Energy Efficiency in Social Housing Program

Public housing upgrades are being delivered in partnership with Homes Victoria. Properties are identified by Homes Victoria, and residents do not need to apply.

The program offers participation directly to eligible households as part of the upgrade rollout.

For more information on the Victorian Government’s Energy Efficiency in Social Housing Program Public Housing stream, visit Homes Victoria's Energy Efficiency in Social Housing Program.

Delivered by DEECA, the Community Housing Upgrades Stream provides grant funding to community housing organisations (CHOs) to deliver energy efficiency upgrades to eligible community housing properties.

This stream supports community housing organisations to plan and implement upgrades that improve the performance, comfort and sustainability of their housing portfolios. Residents of community housing cannot apply for this grant.

The following organisations can apply for funding:

A not-for-profit organisation that provides affordable rental housing to low-income households if it:

• is a Registered Community Housing Organisation (or Community Housing Provider) listed on the Housing Registrar Public Register as a community housing association or provider;

OR

• is registered with the Australian Charities and Not-for-Profits Commission;
• can demonstrate that the provision of affordable housing is one of the organisation’s core activities; and
• can demonstrate that renters meet income and asset limits.

OR

• Is an Aboriginal Trust managed by a Committee of Management

AND

• confirms that the full value (100%) of energy savings achieved by the upgrades will be passed onto renters; AND
• can confirm they are the legal owner or manager of the property and has the right to carry out the project in agreement with the owner(s) of the property.

In addition, to be eligible for funding applicants must:

• be an incorporated body, cooperative or association (including business associations).
• be financially solvent and able to provide three years of financial statements.
• participate in the Victorian Energy Upgrades program for all eligible activities.
• participate in the Small-scale Renewable Energy Scheme, to claim small-scale technology certificates (STCs) for heat pump hot water and solar installation.

Who cannot apply?

The following organisations and individuals cannot apply for funding:

• individuals
• public service bodies and public sector bodies
• educational institutions
• local government authorities.

Properties eligible for funding will be required to meet the following asset characteristics:

• housing stock that the provider intends to retain for 10+ years (where property is owned by the provider)
• houses that are detached, or attached and apartment buildings less than 5 stories
• Housed aged pre-2005 are preferred.

Properties with shared services (such as those in Rooming Houses) are eligible for funding under these guidelines where they can demonstrate applicant eligibility, including that the full value (100%) of energy savings achieved by the upgrades will be passed onto renters.

The Community Housing Upgrades Stream will provide up to an average $18,000 (excluding GST) per property to enable the following upgrades:

• Reverse cycle air conditioners (to provide heating and cooling)
• Draught proofing
• Ceiling insulation
• Electric cooktops (including induction)
• Hot water heat pumps
• Water efficient showerheads, if combined with a hot water heat pump
• Solar rooftop photovoltaic (PV)
• Gas abolishment, where full electrification has been achieved via other upgrade activities under this grant program.

It is strongly preferred that all hot water service installations are accompanied by the installation of a water‑efficient showerhead where an existing fixture is inefficient. This supports optimal energy and water savings outcomes and helps ensure system performance and adequate hot water availability.

The average grant of $18,000 (excluding GST) per property applies for a grant application with multiple properties and can be applied across a CHO’s property portfolio.

Each property must receive at least two upgrades from the eligible upgrades list above.

The upgrades must meet the Energy Efficiency in Social Housing – Community Housing Stream: Upgrades Guidelines, which are consistent with expanded minimum energy efficiency standards for rental properties, which come into effect in phases from 1 March 2027.

While CHOs are currently exempt from compliance with these new standards, the government has commenced a review to determine if and when the exemption should be removed.

You can also apply for a reasonable level of enabling activities. This might include funding for switchboard upgrades where required.

The Community Housing Stream will not fund the following activities:

• the purchase of land
• routine or ongoing maintenance activities
• activities that have already started
• where duplicate services are in operation or planned for in a targeted community

recurrent operating costs, for example rent and utility costs, and/or activities establishing expectations of ongoing funding

installation of gas appliances

energy audits, feasibility studies or business case reports

staff costs related to the delivery of the program (including administration and project management costs)

activities located outside the State of Victoria.

