Lighting is still the most common commercial job in Victorian Energy Upgrades (VEU). The question “how many VEECs?” has no single answer, because a deemed activity calculates the count from the specifics of the job.
The two lighting activities
Activity 34 is the building-based lighting upgrade. Activity 35 is the non-building-based lighting upgrade, such as car parks and outdoor areas. Both are listed by the Essential Services Commission (ESC) as non-residential only. Public lighting is separate again, under activity 27.
What drives the certificate count
The ESC’s method works out the greenhouse gas abatement from the difference between the lighting you remove and the lighting you install. In practice, these inputs matter:
- The wattage of the old and new fittings.
- The type of space and its hours of operation.
- The product, which must be on the VEU register of products.
- The number of fittings.
- Whether the work is in a building, which affects the pathway.
A large warehouse running 24 hours replacing high-wattage fittings can create a big count. A small retail fit-out with lower hours creates far fewer. That is why quoting a number without the site data is guesswork. Use the ESC’s activity guide and the VEU Registry’s tools to calculate it.
What a VEEC is worth
One VEEC is worth roughly $85 to $95 on the spot market at the time of writing. Multiply the count by the price and subtract your costs, and you have a rough view of the discount a customer can be offered. The market moves, so see today’s price and lock the price when the parcel is sold.
What this means for installers
- Confirm the product is on the register before ordering, for the exact model.
- Survey and document the existing lighting: counts, wattages and photos.
- Check the minimum co-payment and any other conditions in the current guide.
- Retain disposal evidence for removed fittings if required.
- Expect audits on both the baseline and the install. See what the ESC checks.
A worked way to think about it
Take two sites. A 3,000 square metre warehouse running two shifts, swapping old high-bay fittings for efficient LEDs, saves a large amount of lighting energy every year, so the certificate count is high. A small office with modest hours and already-efficient fittings saves little, so the count is low. The same product, installed at both, earns very different certificates. When you give a customer an estimate, state the assumptions (fittings, hours, space type) so they can see why the figure is what it is, and update it if the survey changes.
Settlement
Lighting parcels can be sizeable, so how you sell matters. Read how VEECs work, the VEEC trading pillar and /pricing/ for today’s buy rate. When you have accredited work, start trading.
Activity rules and discount factors change. Confirm with the ESC before you quote a customer.