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31 January 2023: Updates to the Victorian Energy Upgrades Specifications 2018

The Department of Energy, Environment and Climate Action has published the Victorian Energy Upgrades (VEU) Specifications 2018 Version 14.0. These specifications include previously announced changes to lighting activities in the VEU program.

Lighting changes take effect from 1 February 2023

From 1 February 2023, the following changes will be made to lighting activities under the VEU program:

  • Removal of incentives for all energy efficient LED lighting upgrades under Part 21.
  • Changes to building based lighting activities under Part 34, including:
    • Removal of incentives for most building-based lighting activities under Part 34 including the removal of activities that incentivise LED lamp upgrades with more efficient LED lamps.
    • Linear and circular fluorescent lamp upgrades (T5, T8, T12) and non-integral ballast compact fluorescent lamp (CFL) luminaire upgrades will remain eligible under Part 34C.
    • All other eligible upgrade scenarios for 34C upgrades will be removed.
    • Reduced lifetimes for lamp replacements under scenario 34C from 5 years or a maximum of 5 years, to 4 years or a maximum of 4 years will reduce incentives associated with these activities.
  • Removal of incentives for mercury vapour lamp upgrades under Parts 27, 34 and 35.

The VEU program has been incredibly successful at encouraging the transformation of the lighting industry. Victorian consumers have greatly benefited from the highly efficient LED lighting products installed using incentives provided by the program. Lighting technology development, decreasing unit costs, consumer demands, economies of scale and market disruption have resulted in a vastly changed lighting market for Victoria.

The VEU program can only incentivise upgrade activities where the greenhouse gas (GHG) emissions reduction is considered additional, that is where the GHG reduction attributed to the activity would not have otherwise occurred. The reduction in incentives and removal of activities have been designed to address technological, market and regulatory changes that mean incentivising these types of lighting upgrades is becoming less additional.

To address the changing lighting market, the department consulted on changes to VEU lighting activities in 2019 and finalised its Response to Consultation in September 2020. These changes were delayed from their original commencement date to account for the disruptions that COVID-19 restrictions had on the residential lighting sector. Consistent with previous announcements, the department is implementing these changes from 1 February 2023.

Lighting activities that are removed from the VEU program will no longer be eligible for incentives. The Essential Services Commission will continue to closely monitor the behaviours of program participants and activity creations following the removal of lighting activities from the VEU program.

If you have any questions or feedback on the proposed changes to lighting activities under the VEU program, please contact the Energy Upgrades team.

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Page last updated: 30/01/23