Applicants must provide a cash co-contribution in line with the requirements set out below:

• No co-contribution required for Aboriginal Housing providers or Aboriginal and/or Torres Strait Islander renters.
• 5% co-contribution for upgrades to properties that meet target renter criteria of:
  • Elderly (aged 65 years and older)
  • Larger families (dwellings with four or more bedrooms)
  • Renters with a disability
  • Young people (aged 15 – 24 years)
• 20% co-contribution required for upgrades to properties that do not meet target renter criteria.

These are the minimum co-contribution amounts. The applicant funds any gap in project costs above the maximum grant of $18,000 per property and the minimum co-contribution. The co-contribution rate is a percentage of the total cost per property after excluding rebates.

For example, if the project cost for a property with a priority renter (other than an Aboriginal renter) is $18,500 after rebates have been applied, the applicant is eligible for a $17,575 grant and contributes $925. See Table 1 below for further examples.

Table 1. Co-contribution and maximum grant amount by target renter group – example scenario

Renter group: Aboriginal and Torres Strait Islander renters

• Number of properties: 1
• Co-contribution rate: 0 %
• Project cost: $20,000
• Rebates: $1,500
• Project cost after rebates: $18,500
• Co-contribution: $500
• Grant: $18,000

Renter group: Priority renters

• Number of properties: 1
• Co-contribution rate: 5%
• Project cost: $20,000
• Rebates: $1,500
• Project cost after rebates: $18,500
• Co-contribution: $925
• Grant: $17,575

Renter group: Other renters

• Number of properties: 1
• Co-contribution rate: 20%
• Project cost: $20,000
• Rebates: $1,500
• Project cost after rebates: $18,500
• Co-contribution: $3,700
• Grant: $14,800

Note: Savings from rebates cannot be used by the applicant as the co-contribution. In-kind support and other government grant funds cannot be included as part of this cash co-contribution. Any contribution of a good or service other than money (for example, staff time or donated items) can be acknowledged in your application but must be reported separately from the cash co-contribution amount.

The applicant must attest to the status of any of the priority renter groups at the property level, based on evidence they hold of number of bedrooms of the home, age, disability status or renter self-identification of Aboriginal and/or Torres Strait Islander status. DEECA reserves the right to request evidence confirming the renter type.

Funding may be allocated to CHOs depending:

• on the number of applications received
• the proposed number of properties to be upgraded
• the proposed cost of the upgrades.

DEECA reserves the right to partially fund applications to ensure geographic and renter diversity across the program.

For example, if your application seeks funding to upgrade 20 properties, DEECA may award funding for 15 properties. DEECA will seek further information from applicants in any instances where partial funding is recommended to confirm any changes to project budget and scope.

For the first round of funding, we stipulated for CHOs to procure work to upgrade houses directly from a contractor.

The Victorian Government has engaged a head contractor to support the delivery of upgrades in public housing under EESHP.

For Round 2 onwards, applicants for the Community Housing Upgrades Stream can nominate to:

• use the head contractor appointed by the Victorian Government, or
• procure the work directly.

Applicants may choose to use the Victorian Government–appointed Head Contractor or may engage their own contractor; use of the Head Contractor is optional.

Please refer to the Application guidelines above for further details on delivery options.

After you submit your application, you will receive an application number. Please quote this number in all communications with us about your application.

We will notify you about your application in writing following the assessment process:

• all decisions are final and are not subject to further review
• unsuccessful applicants can ask for feedback on their application.

Please submit the following documents with your application:

Formats for required documents:

• Supporting documents must be in an acceptable file type, such as Word, Excel, PDF, or JPEG.
• The largest file size for each file is 10 MB.

If you have documents you cannot attach to your online application:

• For documents you cannot attach, email grantsinfo@deeca.vic.gov.au. You will need to quote your application number.
• Attach all documents to one email. Please zip your files if required.

Note: we do not accept hard copy applications.

Alignment with the intended outcomes of the Energy Efficiency in Social Housing Program

Weighting: 40%

Requirements:

Applicants must describe how the project will contribute to the intended outcomes of the program including, the Program’s primary and secondary objectives outlined below.

