Does the VEU Rebate Apply to New A/C Installations
or Only Replacements?
Most Victorians assume the Victorian Energy Upgrades rebate only kicks in when you’re ripping out an old system. The reality is more generous — and more nuanced — than that.
Yes — the VEU rebate does apply to brand new air conditioning installations, not just replacements. However, the size of your discount depends heavily on your situation. Replacing a gas heater with a reverse cycle system unlocks the biggest rebates, while a new A/C installation in a home with no existing system still qualifies — just for a smaller discount.
It’s one of the most common questions we get at Greentastic: “I don’t have an old system to replace — can I still get the rebate?” The good news is yes, you can. But understanding exactly how the VEU program works will help you set the right expectations and make sure you’re not leaving money on the table.
Let’s break down every scenario clearly, so you know exactly what you’ll get before you book your installation.
What Is the VEU Rebate, Exactly?
The Victorian Energy Upgrades (VEU) program is a Victorian Government initiative that reduces the upfront cost of energy-efficient appliances for households and businesses across Melbourne and all of Victoria. It works by generating Victorian Energy Efficiency Certificates (VEECs) on your behalf — certificates that have a monetary value which accredited providers pass on to you as a direct discount at the point of purchase.
You don’t apply for a rebate separately or wait for a bank transfer. The discount simply comes off your invoice when you use a VEU Experienced Provider — which is exactly what Greentastic is.
Unlike some other Victorian rebates, the VEU program has no income test and no property value cap. It’s open to virtually every Victorian household and business.
New Installation vs. Replacement: What Changes?
The VEU program values energy upgrades based on how much greenhouse gas emissions they reduce. This is calculated by comparing the new system against what it replaces. So naturally, the bigger the improvement over what was there before, the higher the rebate.
Here’s how the four main scenarios break down:
Replacing a Gas Heater
(Highest Rebate)
- Gas wall heater → split system
- Ducted gas heating → reverse cycle ducted
- Gas heater → multi-head split system
- Largest VEEC value — up to $7,000+ in lifetime savings
Replacing an Old Inefficient A/C
(Good Rebate)
- Old inefficient split system → new high-star model
- Aged ducted system → new efficient ducted
- Rebate reflects efficiency improvement
- Still a meaningful upfront discount
Brand New Installation
(Smaller, Still Applies)
- No existing system present
- First-time A/C in a home or new room
- VEU discount applies — but at a lower rate
- Can be combined with other rebates
Not Eligible
- DIY (non-accredited) installation
- Systems already installed (no back-claiming)
- Non-approved product models
- Outside Victoria
How Much Can You Actually Save?
The VEU discount varies based on what you’re upgrading from and what you’re installing. Here’s a realistic overview based on current VEEC values and typical Melbourne installations:
| Scenario | Typical VEU Discount | Annual Bill Saving | Status |
|---|---|---|---|
| Gas ducted heating → Electric reverse cycle ducted | $2,000 – $5,000+ | Up to $1,010/yr | Highest Rebate |
| Gas wall heater → Split system reverse cycle | $800 – $2,500 | Up to $370/yr | High Rebate |
| Old inefficient A/C → New high-efficiency model | $300 – $900 | $150 – $400/yr | Good Rebate |
| Brand new installation (no prior system) | $150 – $500 | Depends on use | Applies |
| Non-accredited installer used | $0 | — | Not Eligible |
Pro Tip: The Gas Replacement Opportunity
If your home has any gas wall heaters — even in just one room — switching those to reverse cycle split systems as part of the same job can dramatically boost your total VEU discount. Many Melbourne homes don’t realise they can bundle this into a single installation project.
Which Air Conditioning Systems Qualify for VEU?
Not every A/C unit on the market qualifies — systems must meet the VEU program’s energy efficiency requirements and appear on the approved product list. Broadly, here’s what gets the green light:
✅ Eligible Systems
Reverse cycle split systems (single head), multi-head (multi-split) reverse cycle systems, reverse cycle ducted systems, and high-efficiency wall-mounted units all qualify under the VEU program. The key is that they must provide both heating and cooling (reverse cycle) — cooling-only units do not attract the same VEEC value and may not qualify.
✅ Brands Commonly on the Approved List
Most of the major brands sold by licensed installers in Melbourne are eligible, including Daikin, Mitsubishi Electric, Fujitsu, Panasonic, Samsung, and LG — provided the specific model meets the required star rating and capacity thresholds. Your Greentastic installer will confirm product eligibility before quoting.
The Approved Product Register
The Essential Services Commission (ESC) maintains the official VEU approved product register. Your Greentastic consultant will check your chosen system against this register as part of the quoting process — you don’t need to research this yourself.
The Big Opportunity: Replacing Ducted Gas Heating
If your Melbourne home currently runs on ducted gas heating — very common in suburbs built between the 1970s and 2000s — you are sitting on the highest possible VEU rebate available for air conditioning upgrades.
Replacing a ducted gas system with a reverse cycle electric ducted system (or a multi-head split system that covers the whole home) attracts the maximum VEEC allocation. This is because the emission reduction compared to the old gas system is substantial, and the VEU program rewards exactly that.
