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Project-based activities refer to upgrades tailored for a particular site. They involve measuring energy consumption before and after an upgrade with the incentive level based on the measured energy savings achieved at that site.

There are 2 project-based activity methods:

  1. Measurement and Verification (M&V) method. Energy savings are determined using before and after measurements of actual energy consumption.
  2. Benchmark rating method. Energy savings are determined using before and after National Australian Built Environment Rating System (NABERS) ratings.

Measurement and Verification method

The Measurement and Verification method is a flexible way to access incentives and offset the cost of energy upgrades.

It allows businesses and non-residential premises to claim incentives by calculating the energy saved from a specific upgrade using industry-standard measurement and verification techniques.

Undertaking M&V upgrades

Organisations or persons wishing to become accredited persons for the M&V method should refer to the ESC’s website.

A new version of the specifications for the M&V method

From the end of the day on 20 June 2025, a new version of the specifications for the M&V method under VEU commenced.

This new version of the specifications introduces:

  • Five new methods under M&V with simplified methods to calculate greenhouse gas emissions reductions, including:
  1. Electrification direct measurement
  2. Direct measurement of solar PV
  3. Retrofit isolation for non-seasonal motors and rotating equipment
  4. Weather normalised whole of site electricity measurement
  5. Weather normalised whole of site gas measurement
  • Streamlining of the existing M&V method.

Measurement and Verification specifications

M&V projects affected by COVID-19 or any other declared State of Emergency or State of Disaster

On 30 June 2021, DELWP introduced a set of provisions to be applied when calculating emissions abatement for VEU program M&V projects that have been affected by COVID-19 or any other declared State of Emergency or State of Disaster.

The Victorian Energy Upgrades program removes the ban on Measurement & Verification (M&V) projects exporting renewable energy. Here is what you need to know.

Historical versions of the M&V specifications

M&V training manual and workbook

The department has developed guidance material for stakeholders interested in understanding the practical implementation of the M&V method.

Note: These resources are intended as guidance material only and are not a substitute for the regulatory and compliance systems of the Victorian Energy Upgrades program managed by the Essential Services Commission (ESC). For more information on the administrative, visit ESC.

The workbook has been published as a beta, making it suitable for user testing and to support reading the manual. It is provided for information purposes only. No warranty is made in respect of the material, including (but not limited to) the accuracy or currency of the material at any time or its suitability for other purposes.

Measurement and verification method on the ESC website.

Calculating Savings using Measurement and Verification. This non-mandatory manual introduces key concepts to apply the M&V method in the Victorian Energy Upgrades program.

Measurement and Verification Workbook (Beta). This workbook calculates greenhouse gas savings for Victorian Energy Upgrades projects using the M&V method.

Benchmark rating method

A benchmark rating is a measure of the energy performance of a building compared with that of other buildings of a similar size and usage, for example, a NABERS rating.

Incentives are based on energy savings measured using before and after a benchmark rating.

The incentives are available for upgrades at the following types of buildings:

  • common areas of apartment buildings
  • data centres
  • hospitals
  • hotels
  • offices
  • shopping centres
  • aged care
  • warehouses and cold stores
  • schools.

A new version of the specifications for the Benchmark rating method

From the end of the day on 20 June 2025, a new version of the specifications for the Benchmark Rating method under VEU commenced.

This new version of the specifications introduces:

  • Forward creation of certificates for up to 10 years
  • Expansion of the type of premises that are eligible to participate in the method
  • Revisions of requirements to align with NABERS processes.

Historical versions of the Benchmark rating method specifications

Page last updated: 20/06/25