Questions about the program

The Energy Efficiency in Social Housing Program (EESHP), in partnership with the Australian Government’s Social Housing Energy Performance Initiative (SHEPI), is set to deliver home upgrades across Victoria’s social housing portfolio. These upgrades will reach 11,000 homes between June 2024 and June 2027.

In November 2024, the Australian Government announced additional funding for Victoria. This funding will support energy efficiency upgrades in an additional 8,000 public and community housing properties by June 2029.

The program aims to significantly enhance the energy performance of social housing properties, by delivering multiple upgrades in each property.

These upgrades will assist in:

• reducing energy bills for residents
• supporting better health outcomes by providing more comfortable homes
• assisting progress towards electrification.
• The Program supports renters to shift to electric appliances to either reduce or eliminate gas bills.

The Australian Government’s Social Housing Energy Performance Initiative (SHEPI) is funding upgrades to help social housing residents access the benefits of the energy transition.

The upgrades aim to reduce pressure on energy bills for social housing residents as well as help improve residents' quality of life by keeping homes warmer in winter and cooler in summer.

The Community Housing Upgrades Stream is designed to provide grant funding to Community Housing Organisations (CHOs) to undertake energy efficiency and electrification upgrades to properties in their portfolio.

The funding will support multiple home upgrades to improve thermal comfort and reduce energy bills for renters. It also helps advance electrification, in line with the broader Energy Efficiency in Social Housing Program (EESHP).

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; and
• if they can confirm that the full value (100%) of energy savings achieved by the upgrades will be passed onto renters; and
• if they 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 3 years of financial statements
• Participate in the Victorian Energy Upgrades (VEU) 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.

Yes, financial records for operations outside the State of Victoria will be accepted, however all activities relating to this grant funding must be performed within the State of Victoria.

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

• stock the provider intends to retain for 10+ years (where the property is owned by the CHO)
• houses that are detached or attached and apartment buildings less than 5 stories
• properties that are 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.

DEECA considers an individual property to be a house or unit that is detached or attached, or an apartment in a building less than 5 stories. If the house is a rooming house and can meet eligibility criteria, the maximum funding amount is for each resident’s room, and the funding can be used for upgrades to both the resident's room and shared space.

Applicants must continue to ensure that:

• other eligibility criteria related to the applicant, activities (upgrades) and property characteristics are met
• the full value (100%) of energy savings achieved by the upgrades will be passed onto renters.

The property eligibility for attached and detached houses, and apartment buildings of 5 storeys or fewer is based on practical and technical considerations.

The program has been designed with a range of upgrades that maximise improvement in energy efficiency and thermal comfort for lower density housing types.

The property eligibility ensures that the program delivers the greatest impact within available resources while maintaining feasibility and tenant safety.

Assets built prior to the introduction of the minimum NatHERS ratings in 2005 are likely to have a poorer performing thermal envelope.

Applicants can include properties built after 2005 in their applications.

The preference for older properties will be applied in the assessment stage of the grant round, especially if the applications received exceeds the funding available.

Attached or detached housing is an umbrella term used to cover more home types than just single-family houses.

These include:

• units
• townhouses
• duplexes
• triplexes
• row homes
• walk-up apartments.

The program has been designed with a range of upgrades that maximise improvement in energy efficiency and thermal comfort for these lower density housing types.

Eligible properties are four storeys or less.

Alongside detached or attached houses, these properties may be referred to as low-rise buildings or ‘walk-up’ apartments. Properties of 5 or more storeys are considered high density and are not eligible.

The number of storeys is calculated based on above ground levels.

The priority renter groups are:

• Aboriginal or Torres Strait Islander
• Elderly (aged 65 years and older)
• Larger families (dwellings with 4 or more bedrooms)
• Renter with a disability
• Young people (aged 15 – 24 years).

These priority renter groups expand on the priority renters for public housing under the broader Program, reflecting renters who may benefit the most in community housing.

Properties that do not meet this criteria will still be considered for funding but will need to provide a larger cash co-contribution amount.

The applicant needs to confirm the status of any priority renter groups at the property level. This should be based on evidence they hold, such as the number of bedrooms, age, disability status, or renter self-identification as Aboriginal and/or Torres Strait Islander

DEECA reserves the right to request evidence confirming the renter type.

