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

28 October 2020: Update of 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.

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. Thank you to all those who provided input to 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 impacts of coronavirus (COVID-19).

The transition pathways allow bespoke phase out timelines for different categories of lighting, reducing incentives ahead of their removal. The reduction in incentives and removal of activities have also been designed to address technological, market and regulatory changes that mean lighting is becoming less additional.

Other decisions include providing a longer transition for mercury vapour lamp upgrades in all activities, the aligning of Part 34 J6 building based lighting upgrades with the National Construction Code (NCC) 2019 for 10 months, and the inclusion of T5 linear fluorescent and compact fluorescent lamp with non-integral ballast lighting upgrades as eligible activities.

The first round of changes for lighting activities will be made through the Victorian Energy Upgrades Specifications. These Specifications will come into effect on 31 March 2021.

Activity*31 Mar 202131 Jan 202231 Jan 2023
Part 21*Incentives reduced 
(30 June 2021)
Activity removed 
Part 27  Mercury vapour lamps removed
Part 34 J6Align with NCC 2019 IPDActivity removed 
Part 34 Non-J6High Intensity Discharge (HID) Incentive reduced (0.6)

High Intensity Discharge (HID) Incentive reduced (0.4)

Activities removed
T5, T8, T12 and CFL remain
Efficacy requirement introduced
Lamp lifetime reduced
Part 35  Mercury vapour lamps removed

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

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.

Victorian Energy Upgrades Consultation 2019 (Ongoing)

The Victorian Energy Upgrades (VEU) program is established under the Victorian Energy Efficiency Target Act 2007 to help Victoria reduce its greenhouse gas emissions, reduce the use of electricity and gas and invest in industries that provide energy demand management technology and services. The program provides subsidies for residential and business consumers to reduce their energy use by upgrading appliances, processes or buildings.

The Victorian Energy Efficiency Target Act 2007 requires annual targets for reducing emissions be set for the 2021 to 2025 period by May 2020. Additionally, with changes in Victoria’s lighting market – including decreasing unit costs, consumer demands, economies of scale and new standards from 2020 – there is a need to review the incentives provided to lighting activities through the VEU program.

Following preliminary consultations, the Department of Environment, Land, Water and Planning commenced formal consultations in December 2019, seeking stakeholder views on:

  • Target setting for Victorian Energy Upgrades (VEU) as outlined in a regulatory impact statement
  • Changes to VEU lighting activities as outlined in an issues paper.

Consultation on these has now closed. The department would like to thank everyone who provided a submission.

Visit the Engage Victoria website to access all relevant documents associated with these consultations and to subscribe to updates on these proposed changes.

Review of Measurement and Verification (M&V) method Specifications 2019

We held an information session on 28 May 2019 outlining proposed changes to the M&V method. These changes were supported by stakeholders and have now been incorporated into a new version of the Specifications.

The Department of Environment, Land, Water and Planning would like to thank everyone who provided a submission. A summary of finalised changes to the Specifications and responses to the consultation submissions can be downloaded here.

Review of Victorian Energy Efficiency Target Regulations 2018

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 were reviewed and remade in December 2018.

The Department of Environment, Land, Water and Planning would like to thank everyone who provided a submission.

Historical documents

For documents relating to previous rounds of consultation please refer to the program documents page.

Page last updated: 28/10/20