Ceiling insulation: A simple way to cut costs
Upgrading insulation in your home can feel daunting, and cost is often the biggest barrier. But did you know discounts are available through the VEU program?
How much can you save?
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 discount could lower the total cost by around 30–50%. The overall price will vary depending on your home, installer and other factors including:
- the size of your home and roof space
- your location
- installation costs
- current certificate pricing (which can change over time)
- your provider’s service and admin costs.
This means it’s worth getting a few quotes to compare.
What could the upgrade cost?
With the VEU discount, your out-of-pocket cost may be significantly lower.
There is also a minimum customer contribution of $200 (including GST), meaning this is the least you’ll pay after the discount.
Extra costs to be aware of
Some homes may need additional work before insulation can be installed safely.
For example:
- old halogen downlights may need to be replaced
- unsafe wiring may need to be fixed
- existing ceiling insulation may need to be removed.
All insulation upgrades must be installed by a suitably trained and certified installer. The cost of any required lighting upgrades will vary depending on the number of lights being replaced and the work needed to bring the installation up to safety standards.
Upgrading to safe, compliant lighting can:
- save money on energy bills
- improve insulation performance by reducing gaps in the ceiling.
How much discount can you get?
The level of support depends on where you live.
For an average 150 m² home in a mild climate like Melbourne, discounts of up to $1,500 may be available.
Households in colder regional Victorian climate zones could receive discounts of up to $2,100. Colder areas receive more support because insulation delivers greater benefits there.
Safety and quality assurance
Ceiling insulation should never be installed as a DIY project. Working in ceiling spaces or on roofs can expose people to a range of hazards including electrical wiring, extreme temperatures, confined spaces and working at height.
Safety is the top priority for the VEU ceiling insulation activity. That’s why every installation must undergo mandatory electrical and insulation safety checks before work begins to help ensure the home is safe and suitable for the upgrade.
Only installers certified by the Energy Efficiency Council (EEC) can carry out VEU insulation upgrades. These installers must meet strict training and competency requirements, with audits and inspections helping to ensure each installation meets Australian standards.
Choosing the right insulation product
The VEU program requires approved products and qualified installers, helping ensure safe, high-quality insulation upgrades. VEU-approved products must meet strict safety and performance standards, with a range of eligible options available, including Australian-made products. Your installer can help you choose the best fit for your home.
All approved products are listed on the Essential Services Commission's Public Registry. For more information, see the insulation requirements for industry page.
How ceiling insulation works with other VEU products
For households, the VEU helps make practical upgrades more affordable - so people can cut energy bills without taking on the full upfront cost.
Your home upgrades can work together to boost your comfort and savings. By improving insulation first, you can install a smaller more efficient heating and cooling system.
Then if you add solar for example, you could cover that reduced energy load without oversizing your appliances or panels.
These decisions can have an impact on you and your family's comfort and running costs for years after the renovation is finished.
*Costs are indicative at time of publication and will vary from household to household.
How to get a discount
Choose an accredited provider on the Essential Services Commission register approved for ceiling insulation (activity 48). 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 may complete the installation themselves or work with a partner installer.
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 choose your own installer, they must work with an accredited provider for you to receive the VEU discount.
Page last updated: 01/10/26