Renewable Energy

Ducted vs Split vs Multi-Split: What’s Best Under VEU? 

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Are you a homeowner in Victoria?

Working on how to make your home more energy-efficient while saving on bills, reducing your carbon footprint, and even getting discounts via government-supported programs?

If so, this blog is for you!

We’re going to take you on a walkthrough on how the Victorian Energy Upgrades (VEU) Program works, explain the key players involved, and break down essential terms like VEECs (Victorian Energy Efficiency Certificates) and accredited providers.

You’ll also find a step-by-step guide for homeowners from the application process, getting quotes and installation, to certification and savings.

At Cyanergy Australia, we specialise in residential installations under the VEU scheme, so we’ll draw on our experience and share practical insights to help you make the most of this program.

Let’s get into the details!

In this blog post:

What is the VEU Program?

The VEU (Victorian Energy Upgrades) program is a flagship energy-efficiency initiative run in the state of Victoria.
Supported by the state government, this scheme enables households to replace outdated, inefficient appliances
and systems with energy-efficient alternatives.

This is often offered at little or no cost. From LED lighting and efficient hot water systems to smart thermostats
and insulation, each upgrade slashes your energy use and reduces your carbon footprint.

And the best part? The process is simple, transparent, and designed to make energy efficiency effortless.

In just a few easy steps, you can enjoy lower bills, a more comfortable home, and the satisfaction of contributing to
a cleaner, greener Victoria.

Some Key Outlines of the VEU Program

  • The scheme was developed under the Victorian Energy Efficiency Target Act 2007, which sets a commitment for
    large energy retailers to reduce greenhouse gas emissions through energy efficiency programs.
  • However, the VEU
    airconditioning Rebate Program    , which was previously set to end much sooner, has now been
    officially extended until 2045

    • This ensures long-term support for Victorian homeowners seeking to enhance energy efficiency during heating
    and
    cooling.

  • The program is regulated by the Essential Services Commission (ESC) in Victoria. To become eligible, the
    program requires installations only from accredited providers with approved products or services listed
    in the Public Product Registry.
  • The legal mechanics essentially require energy retailers to meet annual targets for greenhouse gas
    reduction.

    • They do this by acquiring certificates called VEECs, which
    we’ll discuss in the next section.

Why the VEU Rebate Matters for Victorian Homeowners?

Upgrading to more efficient appliances or insulation often has high upfront costs and several other complexities. This can be burdensome for low-income households, so the government introduced the VEU program in order to remove financial barriers.

For example, by enabling discounts and rebates through a market-based certificate system, the program helps make it more financially appealing for homeowners.

What Does it Mean for Homeowners?

In Australia, many people often ask: Is the VEU Rebate Worth It? Well, here’s why the answer is ‘Yes’ for homeowners:

In practical terms, if you live in Victoria and upgrade your home via an accredited provider, you can get access to discounted or even no-cost energy-efficient products and services. Also,

  • The VEU Rebate directly reduces the cost of energy-efficient upgrades,
  • This makes improvements such as better insulation, solar hot water systems, and efficient heating and cooling widely accessible.
  • It not only lowers upfront expenses but also helps households save on ongoing energy bills.
  • The rebate helps to increase the comfort and value of their home and contributes to long-term environmental benefits.
  • It’s a practical way to invest in your home while easing financial pressure.

From our experience at Cyanergy Australia, many homeowners are pleasantly surprised by how accessible the program is when you choose a provider who understands it.

The Role of VEECs in Victoria’s Energy Future

So, what is a VEEC?

VEEC stands for Victorian Energy Efficiency Certificate. Each certificate represents one tonne of greenhouse gas emissions prevented or reduced through an eligible upgrade, such as installing LED lighting, upgrading heating and cooling systems, or improving insulation.

How do VEECs work?

  • A homeowner does an eligible upgrade via an accredited provider.
  • That upgrade yields a certain number of VEECs, based on the greenhouse‐gas savings of that item.
  • The accredited provider then sells those VEECs to large energy retailers who are required to surrender them to meet their legal obligations.
  • The income from selling VEECs enables the provider to offer you the discounted price for the upgrade. That’s how you get the benefit.

Now you might be wondering what an Accredited Providers (AP) mean.

An accredited provider is a business that’s authorised under the VEU scheme to conduct eligible upgrade activities, create VEECs, liaise with homeowners, and ensure agreement with the program’s rules.

Behind Every Upgrade: VEECs and Accredited Providers in Action!

Understanding VEECs and accredited providers helps you recognise how the discount or rebate works. Keep in mind you’re not getting a random free upgrade; you’re getting access to a government-backed scheme run through certified channels.

So, you should be clear about all these questions before upgrading

  1. Is this provider accredited under VEU?
  2. Which VEEC activity does this upgrade qualify for?
  3. Which model or product is being installed, and is it on the approved list?

Step-by-Step: Claiming Your Energy Upgrade Benefits with VEU

The process of how the VEU Program works is straightforward and simple. It includes a few stepwise processes, from application to installation, certification, and monitoring.

Let’s explore each step together in the following section:

Step 1: Background Research & Eligibility Check

  • Initially, you have to contact an accredited provider in your area. However, before contacting, conduct some background research on their previous experiences and running projects.
  • The provider checks whether your home is eligible under the VEU program, taking into account your location, type of dwelling, desired upgrade, and the eligible products.
  • They will offer you a quote outlining: the product to be installed, the discount amount under VEU, and the amount you have to contribute.

