Note: this website provides detailed policy information on the Victorian Energy Upgrades program and the Victorian Energy Efficiency Target (VEET) legislation and regulations.

  • If you are a business owner or householder looking for information on discount energy saving products in the Victorian Energy Upgrades program, please visit the Victorian Energy Saver website.
  • If you are a business owner or householder looking for information on reducing your energy bills, please visit the Victorian Energy Saver website.
  • If you are an accredited provider looking for information on activities covered by the program, please visit the Essential Service Commission website.

Latest news

24 December Victorian Energy Upgrades – VEU targets: response to consultation

The Department of Environment, Land, Water and Planning has published the Victorian Energy Upgrades – Response to Targets Consultation 2020.

A total of 82 stakeholder submissions were received through the consultation, which provided feedback on the proposed targets and other changes to the program. Thanks to all those who provided input into the consultation process.

In addition to the consideration of stakeholder feedback through the public consultation period, some changes have been made to the initial proposal, particularly in light of the impact of coronavirus (COVID-19).

For more information on the consultation and to download the Response to Targets Consultation 2020, please visit Engage Victoria: https://engage.vic.gov.au/victorian-energy-upgrades/targets.

18 December 2020: Victorian Energy Upgrades (VEU) new activities consultation and changes to M&V method

VEU new activities consultation

The Department of Environment, Land, Water and Planning (DELWP) is seeking to expand the range of activities that are available to households and businesses through the Victorian Energy Upgrades (VEU) program. These activities will increase the pool of opportunity for energy efficient upgrades and help achieve the 2021-2025 VEU program targets.

DELWP has just opened a public consultation on new activities, seeking stakeholder feedback on issues papers which set out options to introduce new activities into the VEU program, and draft regulations and specifications which govern how an activity can be carried out.

Your feedback is invited on four potential new VEU activities:

  • upgrades to the refrigeration equipment of cold rooms
  • installation of Energy Management Information Systems (EMIS) in commercial buildings
  • upgrades to install lagging (insulation) on pipework heated by gas appliances
  • installation of smart thermostats for residential heating and cooling systems.

Stakeholders can submit feedback through the Engage Victoria website, at https://engage.vic.gov.au/victorian-energy-upgrades-new-activities-consultation.

Feedback from submissions will be used to guide the creation and implementation of the new VEU activities.

This consultation will close on 5 February 2021.

Changes to Measurement & Verification (M&V) method

Since 2017, the M&V method has allowed businesses installing large or bespoke projects to receive incentives under the VEU program. This is done by using smart meter data to measure energy use before and after the energy efficiency project occurs. The M&V method supports the installation of on-site renewable energy which reduces the amount of energy a business draws from the grid, but until now has prevented sites that wish to export renewable energy from generating incentives.

Allowing export of renewable energy outside of the project measurement boundary is an issue regularly raised by stakeholders. Stakeholders have expressed that this rule excluded projects from using the method and damages the business case for other projects. Support for renewable energy installations, particularly solar photovoltaic (PV) systems, was also requested by stakeholders in consultation performed for the VEU emissions abatement targets in December 2019.

In response to stakeholder feedback a new version of the M&V specifications has been created – M&V Specifications V4.0 – which better supports on-site renewable energy generation by allowing export of renewable energy outside of the measurement boundary.

This change to the program is effective as of 18 December 2020. Existing projects may submit a request for variation to the ESC to allow export of renewable energy.

Research indicates that VEU could support installation of up to 100 megawatts of solar panels within ten years, providing Victorians with up to $20 million in incentives. This change will also allow the VEU program to assist Victoria in meeting upcoming VRET commitments.

Please note:

  • A correction has been made to Equation 2 of the Specifications which improves the accuracy of emissions abatement calculations for bioenergy and other fuel-switching projects
  • Some internal section references within the document have been corrected.

