Published

11 months ago

December 24, 2024

Alice Rush

Many businesses today choose sustainable practices to reduce their environmental impact and save money. One way to do this is by focusing on energy efficiency and saving energy.

The Victorian Energy Upgrades (VEU) program is a government initiative that helps businesses adopt energy-efficient solutions and offers financial benefits through Victorian Energy Efficiency Certificates (VEECs).

So what VEECs and how can they save your business money? Let’s find out.

About Victorian Energy Upgrades

The Victorian Energy Upgrades (VEU) program, previously known as the Victorian Energy Efficiency Target (VEET), is one of Victoria’s most effective programs for reducing energy use and greenhouse gas emissions.

Created by the Victorian Government, the program encourages homes and businesses to use energy-efficient technologies and practices.

It offers financial incentives to reduce the upfront costs of energy-efficient upgrades, making them more affordable and accessible for everyone in Victoria.

How the Program Works

The VEU program is based on a system of Victorian Energy Efficiency Certificates (VEECs). Each VEEC equals one tonne of greenhouse gas emissions saved through approved energy-saving activities.

Accredited providers, like Cyanergy, carry out these activities. Examples include:

Replacing old, inefficient lighting with LED lights.

Installing energy-efficient appliances.

Upgrading insulation.

Adding renewable energy systems like solar hot water.

For each upgrade, providers generate VEECs and pass savings to consumers through discounts or rebates.

Energy retailers in Victoria must buy and submit a certain number of VEECs each year to meet legal emissions reduction targets. This drives energy-saving projects and promotes efficient technologies in homes, businesses, and industries.

Benefits of the Program

The VEU program offers several advantages:

Lower Costs: Households and businesses save on energy bills using less energy.

Environmental Benefits: The program reduces greenhouse gas emissions, supporting Victoria’s climate goals.

Economic Growth: By boosting demand for energy-efficient products, it supports local businesses, creates jobs, and promotes innovation in green technology.

Accessibility: Financial incentives make participating easier for low-income households and small businesses.

Program Scope and Eligibility

The program includes various energy-saving activities for homes and businesses, such as:

Switching old halogen or incandescent lights to energy-efficient LEDs.

Installing efficient heating, cooling, and ventilation systems.

Upgrading appliances like refrigerators and freezers to energy-saving models.

Improving building insulation and sealing to prevent energy loss.

Adding renewable energy solutions, such as solar hot water systems.

Participants range from individual households to large businesses, ensuring the benefits of energy efficiency reach all parts of the community.

What are Victorian Energy Efficiency Certificates (VEECs)?

VEECs are digital certificates representing the savings of 1 tonne of greenhouse gas emissions (measured as CO2 equivalent) through energy-saving actions by homes and businesses.

These certificates are part of the VEU program, run by the Essential Services Commission.

Businesses can earn VEECs by adopting energy-saving methods like upgrading lighting, adding solar panels, or improving heating and cooling systems (HVAC).

These certificates make energy-efficient products and activities more affordable, helping businesses cut costs and reduce greenhouse gas emissions.

How Victorian Energy Efficiency Certificates Work?

Victorian Energy Efficiency Certificates (VEECs) are part of the Victorian Energy Upgrades (VEU) program, which started in 2009 to help reduce greenhouse gas emissions from energy use by encouraging energy efficiency.

To be part of the VEU program, energy-saving products must be approved and listed in the program’s Register of Products. This involves an application and approval process.

Accredited providers must carry out installations and energy-saving activities to generate VEECs.

Common ways to earn VEECs include:

Upgrading lighting in commercial buildings.

Improving heating and cooling systems (like water heaters and air conditioners).

Switching to high-efficiency appliances like fridges, pool pumps, and clothes dryers.

Insulation or low-flow showerheads should be added for better energy use in homes.

Lighting upgrades have been the main source of VEECs so far. However, many lighting products have recently been removed from the program’s approved list so that more certificates will come from other energy-saving activities.

Under the VEU scheme, energy retailers must participate if they sell large amounts of gas or electricity in Victoria. Retailers are considered responsible if they either:

Serve at least 5,000 customers.

Sell over 30,000 megawatt hours (MWh) of electricity.

Sell over 350,000 gigajoules (GJ) of gas.

How Are VEEC Prices Determined?

The price of Victorian Energy Efficiency Certificates (VEECs) is influenced by several factors, primarily the amount of greenhouse gas emissions reduced by energy-saving projects and market forces like supply and demand.

How VEECs Are Generated?

The number of VEECs created by an energy efficiency project is directly tied to the amount of greenhouse gas emissions it saves.

