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The cost of heating and cooling can account for up to 50% of your business energy bills.
By replacing old heating and cooling systems with more energy-efficient ones or simply purchasing new energy-efficient ones, you can significantly reduce your costs and energy use.
Eligibility
All Victorian businesses are eligible to apply for discounts.
Your participation is voluntary.
New upgrades available
Install an energy-efficient reverse cycle air conditioner (RCAC) and significantly reduce your energy use and costs. With this new activity you can only install a:
- VEU approved product
- range of ducted and non-ducted RCACs
- high-efficiency RCACs capable of both heating and cooling.
Note: to be eligible for a discount, the accredited provider or installer may also be required to decommission your existing heating system. The following type of heating and cooling appliances can be upgraded to energy-efficient reverse cycle air conditioners:
Existing equipment to be decommissioned | Definition |
Hard-wired resistance electric room heater | Electric resistance room heaters that are hard-wired are fixed to a wall and provide heating to a single room. Resistance heating elements cause electrical energy to be converted to heat energy and distributed as either radiant or convection heat. To be upgraded these heaters must be the main form of heating at the premises. |
Central electric resistance ducted heater | Central electric resistance ducted heaters are stand-alone heating units which are designed for installation with ducts to distribute heat. These must provide heating to a space with a floor area of at least 100m2. |
Hard-wired slab heater | These units provide heat to a whole house via electric cabling embedded in the slab. They heat the concrete to a low temperature which acts as a low temperature radiator, as well as heating the air in the room. |
Ducted (whole-of-home) gas heater | Ducted gas heaters consist of a central furnace unit that supplies heating to different parts of the house via ductwork. Units can be installed under the floor, in the ceiling or next to an external wall. Heat is distributed via ducting found in the ceiling or under the floor. |
Non-ducted (room) gas heater | Non-ducted gas heaters (also referred to as room gas heaters) are often fixed and designed to heat a single room or open plan area by burning natural gas or LPG. |
Refrigerative air conditioner | An air conditioner capable of cooling only. |
Ducted (whole-of-home) reverse cycle air conditioner | Ducted reverse cycle air conditioners provide heating and cooling to different parts of the house via ductwork. |
Non-ducted reverse cycle air conditioner | Non-ducted reverse cycle air conditioners provide heating and cooling for a single room or open plan area. Can be split systems, which have an indoor and outdoor unit. |
None of the combinations specified | This represents any equipment not captured in available decommissioning options or in instances where there is no heating and/or cooling equipment present. |
Key steps when organising a heating and cooling upgrade
To get a discount on the installation of a heating and cooling system you must:
- install an approved product
Hint: research these products for their suitability and quality. There are a lot of products approved for installation as part of VEU. Not all products are of the same quality or suitable for every environment. - work with an accredited provider
Hint: get quotes from several providers. Accredited providers offer different types of products, services, expertise, and costs. Make sure to get a quote from several accredited providers on the final installed price of the appliance, which includes the discount. - decommission your existing system.
Working with accredited providers
An accredited provider is:
- any business that is approved to deliver or facilitate installations in the VEU program
- responsible for helping you get a discount on an installed appliance through the VEU program.
When doing an installation through the VEU program, accredited providers can either:
- use their own tradesperson, or
- work with a tradesperson of your choice.
Accredited providers will be able to explain:
- the steps to take part in the program
- the types of products can you install to get a discount
- the necessary qualifications of the tradesperson who installs the heating and cooling system.
Remember: you must work with an accredited provider to get a discount on an installed appliance through the VEU program.
How to check if a person or business is accredited under the VEU program
Go to the Essential Services Commission’s VEU Registry of Accredited Persons and:
- select the ‘Business Name’ drop-down menu
- scroll until you see the accredited provider you are searching for.
Note: accredited providers often work with installers who are not listed on the registry.
How much discount you can expect
Installing an efficient room-reverse cycle air conditioner
Current system | Upgrade system size | Indicative discount* |
Hard-wired resistance electric room heater | 3kW to 9kW | $420 to $490 |
Ducted gas heater | If four split systems are installed in total:
Consider if a multi-split reverse cycle air conditioner may be a better option, this will reduce the number of outdoor units. | $630 to $840 |
Non-ducted gas heater | 3kW to 9kW | $210 to $490 |
Non-ducted reverse cycle air conditioner | 3kW to 9kW | $140 to $210 |
No decommissioning | 3kW to 9kW | $70 to $210 |
Installing an efficient ducted reverse cycle air conditioner
Current system | Upgrade system size | Indicative discount* |
Central electric resistance ducted heater | 16kW to 56kW | $3,500 to $3,640 |
Ducted gas heater | 16kW 25kW 32kW 56kW | $980 to $1,820 $1960 to $2,310 $2,310 to $2,590 $3,500 to $3,990 |
Ducted reverse cycle air conditioner | 16kW 25kW 32kW 56kW | $350 to $1,050 $1,120 to $1,610 $1,470 to $1,820 $1,750 to $3,430 |
No decommissioning | 16kW to 56kW | $350 to $770 |
*This figure is based on a certificate price of $70.
The final installed price of the appliance, which includes the discount, is up to the accredited provider and will depend on several factors, including:
- certificate price (which fluctuates)
- location
- installation costs
- the accredited provider’s administrative costs.
For more information on the certificate price under the VEU program, please see Victorian Energy Efficiency Certificates (VEECs).
Find an accredited provider in your area
Find an accredited provider in your area
Please note: as the VEU is a market-based program:
- not all accredited providers listed above will necessarily be offering heating and cooling upgrades at present
- accredited providers can choose when and where they undertake upgrades.
Page last updated: 22/09/23