Download the updated Specifications and Frequently Asked Questions on the change here:

M&V Specifications V4.0 (DOCX, 186KB)

M&V Specifications V4.0 (PDF, 325KB)

M&V export rule FAQs (DOCX, 309KB)

M&V export rule FAQs (PDF, 179KB)


08 December 2020: Victorian Energy Upgrades - Future targets to support ambitious expansion

The Hon. Lily D’Ambrosio MP, Minister for Energy, Environment and Climate Change, has today announced that the VEU targets for 2022 to 2025 will be:

  • 6.7 million certificates in 2022
  • 6.9 million certificates in 2023
  • 7.1 million certificates in 2024
  • 7.3 million certificates in 2025.

The targets will deliver significant benefits to the energy system, help Victoria achieve its climate goals by locking in 28 million tonnes of emissions savings, and reduce energy prices for all consumers, whether they participate or not. On average, participating households and businesses stand to save over $120 and $510 respectively each year.

The targets herald a new phase of the program by expanding incentives to a broad range of crucial energy demand-side technologies that will support the cost-effective transition of the energy sector. They will further support recovery by providing an additional $1.3 billion in investment in the demand-side management industry between 2022 and 2025 and supporting over 2200 jobs annually.

The Department has listened to stakeholder feedback received in response to its consultation on targets, and throughout the coronavirus pandemic. In recognition of the need of an orderly and supported transition, the electricity emissions factors need to be updated to reflect increasing renewable penetration. Introducing this change through gradual decreases in each year to 2025 will support industry transition.

Increases to shortfall penalty rates will support an expanded range of activities and be introduced gradually as part of this support for transition.

Commencement Date

Shortfall Penalty

Electricity emissions factor

(in tonnes of carbon dioxide equivalent emissions per megawatt hour)

31 July 2021

$70

0.9546

31 January 2022

$80

0.8142

31 January 2023

$90

0.6738

31 January 2024

$90 (subject to 2023 review)

0.5334

31 January 2025

$90 (subject to 2023 review)

0.393

The Department will release a document shortly that outlines the reasons for its decision and responds comprehensively to feedback received from stakeholders.

The Department invites stakeholders to attend the 17 December forum being held by the Essential Services Commission at which it will provide further information on these matters. Stakeholders will have the opportunity to ask questions at this forum.


02 December 2020: Victorian Energy Upgrades - changes to restrictions

Victoria has moved to the Last Step of the roadmap to reopening, with key changes outlined in the Premier's media statement.

The requirements set out for the construction industry have been updated. The main change is that businesses are now allowed to doorknock for sales purposes.

Consistent with government requirements, all businesses involved in this form of lead generation and all other Victorian Energy Upgrades (VEU) activities must have an up-to-date COVIDSafe Plan for each workplace/site and must adhere to these at all times. Your COVIDSafe Plan must be consistent with requirements set out for the construction industry: https://www.coronavirus.vic.gov.au/coronavirus-sector-guidance-construction.

For businesses using doorknocking for lead generation, your COVIDSafe plan must also demonstrate your actions to help slow the spread of coronavirus (COVID-19) and manage risks while doorknocking; this will include face masks, physical distancing requirements and appropriate record keeping to support contact tracing. Details of how to prepare your COVIDSafe Plan are available at: https://www.coronavirus.vic.gov.au/creating-a-covidsafe-workplace

The Department of Environment, Land, Water and Planning (DELWP) and the Essential Services Commission will closely monitor the actions of VEU accredited providers and their lead generators, including responding and reporting to complaints.

DELWP recognises that coronavirus (COVID-19) restrictions have had a significant impact on businesses that participate in the VEU program and would like to thank program participants for their perseverance and engagement over this period.

Information on industry restrictions and guidance should be reviewed regularly at www.coronavirus.vic.gov.au.


28 October 2020: Victorian Energy Upgrades program activities recommence in line with changes to restrictions

Currently suspended Victorian Energy Upgrades (VEU) activities (i.e. high-volume residential activities) will be reinstated from 28 October in alignment with the government’s changes to restrictions in metropolitan Melbourne for businesses undertaking these types of activities in residential premises.

Incentives for the following activities under the VEU program will be reinstated from this date:

  • Incandescent lighting upgrades (Part 21 under the Victorian Energy Efficiency Target Regulations 2018)
  • Low-flow shower roses (Part 17)
  • Weather sealing (Part 15)
  • In-home display units (Part 30).

