria’s Victorian Energy Upgrades (VEU) Program has long been one of our state’s most impactful initiatives, helping households and businesses reduce energy costs and emissions. By providing financial incentives for approved energy-efficient products and systems, the program has supported millions of upgrades, including lighting, hot water systems, heating, cooling, and more.
The program has helped more than 2.4 million Victorian homes and about 170,000 businesses complete energy-saving upgrades. (source)
To date, it has abated more than 87 million tonnes of CO₂-equivalent greenhouse gas emissions (lifetime savings) at an average cost of ~$41 per tonne. (source)
The program has saved approximately A$4 billion in energy costs while reducing emissions by over 60 million tonnes CO₂-equivalent. FM Media
In 2025, there were some changes. The program entered a new phase with significant updates designed to accelerate electrification, support commercial-scale clean energy projects, and extend the program’s benefits out to 2045. These changes reflect Victoria’s broader commitment to achieving net-zero emissions while easing cost-of-living pressures and helping businesses manage energy costs.
We’re going to break down what was added to the VEU Program in 2025, and what continues to apply in 2026, across both residential and commercial sectors. You’ll learn how the incentives have evolved, what technologies are now eligible, and how Victorians can make the most of the latest opportunities in:
Whether you’re a homeowner looking to upgrade your appliances or a business exploring commercial solar, understanding these changes can help you plan smarter and save more.
2025’s updates to the Victorian Energy Upgrades (VEU) Program were a big win for homeowners across Victoria. The following information also applies, now that we’re in 2026.
With extended program funding, new technologies added to the list of eligible upgrades, and higher energy efficiency standards, Victorians now have more opportunities than ever to reduce both energy bills and carbon emissions.
💡 Quick fact: The VEU Program has already helped over 2.4 million homes cut their energy costs — saving Victorians more than $3–4 billion collectively and avoiding 87 million tonnes of CO₂ emissions to date (Source)
The Victorian Government has modernised the program to align with its long-term emissions reduction goals. Here’s what’s new for households this year:
1. Program Extension to 2045
The VEU Program has officially been extended until 2045, ensuring long-term certainty for households planning future upgrades. This provides stability for accredited providers and makes it easier for families to plan big-ticket energy improvements like solar or heat pumps.
2. Tougher Efficiency Standards
Eligible products must now meet stricter energy performance benchmarks. For example, only high-efficiency reverse-cycle air conditioners and heat pump hot water systems are approved under the new rules. This ensures better outcomes and greater savings over time.
3. Revised Co-Payment and Proof Requirements
The Essential Services Commission (ESC) has introduced new requirements for proof of minimum co-payment and product pricing, aimed at improving transparency and consumer protection.
4. Updated Eligibility for Residential Premises
Definitions have been refined to make sure incentives are only applied where energy efficiency gains are genuine — such as replacing gas systems with electric ones or upgrading older equipment.
Here are the programs and incentives for homeowners and renters in 2026
Replacing old electric or gas hot water systems with a high-efficiency heat pump can significantly cut household energy use.
Here’s a blog post on everything you need to know about hot water heat pump upgrades in 2026.
Energy-efficient reverse-cycle air conditioners and split systems continue to be eligible under the 2026 scheme.
Here’s a blog post explaining how the AC/Heating Upgrade Incentive works in 2026.
Additional approved upgrades under the VEU in 2026 include:
These smaller upgrades, when bundled together, can deliver meaningful reductions in annual household energy use.
The VEU Program is now locked in until 2045, giving households more time to act.
Electrification and energy efficiency are the key focus areas.
Rebates are available for heat pumps, efficient air conditioning, solar hot water, and insulation.
Homeowners must use accredited providers (like Energy Makeovers) and ensure installations meet the updated efficiency and proof-of-purchase rules.
Victoria’s businesses are also major winners under the 2026 changes to the Victorian Energy Upgrades (VEU) Program. With the inclusion of new commercial solar activities, updated incentives for high-efficiency systems, and simplified project-based pathways, it’s now easier than ever for organisations to cut operating costs and carbon emissions.