In most circumstances, the benefits of the upgrades are expected to be reflected in the reduction of energy bills received by the renter.

In other circumstances, applicants are encouraged to determine an appropriate method of demonstrating benefits to renters and including this within their application.

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 following upgrades will be eligible for funding.

• 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 PV
• Gas abolishment, where full electrification has been achieved via other upgrade activities under this grant program

Each property must receive at least 2 upgrades from the eligible upgrades list above.

The upgrades must meet the Energy Efficiency in Social Housing – Community Housing Upgrades 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 community housing organisations are currently exempt from compliance with the new efficiency standards for rental homes, the government has commenced a review to determine if and when the exemption should be removed.

A reasonable level of enabling works such as switchboard or wiring upgrades are also eligible for funding.

Yes, you can use your existing contractor.

For most upgrades, the contractor will need to be an accredited provider under the Victorian Energy Upgrades program, or the contractor can work with an accredited provider.

From lessons learnt in the EESHP program, the following process has been developed when replacing gas ducted heating with efficient electric room‑based systems:

1. Install a single reverse‑cycle air conditioner (RCAC) in the main living area. This was effective in homes because occupants often primarily heat and cool the main living zone. Providing a high‑efficiency RCAC in this space met most renters’ needs while lowering energy consumption.
2. Install 2 RCACs if a single unit does not meet the renter’s heating/cooling patterns in cases where renters regularly used more than one living zone. Installing 2 RCACs aligned better with renter behaviour and energy efficiency goals.
3. Consider electric reverse cycle ducted systems only by exception. Ducted RCAC systems were used only when renters declined wall mounted RCAC units or where ducted heating was needed to maintain renter amenity (for example in certain larger or complex layouts).

Additional practical considerations include:

• Removal of gas ducted systems: Removing gas ducted heaters was beneficial because it provided safe access to ceiling spaces for insulation upgrades—another priority activity under the program.
• Focus on habitable living areas: The upgrade prioritisation focuses on common living zones such as:
  • lounge rooms
  • dining rooms
  • kitchens.

  *Bedrooms and hallways are not considered habitable living areas for the purpose of heating upgrades.

Yes, participation in the Victorian Energy Upgrades program is mandatory for all eligible upgrades.

Find out how the Victorian Energy Upgrades program helps Victorians upgrade their homes and businesses with energy-efficient products and services.

When looking at your invoice or quote from an installer, VEECs will be listed as a line item showing the cost savings. VEU requirements require invoices to itemise the VEEC amount and provide before/after pricing.

To be eligible for the VEU your invoice/proof of purchase must include the:

• date of purchase or installation
• brand and model of the installed product(s)
• number of installed products
• name and address of the energy consumer (address of where upgrade is being installed)
• name, address and ABN of the installer business
• price of each product installed (before VEEC incentive is applied)
• amount paid by the customer for each product (after VEEC incentive is applied)
• VEEC incentive amount applied (either for each product or for the upgrade).

All installers who will undertake retrofit ceiling insulation under the Victorian Energy Upgrades (VEU) program are required to be certified through the Energy Efficiency Council’s Certified Insulation Installer (CII) program. This certification ensures installers meet the necessary safety, quality, and competency standards to carry out insulation work under the scheme.

To support this requirement, the Victorian Government is funding the Retrofit Insulation Installation Training Program, which provides fully funded training for eligible workers. This training includes core units such as working safely at heights, applying construction industry WHS requirements, carrying out measurements and calculations, and installing bulk insulation and pliable membrane products. Completion of these units enables installers to apply for CII certification.

The Victorian Government is currently finalising the regulations required to introduce ceiling insulation as an activity under the VEU program. This work is underway to ensure the activity can be made available to align with the staged rollout supported by the Retrofit Insulation Installers Training Program.

The first round of the Community Housing Upgrades Stream makes available funding of up to $9 million.

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

This program is expected to run 2 additional funding rounds in 2026. These future rounds are dependent on the Victorian and Australian Governments entering into a funding agreement to secure additional funding.

As these are competitive grant rounds not every application will be successful. Unsuccessful applicants will receive an opportunity to be given feedback on their application and are welcome to try again for subsequent funding rounds.