Consistent with government requirements, all businesses involved in these and all other VEU activities must have a COVIDSafe Plan. Employers engaged in VEU activities must have a High Risk COVIDSafe Plan in place for each workplace/site and must adhere to these at all times.

Details of how to prepare your COVIDSafe Plan are available at: https://www.coronavirus.vic.gov.au/creating-a-covidsafe-workplace

Your COVIDSafe Plan must be consistent with requirements set out for the small-scale construction industry: https://www.coronavirus.vic.gov.au/coronavirus-sector-guidance-construction.

The Industry Restart Guidelines Small-scale Construction FAQs allow these activities in occupied residential premises where it is possible to create a physical barrier between workers and occupants and/or the occupier can temporarily vacate the premises for duration of the works.

Doorknocking for sales and lead generation is not allowed anywhere in Victoria.

The suspension of some VEU program activities has been maintained over these past months consistent with the government’s restrictions for a wide range of business in metropolitan Melbourne. DELWP recognises that these restrictions have had a significant impact on businesses that participate in the VEU program and would like to thank program participants for their perseverance over this period.

Information on industry restrictions and guidance should be reviewed regularly at www.coronavirus.vic.gov.au.

Changes to Part 21 Lighting Incentives

The coronavirus (COVID-19) restrictions have significantly limited residential lighting upgrade activity in 2020 to date – and some impacts may continue to be felt as this sector restarts following the lifting of the suspension.

Taking account of this disruption to activities, DELWP has revised the date at which the phase down of residential lighting incentives will commence – this change revises the date published in the Victorian Energy Upgrades Lighting Activities – Response to Consultation on 30 September 2020, as follows:

The changes to Incandescent lighting upgrades (Part 21) scheduled for 31 March 2021, will now commence on 30 June 2021.

This change provides program participants with a clear notice period and a further three months of unrestricted activity with current incentives, to address concerns about supporting their ability to deliver significant further upgrades to Victorian households, meet forward contracts and plan for transition of their business models.


30 September 2020: Roadmap for reopening - industry information

VEU participants are encouraged to regularly review guidance and Frequently Asked Questions for the construction industry, which provides relevant information about the types of activities allowed under different restriction levels and steps of reopening: www.coronavirus.vic.gov.au/coronavirus-sector-guidance-construction.

On 29 September, specific updates were made for solar and energy efficiency, clarifying which energy efficiency activities are permitted under each step of reopening. Refer to the Industry FAQ – Small Scale Construction for details.

Anyone doing energy upgrades, including their sub-contractors, must ensure they are compliant with the permitted workplaces requirements and COVIDSafe Plan (or High Risk COVIDSafe Plan) requirements.

30 September 2020: Victorian Energy Upgrades – changes to lighting, response to consultation

The Department of Environment, Land, Water and Planning has published the Victorian Energy Upgrades – Lighting Activities Issues Paper – Response to Consultation.

A total of 49 stakeholder submissions were received through the consultation, which provided feedback specific to the proposed changes to lighting activities in the program. Thanks to all those who provided input into the consultation process.

DELWP has considered this feedback and the supporting evidence and decided to revise all changes to lighting activities. This decision will support program participant business transition and planning and minimise the impacts on jobs, particularly in consideration of the impact of coronavirus (COVID-19).

For information on the decision and the timeline of changes to lighting activities, go to the VEU Consultation page .

For more information on the consultation and to download the Lighting Response to Consultation, please visit Engage Victoria: https://engage.vic.gov.au/victorian-energy-upgrades/lighting.


14 August 2020

The suspension of incentives for the following high-volume activities will continue to apply in both residential and non-residential premises across Victoria.

  • Incandescent lighting upgrades (Part 21 in the Victorian Energy Efficiency Target Regulations 2018)
  • Low flow shower roses (Part 17)
  • Weather sealing (Part 15)
  • In-home display unit (Part 30).

The use of doorknocking as a form of lead generation or sales in the VEU program is not permitted anywhere in Victoria.

For up-to-date information, visit www.coronavirus.vic.gov.au

What help is available for businesses impacted by coronavirus (COVID-19)?

