1 April 2026
Space heating and cooling review survey open, ceiling insulation launch, induction cooktops and home energy rating assessment updates
Space heating and cooling review survey open now
The Department of Energy, Environment and Climate Action (the department) is reviewing the space heating and cooling activity (Part 6) to ensure it remains fit-for-purpose, delivers benefits for homes and businesses that undertake upgrades and to expand upgrade opportunities.
To support this review, the department has published a space heating and cooling survey to seek stakeholder feedback and direction on how the Victorian Energy Upgrades (VEU) program can better support the transition to efficient electric heating and cooling and improvement opportunities for the current Part 6 activity.
The survey and supporting survey paper can be found on the Space heating and cooling Engage Victoria page.
The department will use feedback obtained from survey responses to inform proposed changes to the activity that will be consulted on later in 2026.
The consultation closes 11:59 PM Wednesday 29 April 2026.
Important information - changes proposed for multi-split reverse-cycle air conditioners
The department has received feedback from industry and customers that multi-split reverse-cycle air conditioners (RCAC) are being over-sized to maximise VEU incentives. This means incentives awarded may not reflect the emissions savings achieved by an upgrade, potentially undermining the objectives of the VEU program. Analysis from the department has found evidence to support the concerns raised by industry and customers.
The department proposes the following actions to respond to this issue:
- Cap incentives for multi-split RCACs at 17 kilowatts (kW) heating/cooling capacity (multi-split RCAC products with a higher capacity can be installed but are not awarded incentives beyond 17 kW).
- Increase minimum co-payments for multi-split and ducted RCAC installations to $3,000.
The department would like to thank all stakeholders that have provided information to support the integrity and effectiveness of the VEU program. The department will not hesitate to consider further actions to mitigate against poor sizing practices and will continue to closely monitor VEU space heating and cooling installations. More information on department analysis for this issue can be found in the heating and cooling survey paper.
Stakeholders can provide feedback on proposed changes to multi-split RCACs and how the VEU program can improve sizing practices by completing the space heating and cooling survey.
New ceiling insulation activity to launch
The VEU program is launching a new ceiling insulation activity to reduce household energy bills and emissions.
From 14 April 2026, the activity will begin with a targeted rollout to public and community housing through the Energy Efficiency in Social Housing Program (EESHP).
From 1 October 2026, it will expand to all eligible Victorian homes with no or low ceiling insulation. Upgrades can deliver average energy bill savings of around $418 per year, up to $887 in avoided health costs, and cut emissions by approximately 0.9 tonnes per household.
The staged rollout is supported by a new Quality, Risk and Safety Framework that has been developed in collaboration with Solar Victoria, Essential Services Commission, WorkSafe Victoria and Energy Safe Victoria. This ensures oversight of quality and safety for upgrades under the program, supports insulation industry safe working practices, and consumer protections.
Fully subsidised training and certification will continue for insulation installers, helping ensure upgrades are delivered safely and to a high standard.
For information, visit the VEU insulation discounts webpage.
Induction cooktop evaluation response to consultation released
The department has released its response to consultation on the evaluation of the induction cooktop activity (Part 46). The department would like to sincerely thank everyone who took the time to make a submission or meet with us. Your feedback is appreciated.
The response to consultation, now available on Engage Victoria, details the key decisions proposed in response to stakeholder feedback.
A summary of the proposed decisions include:
- To continue the induction cooktop activity in the VEU program.
- To remove the requirement for products to be approved on the Secretary’s product list.
- To remove the evidentiary requirement for customers to provide a recent gas bill / LPG invoice.
- To retain the:
- limit of one induction cooktop product per residential premises (that is at least two years old)
- point-of-sale approach
- $200 minimum co-payment
- current scope and requirements for eligible products
- current level of VEEC incentive
- requirement for the induction cooktop factsheet to be provided to the customer before Victorian Energy Efficiency Certificates (VEECs) are created for the induction cooktop activity. The factsheet will be revised to reflect changes that come into effect for the activity.
Important information on the Home Energy Rating Assessment (HERA) activity
The VEU HERA activity (Part 45) currently uses the Residential Scorecard tool as the sole eligible method to create VEECs. Assessors and relevant stakeholders will be aware that the Scorecard tool will be closing on 23 June 2026. Further information on the closure of the Scorecard tool can be found here – Scorecard to NatHERS for existing homes transition.
The VEU program intends to undertake a review of the HERA method in Q4 2026 (see also the VEU public workplan) to assess if there are other viable tools to enable VEEC creation for the activity. Updates on this process will be provided in due course.
Stakeholders are advised not to make any decisions related to any of these activities under the VEU program until final Regulations and Specifications have been approved and published.
Page last updated: 23/04/26