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 80 properties, DEECA may award funding for 50 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.

Yes, in most cases a cash co-contribution is required. The amount depends on the type of property and renter:

• no co-contribution is required for Aboriginal housing providers or properties with Aboriginal and/or Torres Strait Islander renters
• 5% co-contribution is required for properties with priority renters, for example, elderly, young people, renters with a disability, or homes with 4 or more bedrooms)
• 20% co-contribution is required for all other properties, including vacant properties.

These are minimum amounts. If the total project cost (after rebates) is higher than the maximum grant of $18,000 per property, the applicant must also pay the gap above the grant cap.

Rebates and in-kind support cannot be counted toward the cash co-contribution.

Funding from other Victorian Government grants and savings from rebates cannot be used by the applicant as the co-contribution.

Yes, you can include multiple properties in a single application.

The co‑contribution is calculated for each property individually based on its renter group and project cost after rebates.

The grant amount is also calculated per property, up to a maximum of $18,000 per property.

Scenario 1, Vacant property: The upgrade for one vacant property costs $20,000. After $1,500 in rebates, the project cost after rebates is $18,500.

• Co-contribution rate: 20% (same as for properties that do not meet priority renter criteria, unless the property is only eligible for one of the priority groups, for example Aboriginal or Torres Strait Islander renters).
• Calculation:
  • Co-contribution amount is 20% of $18,500 = $3,700
  • The grant can cover up to $18,000 per property, $18,500 − $3,700 = $14,800.
  • Since the remaining cost after co-contribution is less than $18,000, the grant is $14,800.
  • Applicant pays $3,700 co‑contribution.
• Outcome:
  • Grant amount is $14,800 ($18,500 − $3,700)
  • Applicant contribution = $3,700 total (made up of $3,700 co‑contribution).

Scenario 1, Co-contribution for a vacant property: example scenario

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

Note: maximum grant amount is $18,000 per property. The applicant funds the project costs above the grant amount.

Scenario 2, Multiple properties: An organisation applies for upgrades to 3 properties in a single application. The renter groups and costs are shown in the table below:

Aboriginal and Torres Strait Islander renters

• Renter group 1
• Co-contribution rate 0%
• Project cost before rebates $19,500
• Rebates $1,500
• Project cost after rebates $18,000
• Co-contribution $0
• Grant $18,000

Priority renters

• Renter group 1
• Co-contribution rate 5%
• Project cost before rebates $19,500
• Rebates $1,500
• Project cost after rebates $18,000
• Co-contribution $900
• Grant $17,100

Other renters

• Renter group 1
• Co-contribution rate 20%
• Project cost before rebates $19,500
• Rebates $1,500
• Project cost after rebates $18,000
• Co-contribution $3,600
• Grant $14,400

Totals

• Project cost before rebates $58,500
• Project cost after rebates $54,000
• Co-contribution $4,500
• Grant $49,500

How the totals work:

• Total project cost after rebates ($18,000 + $18,000 + $18,000) = $54,000
• Total co‑contribution ($0 + $900 + $3,600) = $4,500
• Total grant amount ($18,000 + $17,100 + $14,400) = $49,500

Please note that:

• The Aboriginal renter property requires no co‑contribution in this scenario because the project cost after rebates equals the grant cap of $18,000. In other scenarios where the project cost after rebates exceeds the grant cap, the organisation pays the amount above the grant cap.
• Priority renter properties, elderly aged 65 years and over, and renters with a disability) require 5% co‑contribution based on the cost after rebates.
• Rebates reduce the project cost but cannot be counted toward the cash co‑contribution.
• In‑kind support, for example staff time can be acknowledged but do not count toward the cash co‑contribution.

Scenario 3, Priority renter with a high project cost. The upgrade for one property costs $22,000. After $1,500 in rebates, the project cost after rebates is $20,500. The renter meets a priority criterion, for example elderly aged 65+.

