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Almost 60% of Victorian homes have no ceiling insulation or are under-insulated. Upgrading ceiling insulation can save households more than $400 a year on energy bills while helping homes stay warmer in winter and cooler in summer.
The ceiling insulation activity includes strict safety and quality requirements to ensure insulation is installed safely and effectively. It is supported by industry training to grow a skilled workforce and maintain high installation standards.
The Victorian Energy Upgrades ceiling insulation discount is expected to reduce installation costs by around 30 to 50%, with discounts of up to $1,500 in metropolitan Melbourne and $2,100 in regional Victoria.
Eligibility
The ceiling insulation discount is available to all eligible Victorian homes with uninsulated or under-insulated ceiling spaces. Your installer can confirm if your home is eligible.
Public and community housing dwellings are also eligible for discounts through upgrades underway in the Energy Efficiency in Social Housing Program.
Two types of upgrades are available for a ceiling insulation discount:
- uninsulated ceiling spaces – where no insulation is currently installed
- under-insulated ceiling spaces – where existing insulation is below R2.0. As a guide, this is typically insulation that is around 90 mm thick or lower than a standard ceiling joist.
Homes with lighting or wiring that create a safety risk - such as halogen downlights or unsafe electrical cabling - are ineligible for a discount until any hazards are fixed.
Before installation can begin:
- a licensed electrician employed by a registered electrical contractor must complete an electrical safety assessment
- the insulation installer must complete a safety assessment.
These may be at a customer's own expense or included in the installation quote.
How to get a discount
Upgrading ceiling insulation can deliver immediate comfort and energy bill savings. To access a Victorian Energy Upgrades (VEU) discount, contact an accredited provider from the list on this page.
The accredited provider manages the discount process and will either carry out the installation or engage a certified insulation installer on your behalf. All insulation upgrades under this activity must be installed by a suitably trained and certified installer.
The accredited provider will also confirm that the products being installed are approved under the VEU program.
The accredited provider (or their installer) will:
- confirm your home is eligible for the discount
- assess the existing insulation and installation requirements
- provide a quote that includes the discount
- arrange and complete the installation
- handle the required paperwork and provide any relevant documentation.
If you would prefer to use your own installer, you should check they are certified by the Energy Efficiency Council and are working with an accredited provider under appropriate contractual arrangements so that you can receive the VEU discount.
The accredited provider must apply the discount before any work starts.
How much discount to expect
This VEU discount is expected to reduce the average ceiling insulation installation cost by approximately 30 to 50%.
This can vary depending on certificate prices and market conditions. The final installed price of the insulation upgrade, which includes the discount, is up to the accredited provider and will depend on several factors, including:
- size of the insulation installation/size of the home
- certificate price (which can fluctuate)
- location
- installation costs
- the accredited provider’s administrative costs.
An average (150 m2) size house in metropolitan Melbourne (mild climate zone) could expect an approximate incentive of up to $1,500.
An average (150 m2) size house in regional Victoria (cold climate zone) could expect an approximate incentive of up to $2,100.
Under the VEU program, ceiling insulation has a minimum customer contribution of $200 (incl. GST). This means that after installation costs, the minimum that customers must pay is $200.
Choosing the right product
Products approved for this activity meet strict product standards to ensure safety and performance.
All products installed through the program are listed on the Essential Services Commission's Public Registry. A range of eligible products is available, including Australian-made options. Your installer can help you choose the product that is most suitable for your home.
For more information on eligible products and requirements, see the ceiling insulation requirements for industry.
Find an accredited provider
Only accredited providers can apply for the discount. They manage the installation and oversee the process. Accredited providers will be added to this list progressively.
| Provider | Phone |
|---|---|
| Home Insulation Victoria | 0416 252 406 |
Note: Home Insulation Victoria offers insulation services across Victoria.
Minimum energy efficiency standards
New electrification and energy efficiency requirements for residential buildings will begin from early 2027.
From 1 March 2027, at the start of a new lease, rental homes must have ceiling insulation installed in any parts of the ceiling where no insulation is present. The insulation must meet an R5.0 rating and be installed by a suitably qualified professional. If insulation is already installed, rental providers do not need to add more to reach an R5.0 rating.
Program discounts can help rental providers upgrade to energy-efficient products and prepare for the changes. Find out what the changes mean for your home: New electrification and efficiency standards and regulations.
For more information on how to comply with new requirements, visit New minimum energy efficiency standards on the Consumer Affairs Victoria website.
Requirements for industry
Accredited providers and installers delivering ceiling insulation upgrades can find support on the ceiling insulation requirements for industry page.
Health, safety and cost-of-living benefits to Victorians
Discover how ceiling insulation can reduce energy bills, improve home comfort and health, and support safe, high-quality installations across Victoria.
Page last updated: 02/10/26