The Program’s primary objectives are to:

• reduce energy bills of social housing renters, including gas bills by supporting fuel shifting to electric appliances
• improve thermal comfort of dwellings and associated health and wellbeing benefits
• improve household resilience to climate change
• reduce greenhouse gas emissions.

The Program’s secondary objectives are to:

• build capability and support jobs in the energy efficiency, building trades and equipment supply sectors
• gain greater understanding of social housing energy efficiency baseline and post-upgrade energy performance
• contribute to the development of specifications and knowledge to inform future social housing upgrades and procurement approaches
• gain greater understanding of health and wellbeing impacts of energy efficiency upgrades.

Applicants must describe how the project will deliver benefits to renters, including priority renters. Priority renters are defined as:

• Aboriginal or Torres Strait Islander
• Elderly (aged 65 years and older)
• Larger families (dwellings with four or more bedrooms)
• Renters with a disability
• Young people (aged 15 – 24 years).

Project delivery

Weighting: 30%

Requirements:

Applicants must describe the project design and deliverables including provision of a detailed Project Plan containing:

• summary of the project, including description of existing properties, their condition and existing equipment (e.g. heating and cooling, insulation, hot water and cooking)
• location of proposed properties to be upgraded
• proposed delivery approach
• project schedule outlining key milestones, delivery dates and dependencies
• ownership of the property proposed to be upgraded
• Renter engagement plan, with reference to the EESHP communication and engagement objectives outlined in section 5.3
• outline of key risks and approach to management and mitigation, including completed project risk register
• project reporting and knowledge sharing outcomes that may support the secondary objectives of EESHP
• project budget using DEECA’s Budget template, including cash co-contributions
• evidence to support budget estimates (optional, with quotes and assessments to be submitted during the life of the agreement)
• outline of the source of funds required for the project, including contributions secured from your organisation or other project partners
• approach to managing potential cost overruns
• approach to using local content and suppliers and how your project aligns with the principles of the Local Jobs First Policy (s4) and the Victorian Social Procurement Framework, including:
  • suppliers in Victoria
  • manufacturers in Australia
  • other businesses and organisations based and operating in Victoria (such as installation trades)
  • any purchasing, supplies or services from Aboriginal businesses and Traditional Owners Corporations.

Applicant capability and capacity

Weighting: 30%

Requirements:

Applicants must provide details of the capability and capacity of your organisation and relevant partners to deliver energy efficiency upgrades

Applicants are required to:

• list key project partners and the proposed roles and responsibilities during the project of both the Applicant and the project partners (such as the applicants’ own contractors or optional Head Contractor).
• provide details of prior experience project managing asset upgrades, including energy efficiency upgrades and accessing rebate schemes such as Victorian Energy Upgrades
• provide details of the full-time equivalent (FTE) allocated to the project.
• describe the skills and experience of individual personnel and project partners
• provide letter(s) of support from project partners, including Aboriginal businesses and Traditional Owners where appropriate.

Value for money

Weighting: Non-weighted Criteria

Requirements:

A Value for Money assessment will be made following the eligibility check and weighted criteria assessment.

The Value for Money assessment will compare the total weighted score of the assessment criteria with the expected costs to deliver the project activities and expected benefits to renter.

The applications that provide the best balance of these factors will represent the best Value for Money and will be selected for grant funding. The best balance of these factors will be determined by DEECA, at their sole and absolute discretion.

Round 1 of the Community Housing Upgrades Stream is now closed. The funded projects that will be delivered through this round are listed below.

Vincent Care Community Housing

• Number of properties upgraded: 33
• Grant funding: $406,153

Each Housing Ltd

• Number of properties upgraded: 32
• Grant funding: $413,795

Rural Housing Network Limited (t/a Beyond Housing)

• Number of properties: 40
• Grant funding: $593,901

Unison Housing Limited

• Number of properties: 512
• Grant funding: $3,529,404

Launch Housing Limited

• Number of properties: 31
• Grant funding: $452,877

Housing First Ltd

• Number of properties: 142
• Grant funding: $2,204,208

YWCA Housing

• Number of properties: 4
• Grant Funding: $37,780

Community Housing (Victoria) Limited

• Number of properties: 123
• Grant Funding:$1,633,452