We understand the current situation and coronavirus impacts are challenging for some program participants. For those businesses dealing with financial impacts or closures, the State Government will provide support through an expanded Business Support Fund.

Businesses across the state can access information by calling the Business Victoria hotline on 13 22 15. This includes information about support services, including those available through Business Victoria, which offer mentoring to help operators develop business continuity and recovery plans.

Businesses can also find advice, updates and support to help your workplace plan from Business Victoria at: https://www.business.vic.gov.au/disputes-disasters-and-succession-planning/illness-and-business-management-plan/coronavirus-business-support

2021 TARGET FOR THE VICTORIAN ENERGY UPGRADES PROGRAM

The Hon. Lily D’Ambrosio, Minister for Energy, Environment and Climate Change and Minister for Solar Homes, has announced that the Victorian Energy Upgrades target for 2021 will be 6.5 million certificates.

The letter from the Minister (available here) outlines the details of decisions on the 2021 target and the electricity emissions factor. The decision on targets for 2022 to 2025 and associated changes will be determined before the end of the year.


Measurement and Verification method

Following a public consultation, the Department of Environment, Land, Water and Planning has made a number of changes which are intended to make the Measurement and Verification (M&V) method easier to use. These changes have been incorporated into the Specifications and the updated Victorian Energy Upgrades Measurement and Verification Specifications Version 3.0 are effective 12 September 2019.

A summary of the main updates is provided below.

Definitions

  • Upgrade means the change to equipment, controls, and/or behaviour, or the set of changes to equipment, controls, and/or behaviour as a part of the project.

Multiple Premises Projects

  • A single project may include multiple essentially identical upgrades at multiple essentially identical premises.
  • All site-specific information is required for each premises, but;
  • a single scoping plan, single project plan, and single impact report may be submitted per project.

Non-Uniform Utility Data

  • Non-uniform measurement periods may be used to construct an energy model if the length of each period is determined by utility data.

Different Measurement Frequency for Different Measurement Boundaries

  • Upgrades affecting the same energy source may use different measurement frequencies for different measurement boundaries.

Multiple Methods of Certificate Creation

  • Upgrades may choose a method of certificate creation as appropriate for each measurement boundary.
  • Essentially identical upgrades must choose the same method of certificate creation.

Download the updated Specifications here:

M&V Specifications V3.0.docx

M&V Specifications V3.0.pdf

Proposed New Activity - Refrigerated Cold Rooms

The Department of Environment, Land, Water and Planning is exploring the introduction of new activities to the Victorian Energy Upgrades program. Research undertaken has identified that refrigerated cold rooms present a significant opportunity for improving the energy productivity of many SMEs that produce, store, prepare or retail food and drinks. There are approximately 65,000 cold rooms in Victoria, they are the major contributor to many businesses’ energy costs and the energy efficiency of most cold rooms can be significantly improved.

The new activities involve undertaking upgrades to the refrigeration equipment of cold rooms. As part of this work the Department would like to consult with the public concerning these proposed activities.

As part of the public consultation process a Cold Room Issues Paper has been prepared which sets out the options to introduce the activities into the VEU program and to seek the views of interested stakeholders on a range of related issues. Feedback from submissions will be used to guide the creation and implementation of the new VEU activities.

Download the Issues Paper here:

Cold Room Issues Paper.docx

Cold Room Issues Paper.pdf

You can submit your feedback by emailing energy.upgrades@delwp.vic.gov.au, or sending a hard copy submission to: Victorian Energy Upgrades, Department of Environment, Land, Water and Planning, PO Box 500, East Melbourne, VIC 8002.

If you are interested in learning more about the proposed changes, or if you wish to raise any preliminary queries with the department, please email energy.upgrades@delwp.vic.gov.au

If you wish to participate in an information session on these proposed activities, please include this in your written submission.

All feedback will need to be submitted to the Department by 16 August 2019.

Updated Victorian Energy Upgrades Specifications V2.0

The Department of Environment, Land, Water and Planning has updated the Victorian Energy Upgrades Specifications 2018 (the Specifications) to make a number or minor corrections and clarifications. The updated Specifications Version 2.0 will commence on 10 June 2019.