For example, upgrading a building’s lighting or installing a solar hot water system reduces energy use, which lowers emissions.

Each tonne of emissions saved is converted into one VEEC, making these certificates a measurable representation of environmental benefits.

Who Buys VEECs?

Several entities participate in the VEEC market, including:

Energy Retailers: These companies have legal obligations under the VEEC Act. Their liability is calculated based on the total energy (electricity or gas) they sell yearly.

To meet these obligations, they must purchase and submit a specific number of VEECs annually.

Accredited Persons: Businesses or individuals accredited under the VEU program for energy efficiency upgrades may purchase VEECs to meet project requirements or manage their commitments.

Certificate Traders: These entities act as intermediaries, buying and selling VEECs to ensure smooth market functioning.

Other Account Holders: Any organisation or individual with a VEU account can trade or hold VEECs, often for financial or compliance purposes.

How Are VEEC Prices Set?

Like other environmental certificates across Australia, VEEC prices are determined by market dynamics. The spot price, or current market price, changes based on:

Supply: The availability of VEECs depends on the completion and creation of energy-saving projects and certificates. If more projects are implemented, the supply of VEECs will increase.

Demand: Demand comes primarily from energy retailers meeting their legal obligations and others trading VEECs. Prices may rise if demand is high (e.g., due to increasing energy retailer liabilities or growing participation in energy efficiency programs).

Market forces, regulatory changes, and technological advancements can significantly affect supply and demand, causing the spot price of VEECs to fluctuate.

How VEECs Help Beat Energy Prices?

VEEC prices impact:

Consumers: Higher VEEC prices may translate to better rebates and discounts for households and businesses adopting energy-efficient upgrades.

Energy Retailers: Rising VEEC costs increase compliance expenses, which may influence consumer energy prices.

Market Stability: A healthy balance between supply and demand ensures a stable VEEC price, supporting continued participation in the program and fostering investment in energy efficiency projects.

Understanding these price dynamics helps stakeholders decide about energy efficiency investments and trading strategies.

Benefits of VEECs for Your Business

Victorian Energy Efficiency Certificates (VEECs) can provide several advantages for businesses, especially those with high energy consumption in Victoria.

These benefits include cost savings, faster returns on investment, and opportunities for further improvements in energy efficiency.

Lower Upfront Costs

VEECs act as financial incentives, reducing the initial costs of energy-saving upgrades. When a project generates VEECs, businesses can apply the value of these certificates as a discount on the capital costs of upgrades like:

Replacing inefficient lighting with LEDs.

Upgrading HVAC systems or insulation.

Installing solar hot water or other renewable solutions.

This makes energy-efficient upgrades more affordable and easier to implement.

Faster Payback Periods

With reduced upfront costs, businesses can recover their investment more quickly through savings on energy bills. By lowering energy consumption, businesses spend less on electricity and gas, directly improving their bottom line.

Reinvestment Opportunities

The financial savings generated by energy-efficient upgrades can be reinvested into additional projects. For example:

After upgrading to energy-efficient lighting, a business might use the savings to install renewable energy systems like solar panels.

This cycle of reinvestment helps businesses continuously improve energy efficiency and further reduce operational costs.

Tailored Benefits for High-Energy Consumers

Participating in the Victorian Energy Upgrades (VEU) program can lead to significant long-term benefits if your business uses large amounts of electricity or gas. High energy users stand to gain the most from reduced consumption and the financial value of VEECs.

Environmental and Reputation Benefits

Adopting energy-saving measures and participating in the VEEC program enhances your business’s reputation. Customers and stakeholders increasingly value companies that prioritise sustainability and take steps to reduce their carbon footprint.

If your business is in Victoria and consumes substantial electricity, gas, or both, participating in the VEU program and earning VEECs can be a smart move for your operations and bottom line.

How can VEECs make your business more energy efficient?

VEECs (Victorian Energy Efficiency Certificates) can make your business more energy-efficient by helping you identify energy-saving opportunities and implementing upgrades.

With expert support, you can reduce energy use, lower operating costs, and improve sustainability while benefiting financially.

To generate VEECs, you need to work with an Accredited Provider. Cyanergy is an Accredited Provider under the Victorian Energy Upgrades (VEU) program and offers assistance in creating VEECs through eligible energy projects.

Talk to an expert TODAY!

Your Solution Is Just a Click Away

The post What Are VEECs and How Can They Save Your Business Money? appeared first on Cyanergy.

https://cyanergy.com.au/blog/what-are-veecs-and-how-can-they-save-your-business-money/

Renewable Energy

Has the Fever Broken?