On top of the VEU discount, with gas prices continuing to rise in Victoria, households replacing ducted gas with efficient reverse cycle typically save between $700 and $1,010 per year on their energy bills — every year, for the life of the system.
Victoria’s 2027 Gas Deadline
From 1 January 2027, all new Victorian homes must be fully electric. From March 2027, gas hot water systems must be upgraded to electric alternatives as they reach end-of-life. The transition away from gas is accelerating — and the rebates available now are more generous than they are likely to be as the deadline approaches. Acting sooner means larger savings.
How to Claim the VEU Rebate: Step by Step
The process through Greentastic is simple — we handle all the VEEC paperwork on your behalf:
Contact Greentastic for a Free Quote
Tell us what you’re looking to install or replace. We’ll assess your home, confirm product eligibility, and calculate the exact VEU discount that applies to your situation.
Choose Your System
We’ll recommend VEU-approved reverse cycle systems that suit your home’s size, layout, and budget. The rebate is applied directly — you’ll see the exact discounted price on your quote.
Installation Day
Our licensed electricians and refrigeration mechanics install your system to the highest standard. All work complies with Victorian electrical and refrigerant regulations.
We Handle the VEEC Paperwork
As a VEU Experienced Provider, Greentastic creates and registers your VEECs with the Essential Services Commission. You sign the assignment documentation — that’s it. The discount is already baked into your invoice.
Start Saving Immediately
Enjoy lower energy bills from day one. No waiting for a government payment — the rebate was already deducted at purchase.
Can You Stack the VEU Rebate With Other Discounts?
Yes — and this is where the real savings compound. The VEU discount on air conditioning can be combined with other rebate programs depending on your upgrade:
If you’re also upgrading to solar panels or a solar battery, the Solar Victoria rebate (up to $1,400 for solar panels) and the Federal Cheaper Home Batteries Program (approximately 30% off battery systems) can all be claimed in the same job. If you’re replacing a hot water system at the same time, the Solar Victoria hot water rebate (up to $1,400) plus federal STCs stack on top of that.
Greentastic specialises in whole-home energy upgrades across Melbourne and suburbs, so we can help you plan the most cost-effective order of upgrades and ensure every eligible rebate is claimed.
Maximum Stacking Example
A Melbourne home that replaces ducted gas heating (VEU: ~$3,000+), installs solar panels (Solar Victoria: up to $1,400 + $1,400 loan + STCs: ~$2,000), and adds a heat pump hot water system (VEU discount + Solar Victoria $1,400 + STCs: ~$3,000) can access well over $10,000 in combined rebates across a single project.
Frequently Asked Questions
Unfortunately, no. The VEU rebate must be arranged through a VEU Experienced Provider before or at the time of installation. It cannot be back-claimed on systems already installed. If you have an upcoming installation planned, book through Greentastic to ensure you don’t miss out.
Yes. The VEU program covers both residential and commercial premises across Victoria. Businesses can access discounts on eligible commercial reverse cycle air conditioning systems. Contact Greentastic to discuss your commercial requirements.
No — unlike the Solar Victoria rebate (which requires household income under $210,000), the VEU program has no income test and no property value cap. It is available to all Victorian households and businesses regardless of income.
If your home has any gas heater — a wall unit, a ducted system, a space heater in one room — you are very likely eligible for the higher gas-replacement tier of the VEU rebate. Call Greentastic on 1300 001 392 and we can confirm eligibility over the phone or during a free site assessment.
The VEU program primarily rewards reverse cycle systems (both heating and cooling) because the greenhouse gas savings over old gas heating are what generates the highest VEEC value. Cooling-only units have significantly lower VEEC allocations and may not qualify for all tiers of the rebate. We always recommend reverse cycle systems for Victorian homes as they provide far better value — for your bills and for the rebate.
A standard split system installation typically takes 3–5 hours. Multi-head installations or ducted system replacements may take 1–2 days depending on the home’s layout and complexity. Greentastic will give you a time estimate when booking.
The Bottom Line
The VEU rebate does apply to new air conditioning installations — not just replacements. Every Victorian household using a VEU Experienced Provider like Greentastic can access a discount on their installation. The key factors that determine how large your discount is are: whether you’re replacing a gas system (highest rebate), replacing an old inefficient unit (good rebate), or installing fresh with no prior system (still eligible, smaller discount).
If your Melbourne home has any gas heaters — wall units, ducted systems, even a single room heater — the opportunity to switch to reverse cycle and claim a substantial rebate is significant. And with Victoria’s gas phase-out regulations taking effect from 2027, the earlier you act, the more you save.
Greentastic is a VEU Experienced Provider serving Melbourne and suburbs. We handle all rebate paperwork, supply fully approved systems, and are with you from quote to installation to post-install support.
Find Out Exactly What Rebate
You Qualify For — For Free
Talk to a Greentastic energy upgrade specialist today. We’ll assess your home, confirm your VEU eligibility, and give you a clear, itemised quote with all rebates already applied.
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