The updates include:

Part 1 and 3: Water Heating Activities

Removal of the Parts ending on 9 June 2019

Clarification of the Zone 5 calculations

Clarification of the calculations for products covered by the transitional requirements in the Regulations

Correction of the Auxiliary Energy Factors (AEF) to be used in the calculations

Part 15: Weather Sealing

Correct the warranty period for weather sealing products with a warranty of 5 years

Part 34: Building Based Lighting Upgrades

Allowance for space types not listed in table 34.12 to use space types listed in table 34.8 to determine operating hours

Part 37 to 42 – Gas Activities

Clarified wording for the gas activities You can find downloads of the Specifications Version 2.0 and a summary of the changes  here.

Public Consultation on proposed changes to the Measurement and Verification Method Specifications

The Department of Environment, Land, Water and Planning is seeking your feedback on proposed changes to the Measurement and Verification (M&V) method Specifications (highlighted in tracked changes in the documents below). These changes are based on the implementation and use of the M&V method. We have also incorporated feedback we have received on the method to date. These changes are intended to make the method easier to use, and include:

  • allowing businesses to undertake multiple essentially identical upgrades at multiple premises under a single project
  • other minor changes to make the process of data gathering and verification of savings more workable in industry.

The following items are available for download:

Summary of proposed changes to M&V Specifications.docx (DOCX, 125.7 KB)

Summary of proposed changes to M&V Specifications.pdf (PDF, 336.8 KB)

CONSULTATION DRAFT - Measurement-and-Verification-in-Victorian-Energy-Upgrades-Specifications-Version-3.0.docx (DOCX, 194.2 KB)

CONSULTATION DRAFT - Measurement and Verification in Victorian Energy Upgrades Specifications Version 3.0.pdf

We are seeking your feedback on these issues and other suggestions on how the method can be made more user friendly.

Responses to the consultation must be in writing and be sent to energy.upgrades@delwp.vic.gov.au by Friday 14 June 2019.

Submissions may be published unless otherwise requested. Published submissions will include the name of the organisation a submission is made under, or the post code for submissions made by an individual.

An information session on these changes was held on Tuesday 28 May 2019.

The presentation from this information session is available for download:

Specs change information session presentation.pdf

Consultation on the process for setting the targets for the Victorian Energy Upgrades program

We held an information session on Monday 15 October 2018 about the process for setting the targets for the Victorian Energy Upgrades program for 2021 to 2025. You can find the presentation from the session here.

Next year we will be conducting formal consultations as part of the process to set the 2021 to 2025 targets for Victorian Energy Upgrades. This will commence with the release of a Regulatory Impact Statement (RIS) and invitation for formal submissions. Ahead of this process, we are interested in hearing your thoughts on considerations we should bring to the development of the RIS.

You may wish to address the following questions in your response:

  1. What other energy and climate change policies do you think we should consider in setting targets?
  2. What issues would you like to see us consider in determining the greenhouse gas savings attributed to energy savings?
  3. What issues would you like to see us consider in relation to energy affordability?
  4. Should the program incentivise maximising self-consumption of rooftop solar?
  5. How should the program incentivise gas efficiency?
  6. Should the current level of incentives provided to each type of lighting be continued?
  7. What impact would the removal of incentives for lighting have on you?
  8. Are there energy efficiency activities currently not incentivised that should be incentivised?
  9. What issues would you like to see us consider regarding large energy users role in the program?
  10. Is there anything else we should consider as part of the analysis?

Please provide your responses in writing by Monday 3 December 2018, by sending to energy.upgrades@delwp.vic.gov.au

Review of Victorian Energy Efficiency Target Regulations

In Victoria, regulations must be remade every 10 years. The Victorian Energy Efficiency Target Regulations, which set out the requirements for the Victorian Energy Upgrades program, were made in 2008 and are therefore due to be reviewed and remade before they expire or ‘sunset’ on 11 December 2018.

Consultation on the proposed Regulations has now closed. The Department of Environment, Land, Water and Planning would like to thank everyone who provided a submission. The Department is now analysing these submissions and will provide an update in the third quarter of 2018 with the view of finalising the remaking of the Regulations by October 2018.

