Can You Replace Your Under-Floor/Ceiling Heating or Gas Ducting Under the VEU Program? What’s Allowed & What’s Not

As Victoria continues to move towards a cleaner and more energy-efficient future, the Victorian Energy Upgrades (VEU) Program offers households thousands of dollars in rebates when they upgrade old, inefficient heating systems to modern, energy-saving solutions.

But one question many Melbourne homeowners ask is:
“Can I replace my under-floor, ceiling heating, or gas ducted system under the VEU Program?”

The answer depends on the type of system, energy efficiency, and eligibility of products under the program’s approved activity list.

Let’s break it down.


🔍 1. What Is the VEU Program?

The Victorian Energy Upgrades (VEU) program helps households and businesses reduce energy bills and greenhouse gas emissions by providing rebates on approved energy-efficient products such as:

  • Reverse cycle air conditioners (single, multi-head, or ducted systems)
  • Heat pumps for hot water
  • LED lighting upgrades
  • Weather sealing and insulation

For heating and cooling, the VEU provides rebates when you replace an inefficient system—like gas ducted heating—with an efficient reverse cycle air conditioner that meets strict performance standards.


🏡 2. Replacing Gas Ducted Systems — Eligible Under VEU

If your home currently runs on gas ducted heating, you may qualify for a rebate of up to $8,000 when replacing it with an energy-efficient reverse cycle air conditioning system.

✅ Eligible replacements:

  • Old gas ducted heating replaced with ducted reverse cycle air conditioning
  • Gas wall furnaces replaced with reverse cycle split systems
  • Ducted gas systems replaced with multi-head air conditioning

❌ Not eligible:

  • Replacing gas with another gas system
  • Replacing only a single indoor/outdoor component without full system upgrade
  • Using non-registered or non-VEU-approved models

💡 Tip: Always ensure your installer is VEU-accredited and your chosen system is listed on the approved products register from the Essential Services Commission (ESC).


🔧 3. What About Under-Floor or Ceiling Heating Systems?

Here’s where eligibility gets tricky.

While the VEU program supports replacing inefficient heating systems, under-floor or ceiling radiant heating may not always qualify for direct rebates. These systems are typically electric-resistance based and fall outside the “gas-to-electric” conversion scope.

Possible eligibility:

  • If your under-floor or ceiling system is integrated with ducted gas heating and you’re replacing the whole system with an approved reverse cycle ducted unit
  • If the new system significantly improves energy efficiency and meets Activity 1B or 1D criteria under the VEU program

Not eligible:

  • Standalone under-floor or ceiling heating replacement without ducting
  • Partial upgrades not involving a full system replacement
  • Cooling-only air conditioners

⚙️ 4. Key Requirements to Qualify for Rebates

To receive your VEU rebate:

✔ The product must be on the VEU approved list
✔ The installer must be VEU accredited (like Greentastic Pty Ltd)
✔ The system must replace an existing, less efficient system
✔ The installation must comply with Australian Standards (AS/NZS 3823.2)
✔ The home must be located in Victoria and have proof of prior system (e.g., gas connection or unit photo)


💰 5. Rebate Value and Typical Costs

The exact rebate value depends on the system size, number of indoor units, and type of upgrade:

Upgrade TypeTypical RebateExample System
Gas ducted → Reverse cycle ducted$6,000 – $8,00012–18 kW ducted inverter
Gas wall furnace → Split system$2,000 – $4,0003.5 kW reverse cycle
Multi-head or multiple splitsUp to $8,0004 splits or more

With VEU rebates and government incentives, homeowners can save big while improving comfort and efficiency.


🌱 6. Why Choose Greentastic Pty Ltd

At Greentastic, we specialize in VEU-approved air conditioning installations and energy-efficient upgrades across Melbourne and regional Victoria.
We handle everything — from eligibility assessment and rebate paperwork to professional installation using approved products from trusted brands such as:

  • Daikin
  • Mitsubishi Electric
  • Panasonic
  • Fujitsu
  • Rinnai

We ensure your upgrade meets all compliance requirements, maximizing your rebate while guaranteeing quality and performance.


🔎 7. Check Your Eligibility Today

Wondering if your gas, ceiling, or under-floor heating system qualifies under the VEU rebate?
Contact Greentastic Pty Ltd today for a free eligibility assessment.

📞 Call: 1300 001 392
🌐 Visit: www.greentastic.com.au
💬 Get a Free Quote: Upgrade your comfort and save with verified, energy-efficient systems.


Final Thought

Not all heating systems are created equal — and not all are eligible for VEU rebates. By choosing an accredited installer like Greentastic, you ensure your replacement meets government standards, maximizes your rebate, and delivers long-term energy savings.

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