Published

2 days ago

November 15, 2025

Alice Rush

Many Americans are starting to feel like the lady whose observations we see at left.

Exactly how this moves forward from here is anyone’s guess. Maybe the Democrats gain a huge majority in Congress in 2026 and then impeach and convict Trump–perhaps joined by lots of Republicans.

There are plenty of different scenarios.

Has the Fever Broken?

Renewable Energy

Trump and Climate Change

Published

2 days ago

November 15, 2025

Alice Rush

As shown in this short video, Donald Trump says that climate change is the biggest con job ever perpetrated on Earth.

We are to believe that Trump a) understands the subject better than the thousands of our planet’s top scientists, located in countries all around the globe, and b) he’s telling the truth, where they have somehow gotten together and conspired to lie.

That’s quite a stretch.

Trump and Climate Change

Renewable Energy

Can You Stack VEU with Solar or Other Incentives? – Find Out

Published

3 days ago

November 14, 2025

Alice Rush

Renting in Victoria often comes with its share of compromises, especially when it comes to heating and cooling.

In Victoria, most households face high bills and reduced comfort because their old gas heaters kick in during winter or inefficient split-system air conditioners struggle to keep homes cool throughout summer.

Fortunately, there’s a golden opportunity many residents don’t know about: the Victorian Energy Upgrades (VEU) Program. This government-backed initiative offers meaningful rebates and discounts for efficient heating and cooling and other home upgrades.

But the question is: Do rental properties qualify for the VEU rebates?

The answer is yes, but there are a few important things tenants need to know.

Therefore, in this article, we’ll guide you through how tenants in VIC can benefit from VEU air con Upgrade, how the landlord consent process works, and share some real-world examples that you can follow to get started.

So, let’s begin!

In this blog post:

Understanding VEU Air Con Rebates: Can Renters Benefit?

As mentioned earlier, the Victorian government has introduced the Victorian Energy Upgrades (VEU) program to help
households and businesses reduce energy costs and lower greenhouse gas emissions.

Under this scheme, accredited providers offer rebates or discounts on the installation of energy-efficient products,
including reverse-cycle
air conditioners that replace older, inefficient systems in your home.

How Does the VEU Rebate Program Work?

The government issues “VEU certificates” for each upgrade, which energy companies then buy to meet their
emissions-reduction targets. This trading system allows households to receive up-front discounts.

Significantly, tenants can also benefit from the rebate if they have their landlord’s approval for installing air conditioners.

In rental homes, this upgrade not only improves comfort and reduces electricity bills but also helps landlords meet
Victoria’s minimum energy-efficiency
standards for rental properties.

Eager to know more?

Here is how renters can benefit through VEU air con Upgrades:

Lower energy bills

Upgrading to a high-efficiency reverse-cycle air conditioner under the VEU scheme can significantly reduce your
heating and cooling costs.

For example, recent data represents estimated savings of $120 to $1,100 per year, depending
on the size or type
of
upgrade.

Switching to efficient heating
and cooling systems helps reduce ongoing operational costs.
In your home, better temperature control means you’re less reliant on inefficient systems, like gas-burning
heaters or fans.

Improved comfort and living conditions

In a rental property, installing a modern, energy-efficient cooling system means better indoor comfort.
This VEU air con upgrade can be especially relevant in rentals where older systems may struggle or be
inefficient.

Eligibility and access permission as a tenant

Tenants can access upgrades under the VEU program, though you’ll need to coordinate with the landowner.
The best part is that there are no income thresholds to meet. The program is broadly available to Victorian
households and rental properties.
The discount is applied via an accredited provider, so the cost to the tenant (or the landlord/tenant jointly)
is reduced upfront.

Air Con Upgrade adds value to the rental property

Even though this VEU rebate directly benefits the property owner or landlord in terms of value appeal, tenants
also benefit by renting a property with better systems that likely have fewer repairs or maintenance issues.
Upgrades reduce maintenance
tasks for tenants, as older systems are more likely to break, causing discomfort or disputes over
repairs.

Do Tenants Really Need Landlord Consent? | The Approval Process Explained!

If you are living in a rental property in VIC and thinking about upgrading your air conditioning system through the
VEU program, you might be wondering — do I need my landlord’s approval before installing the new unit?

Well, since you don’t own the property you’re renting, one of the first steps as a tenant is to talk with your
landlord and seek permission.

It’s important to check in with your landlord before making any upgrades or installations. It helps avoid common mistakes
that disqualify you from a rebate, ensures compliance with your lease, and keeps everything running
smoothly.