Step 2: Quote Approval & Scheduling

  • After reviewing the quote, ensure you understand the product brand or model, the installation cost, and what items are included (such as labour and the decommissioning of the old unit).
  • Also, check the warranty and any additional or extra-cost items.
  • Once you sign off, the installation is scheduled to proceed. Accredited providers will provide you with a specific timeframe and keep you updated.

Step 3: Installation of the System

  • The system provider arranges qualified, licensed installers to carry out the work. The installed products must meet eligibility criteria and installation standards under the VEU scheme.
  • On installation day, it’s best if you are present so the installer can access the areas, remove old units if relevant, test the new product, take photos if needed, and ensure everything is working correctly.
  • After installation, ensure you receive the necessary documentation, including the invoice, product model details, and, if applicable, a decommissioning certificate for the old equipment, as well as proof of installation.

Step 4: Certification and VEEC Creation

  • Once the upgrade is complete, the accredited provider submits the activity under the VEU program, creating the corresponding number of VEECs based on the product, activity type, and the greenhouse gas savings achieved.
  • These VEECs are then sold to energy retailers who deliver them to the ESC (via the VEU Registry).
  • After this is all finalised, you begin to enjoy lower energy bills and improved energy performance.

Step 5: Monitor your System Regularly

  • It’s now just a matter of using your upgraded system, enjoying the improved efficiency, and monitoring your energy bills. Many upgrades (especially lighting, insulation, and efficient hot water) will deliver noticeable savings.
  • If anything goes wrong, such as product failure or installation fault, please contact your provider under warranty.
  • It’s wise to keep all documentation in a safe place, as you will need it during any official audits or future upgrades.

Here’s What You Can Upgrade Under VEU!

  1. Hot Water Systems

    2. Upgrade to an energy-efficient heat
    pump
    or solar hot water system for reliable hot water and lower energy use.

  2. Heating & Cooling Units

    3. Switch to high-efficiency reverse-cycle
    air
    conditioners or split systems     to stay comfortable while cutting your power bills.

  3. LED Lighting

    4. Replace old halogen or incandescent bulbs with
    energy-saving
    LEDs     and reduce lighting costs by up to 80%!

  4. In-Home Displays (IHDs)

    5. Track your energy usage in real-time and take control of your electricity bills with smart in-home displays.

  5. Weather Sealing

    6. Improve insulation to keep your home cool in summer and warm in winter, saving energy year-round.

  6. Refrigerators & Freezers

    7. Replace old, power-hungry appliances with modern, energy-efficient models to lower your electricity costs.

What are the Common Pitfalls of VEU & How to Avoid Them?

Did you know that even a minor mistake could result in your VEU
rebate being disqualified?

Yes, it happens more often than you’d think in VIC! But don’t worry! We’ve got your back.

Here’s a quick and easy checklist that helps you avoid any common mistakes and make sure your rebate works
smoothly

  • Don’t fall for fake, flashy rebate offers. If a provider arrives unannounced, offers a “free upgrade”
    without a proper quote, or adds huge extra costs after you’ve agreed, this is a red flag.
  • Some businesses may claim to be part of VEU but aren’t properly accredited. Always check and avoid
    non-accredited providers.
  • Even when the subsidy is real, if you want a product that’s reliable and suitable for your home, then don’t
    install low-quality products.
  • Lack of transparency about upgrade scope: Understand exactly what you are paying, what’s included, and if
    old equipment removal is included.
  • Find whether additional wiring or structural work is required in any place.
  • Never think the upgrade is “totally free” cause there may still be a homeowner or tenant’s
    contribution    .

    • Many upgrades are heavily subsidised, but some of them require your contribution, for example, when you
    choose a
    higher-end product than the subsidy covers.

Why Cyanergy Is the Smart Choice for Your VEU Upgrades?

At Cyanergy Australia, when we work with homeowners under the VEU program, we take care of all the paperwork and ensure you use eligible, high-quality products every step of the way.

Not only that, we clearly explain any additional costs upfront, so there are no surprises later. Once everything’s confirmed, we schedule your installation with our licensed professionals, ensuring everything meets VEU standards.

With years of experience in residential installations, we know what works and what homeowners truly value.

So, if you’re looking for expertise, transparency, and genuine savings, Cyanergy ticks all the boxes.

For more information, reach out to our experts and win a free solar quote today!

Glossary of Terms

Terms Abbreviation
Accredited Provider (AP) A business authorised under the VEU program to conduct eligible upgrades, create VEECs, and manage the process with homeowners.
Decommissioning The removal or disposal of the old, inefficient appliance or system. It’s often required as part of eligibility to generate VEECs.
Public Product Registry An official database maintained by the ESC, listing all approved and eligible products that can be installed under the VEU program.
VEU Victorian Energy Upgrades program, the state government scheme in Victoria that supports energy-efficient upgrades for homes & businesses.
VEEC Victorian Energy Efficiency Certificate: one certificate equals one tonne of greenhouse gas emissions prevented. This is created via upgrade activities and traded by accredited providers to energy retailers.
Victorian Energy Efficiency Target Act 2007 The legislation that established the VEU program. It mandates energy retailers to achieve specific greenhouse gas reduction targets by supporting energy-efficient upgrades across Victoria.

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