Visit the Engage Victoria website to subscribe to updates on this review.

New grants for Measurement and Verification projects

The Victorian Government released $250,000 in Custom Upgrades Grants using the Measurement and Verification method. Each individual grant will have a value of up to $25,000. They will support Victorian businesses to fund the initial stages of an energy efficiency project, including case studies, metering and baseline (i.e. “business as usual”) data collection.

The grants application process has now closed.

More information

Decision on proposed changes to Schedule 34 Lighting Upgrade

From 25 September to 1 November 2017, the Department of Environment, Land, Water and Planning (the department) consulted on proposed changes to the number of Victorian Energy Efficiency Certificates (VEECs) generated by certain types of lighting upgrades under Victorian Energy Upgrades, including a consultation session in October 2017.

Consultation on these proposed changes has now closed, and the department would like to thank those who made a submission.

Read the Government Gazette a Notice of Declaration specifying the discount factors to be applied to certain types of Schedule 34 lighting upgrade activities, as required under Section 19 of the Victorian Energy Efficiency Target Act 2007.

From 1 February 2018, discount factors will apply to certain types of lighting upgrades, specifically:

  • T8 or T12 fluorescent lamps in any environment
  • high intensity discharge lamps (metal halide, mercury vapour and high pressure sodium lamps) in building-based environments.

The department’s response to consultation is now available Word (DOCX, 337.0 KB); PDF (PDF, 250.8 KB).

Responses to consultation
(PDF, 1.8 MB)

Discount factor consultation paper
(PDF, 500.6 KB)

Discount factor consultation paper
(DOCX, 350.4 KB)

Victorian Energy Upgrades launched

On 1 August 2017, the Victorian Energy Upgrades program was announced as the new public-facing name of the program established under the Victorian Energy Efficiency Target (VEET) Act 2007. New marketing materials, including brochures, case studies, videos and web content, have been developed to raise the profile of the program.

Please refer to the Victorian Energy Upgrades website to view the new marketing materials or for more information.

The ‘Energy Saver Incentive’ name will no longer be used. ‘VEET’ will continue to be used for references to the Act and associated regulations.

You can download presentations from the launch event including the overview of recent changes (PDF, 6.0 MB) and the Project-based activities information session (PDF, 831.6 KB).

Commercial Lighting Issues Paper

The Department of Environment, Land, Water and Planning released the discussion paper (PDF, 1.0 MB) to seek stakeholder feedback on:

  • the remaining opportunities for commercial lighting upgrades through Victorian Energy Upgrades
  • key issues associated with the earlier-than-anticipated achievement of the Victorian Energy Upgrades program target for 2017
  • how the rollout of energy efficiency activities, which historically has rapidly expanded and contracted, impacts participants.

Responses to this discussion paper are now closed and consultation is now open on proposed changes to commercial lighting upgrades. Please see above for further details.

Project-based activities

The Victorian Energy Efficiency Target (Project-Based Activities) Regulations 2017—which provide for project-based activities including the Measurement and Verification (M&V) method—came into effect on 19 June 2017. Find out more on the project-based activities page.

The Department of Environment, Land, Water and Planning consulted on project-based activities in June 2016. Our response to submissions for the M&V method is now available on the consultation page, and includes all non-confidential submissions.

Large energy user opt in

From 1 August 2017, all large energy users that took part in EPA Victoria’s Environment and Resource Efficiency Plans (EREP) program, and were excluded from the Victorian Energy Upgrades program, will be able to create certificates and liabilities under the program if they choose to do so. Find out more on the large energy user opt in page.

Weather sealing

Changes to weather sealing (Schedule 15) have been introduced to the Regulations and came into effect on 1 July 2017. Please refer to the consultation page to access the Department of Environment, Land, Water and Planning’s response to the consultation conducted in 2016.

Subscribe to updates

To receive updates about Victorian Energy Upgrades and upcoming opportunities, or to provide stakeholder feedback, please email energy.upgrades@delwp.vic.gov.au or fill in the form below.



Page last updated: 24/12/20