Here’s how the landlord approval process usually works and what you should do to get landlord approval
fast:

Initiate the conversation

As a tenant, you can raise the possibility: “Would you be willing to upgrade the heating/cooling system under the
VEU
rebate scheme?” You can emphasis the long-term benefits to the landowner, such as lower bills, greater comfort,
and
improved property value.

Check eligibility together: here’s what to check!

Confirm the property has existed for more than 2 years.
Verify whether the existing system is eligible for replacement, e.g. an old gas heater or a low-efficiency
AC
unit.
Not all the brands
and
models are eligible, so check the public
registry to find a suitable one.
Make sure the upgrade has not been claimed for that property before. The program won’t allow duplicate
claims.
Select a VEU-approved product and an accredited installer, such as Cyanergy.

The landlord gives consent

Your landlord or rental provider must agree to the upgrade. Many installers note that rental properties can
access
the scheme only when the owner provides landlord approval.

Transparent discussion on cost & contract

Before installing a system, a contract with the installer will outline the rebate and installation details,
including
who pays upfront.

It’s wise for both the landlord and tenant to review it.

Installation & rebate claim

The installer handles the application under the VEU scheme, ensuring that the discount/rebate is applied. The
landlord will likely be the applicant (since they’re the property owner), but tenants can initiate or support
the
application.

Post-installation: Allocation of benefits

After installation, the improved system delivers reduced energy use. The agreement between landlord and tenant
should
clarify how those savings are handled.

Pro Tips Every Tenant Should Know During the Rental Process

To get the most out of this opportunity, here are some best practices especially tailored for tenants:

Get everything in writing, keep records, and retain a copy of the document for both the landlord and you.
Request an estimate that clearly outlines the rebate process or discount amount, allowing you to see the actual cost.
Ask the installer to clarify the warranty, ongoing maintenance, and any other relevant details.
Ensure the landlord agrees to your shared arrangement, including the cost, benefits, and timeframe, before committing to it.

How are Costs and Incentives Shared?

One of the main questions is: when a tenant benefits, who pays for what? And how incentives are distributed?

Well, under the VEU scheme, here’s how it typically works:

Incentives offered

According to the Victorian government’s heating and cooling factsheet, installing an efficient reverse-cycle air conditioner can result in significant savings. For example:
- Up to about $840 when replacing a hard-wired electric resistance room heater ranging from 3 kW-9 kW in a non-ducted setting.
- Up to $2,520 for replacing a ducted gas heater and installing 4 split systems (1×8 kW + 3×3 kW).
The program also notes that for rental properties, benefits apply: the regulatory impact assessment states:
“The VEU program is available to renters. The program encourages collaboration between rental providers and tenants to work together on upgrades.”

So, who bears the cost?

When discussing cost-sharing for installing an air conditioning system in a rental property, the tenant may offer to contribute by paying higher rent, extending the lease term, or sharing the energy savings.

This helps both the landlord and tenants to secure the upgrade quickly.

However, in most cases, the landlord pays the bulk of the cost or arranges for the installer to claim the rebate or discount, reducing the upfront cost.

Then, the installer essentially offsets your rebate via VEECs (Victorian Energy Efficiency Certificates) and passes the benefit on to the customer.

The rebate is usually applied up front, reducing the installation cost, and the amount depends on the type of system you remove and the system you install.

Sharing Benefits Between Landlord and Tenants: A Collaborative Approach

Upgrading the air conditioner or installing a new unit under the VEU rebate program can benefit both tenants and
landlords. While tenants benefit from lower power bills and greater comfort, landlords benefit from improved
property value.

Let’s picture this:

Example Scenario

The tenant initiates the upgrade, and the landlord agrees. The installer’s quote shows the system costs $4,000, with
a $2,500 rebate, so the net cost payable is $1,500.

The tenant might offer to sign a 2-3-year lease extension, providing the landlord with stability in return for a
share of the savings, such as lower power bills or a slight rent increase.
Landlord receives a modern upgrade, a better energy rating, and reduced risk.
Tenants enjoy comfort and lower bills, all while living in a rental.

However, even with a rebate, the property owner must meet the minimum customer contribution.

For instance, for a non-ducted reverse-cycle air conditioner under 10 kW, the minimum cost is $200 for a multi–split
system and $1,000 for a ducted system.

So, remember! While rebates are generous, they don’t always cover everything.

Ready to Upgrade Your Rental Home’s Efficiency? Cyanergy Make it Easy!

Whether it’s Victoria or NSW, more efficient rentals mean happier tenants and lower running costs. It’s a win-win for both. Don’t wait to make your property more efficient and affordable to run.

Let Cyanergy handle everything from rebates to installation so you can enjoy peace of mind and lasting value.

Start your upgrade journey today with us!