A Victorian household replacing an old electric or gas water heater with a heat pump can be looking at two certificate schemes on the same job. They are separate, and each has its own gatekeeper, but they were designed to coexist.
The two certificates
STCs come from the federal Small-scale Renewable Energy Scheme. An eligible air source heat pump on the Clean Energy Regulator’s register creates STCs based on the model, the climate zone (Melbourne and Geelong are zone 4) and the installation type. At the time of writing the market has been roughly $38 to $40 per STC.
VEECs come from Victorian Energy Upgrades (VEU), run by the Essential Services Commission. A qualifying hot water replacement by an accredited provider creates VEECs, which are sold to energy retailers. VEEC spot has been roughly $85 to $95 in 2026, with a record near $110. See how heat pump VEECs work in Victoria.
“Stacking” on one quote
Stacking means both discounts appear as separate lines. A simplified structure:
| Line | Source |
|---|---|
| Installed price | Installer |
| STC discount | Federal, small-scale scheme |
| VEEC discount | Victorian Energy Upgrades |
| Price payable | Result |
Solar Victoria rebates are a third layer and are income tested. We walk through all three in heat pump rebate stack.
What can stop the stack
- The model is on the STC register but not on the VEU activity’s product list, or the reverse.
- The system being replaced does not meet the VEU replacement conditions.
- The business is not, or does not use, an accredited provider.
- Required customer consent or paperwork is missing for one scheme.
- Rules changed between quote and install.
The general logic is in VEECs and STCs on the same job.
From the desk: quote the discounts as separate lines with a plain statement that each depends on eligibility. If one fails, the customer can see which and why.
What this means for homeowners
Ask your installer which certificates are in the price, who creates each and what happens if one is refused. Check the Essential Services Commission’s current activity requirements.
What this means for installers
Settle both positions before the quote, photograph the old system before removal and keep one evidence set that satisfies both programs. We buy STCs and VEECs, so you can settle both with one desk. See VEEC trading, pricing, how it works and the hot water STC pillar.
A note on timing
VEEC prices and STC prices move independently, and the VEU activity rules are updated periodically, including around 1 July each year. Re-check the current specification at the time of quote and again at install, particularly if the job straddles a rule change. Record the date you checked, so the file shows the rules you relied on.