• Co‑contribution rate: 5%.
• Calculation:
  • Co‑contribution = 5% of $20,500 = $1,025
  • The grant can cover up to $18,000 per property, $20,500 − $1,025 = $19,475. Since the remaining cost after co-contribution is more than $18,000, there is a $1,475 gap above grant cap.
  • Applicant pays $1,025 co‑contribution plus the $1,475 gap.
• Outcome:
  • Grant = $18,000
• Applicant contribution = $2,500 total (made up of $1,025 co-contribution + $1,475 gap).
• Number of properties 1
• Co-contribution rate 5%
• Project cost before rebates $22,000
• Rebates or energy certificates $1,500
• Project cost after rebates $20,500
• Co-contribution $2,500
• Grant $18,000

Note: maximum grant amount is $18,000 per property. The applicant funds the project costs above the grant amount

Scenario 3, Co-contribution with a priority renter and a high project cost home: example scenario

• Number of properties 1
• Co-contribution rate 5%
• Project cost before rebates $22,000
• Rebates or energy certificates $1,500
• Project cost after rebates $20,500
• Co-contribution $2,500
• Grant $18,000

Note: maximum grant amount is $18,000 per property. The applicant funds the project costs above the grant amount

An in-kind contribution is a contribution of a good or a service other than money.

Some examples include:

• voluntary labour, for example, painting work
• donated goods, for example, kitchen equipment
• donated services, for example, professional advice from an architect.

Further advice on in-kind contributions can be found on the Victorian Governments Grants - understanding in-kind contributions page.

No. The grant is only to fund selected upgrade works and ongoing funding beyond that will not be provided.

Yes. View the funding agreement can be found at our Energy Efficiency in Social Housing Program page.

Applicants must familiarise themselves with the terms and conditions of the funding agreement. Acceptance of these terms is a mandatory part of the application process.

Any proposed departures from the terms must be submitted at the application stage for consideration.

No. Successfully funded projects will be offered funding as a GST exclusive amount. However, for organisations with an ABN and who are GST registered, payment will be made GST inclusive.

Successful applicants without an ABN will need to provide a completed Australian Taxation Office form ‘Statement by a Supplier’ so that no withholding tax is required from the grant payment.

The Victorian Government is committed to improving opportunities for local suppliers to create more new jobs and grow the economy.

Local Jobs First (LJF) applies where the value of the grant or loan meets the LJF thresholds of $1 million and above in regional Victoria or $3 million and above in metropolitan Melbourne or for State-wide projects.

If LJF does apply to your grant application, your application will be assessed against the LJF part of the project delivery section of the assessment criteria, which forms 30% of the overall assessment criteria, and will form part of the Funding Agreement.

Visit the Local Jobs First how to get involved page for more information.

No. EESHP is a Victorian Government initiative that is co-funded by the Australian Government’s SHEPI program.

SHEPI funds similar initiatives across all Australian States and Territories.

Visit the Social housing energy performance page to find your State’s or Territory’s social housing initiative.

Applications are to be submitted via the GEMS application portal available on the EESHP Community Housing Grant page.

Yes. When you open a new application via the GEMS Portal, click ‘View as PDF’ (bottom of page) which will display the entire application form as a PDF. You can download, print and share this form as needed.

You can also save and review any part of your application form at any time before submission.

If you would like assistance navigating the application portal, please email grantsinfo@deeca.vic.gov.au and quote your application number.

Generally, a letter of support should confirm that the project partner/contractor supports the project and includes details such as:

• Introduction of the partner organisation including its mission, relevance to the project and connection to the applicant
• Role and responsibility the partner will play in the project and their level of involvement in the project scope
• Previous collaborations, if applicable, noting any highlights and successful outcomes
• Commitment statement of readiness to engage and actively contribute throughout the project’s duration and where applicable beyond the completion of the project
• Contact Information for a representative that can be contacted for further information

Future rounds are expected to have similar eligibility criteria and priorities; however, DEECA is committed to learning from Round 1. If something isn’t working as intended, DEECA may adjust the criteria or priorities for future rounds to ensure the program delivers the best outcomes.

Funding will be processed in line with the terms outlined in the Funding Agreement. This document provides clear details on payment timing and structure. All applicants are encouraged to review the template carefully to understand how funds will be allocated.

Applicants are expected to provide the quoted costs for each upgrade in the ‘Properties & Upgrades’ tab, and provide further detail of those costs in the ‘Budget template’ tab.

The more detailed costs, such as upgrade installation and commissioning, or site preparation for upgrade works is expected to be provided on an itemised quote from a contractor/tradesperson.