💡 Did you know? Since its launch, the VEU Program has supported more than 170,000 Victorian businesses, delivering bill savings exceeding $4 billion and reducing over 87 million tonnes of CO₂ emissions (Source)
Here are the programs and incentives for businesses and commercial properties in 2026
The updates in 2025 (and applicable in 2026) marked a significant expansion of the program’s commercial scope and brought new opportunities for businesses to access rebates for large-scale energy improvements.
1. New Commercial Solar PV Activity Introduced
For the first time, the VEU Program now includes commercial and industrial solar PV systems as an eligible activity.
Learn more about commercial solar for your business.
High-efficiency heat pump water heating systems are now eligible under Activity 44 of the VEU Program, offering one of the most cost-effective pathways for commercial sites to reduce their energy use.
They’re particularly valuable for hospitality venues, aged-care facilities, fitness centres, and manufacturing sites, where hot water demand is high and energy costs quickly add up. By switching to a VEU-approved heat pump, many businesses can achieve energy savings of 60–75% compared to older systems, with the added benefit of lower emissions and easier maintenance.
For even greater impact, these systems can be paired with commercial solar PV, allowing businesses to power their heat pumps with on-site renewable energy, creating a powerful combination of cost savings, sustainability, and long-term energy independence.
2026 VEU updates provide generous rebates for high-efficiency reverse-cycle systems and smart climate controls that optimise building performance.
These upgrades encourage businesses to replace ageing gas-fired or inefficient systems with modern electric alternatives, reducing both costs and emissions. Thanks to these incentives, payback periods are now shorter than ever, making HVAC upgrades in 2026 a smart investment for long-term savings.
Learn more about commercial AC upgrades here.
Energy-efficient LED lighting upgrades remain part of the VEU Program but now require stricter compliance with updated installation and performance standards.
In addition, industrial efficiency projects, such as upgrades to motors, compressors, and insulation, are supported under project-based activities, allowing businesses to claim rebates for verified, measurable energy savings.
Learn more here
How Ambulance Victoria upgraded their lighting to LEDs and their hot water system, and will now abate 1 tonne of carbon and save themselves $1,000 a year!
AV will now have almost no maintenance costs associated with their water heating. And they’ve dramatically improved their energy efficiency, saving the business over $1,300 after 5 years! Carbon abatement of: 1.4 barrels of oil left in the ground, 15 seedling trees planted, and 4 tonnes of greenhouse gas saved.
Read more in the case study, here.
Commercial solar PV systems are now officially part of the VEU scheme.
Upgrades for heat pumps, HVAC, and process efficiency attract strong 2026 incentives.
Simplified project-based pathways support custom efficiency projects.
Working with accredited VEU providers (like Energy Makeovers) is essential for compliance and rebate access.
The scheme provides long-term certainty through 2045, helping businesses plan capital upgrades strategically.
The 2026 Victorian Energy Upgrades (VEU) Program marks a turning point for both households and businesses in Victoria. By expanding the range of eligible technologies, lifting performance standards, and introducing new commercial activities like solar PV, the program is helping Victorians take meaningful steps toward a cleaner, more affordable energy future.
From heat pumps and efficient air conditioning systems in homes to solar power and large-scale electrification in businesses, the VEU Program is enabling real, measurable change — lowering bills today while cutting carbon for tomorrow.
Energy costs remain one of the biggest ongoing expenses for households and businesses alike. The VEU Program give Victorians more incentive — and more time — to switch to efficient, electric technologies. But as rebate levels can change, acting sooner ensures the highest possible savings.
As an accredited provider under the Victorian Energy Upgrades Program, Energy Makeovers helps homeowners and businesses:
Whether you’re looking to make your home more efficient or cut operating costs across your business sites, our experts will guide you from assessment through to installation — and ensure your upgrade qualifies for all available incentives.
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