A VEEC is one tonne of CO2-e abated. The number a heat pump creates is the energy saving the Essential Services Commission (ESC) credits to that model for that activity, converted into tonnes. It is a calculation done on the product and the situation, not a flat figure per install, so be wary of any claim that a heat pump “gets X VEECs”.
What sets the number
| Factor | Effect |
|---|---|
| Product model | Models are listed with modelled savings; more efficient or better-suited models earn more |
| What is replaced | Replacing an old gas or electric resistance unit can produce different results |
| Activity and its rules | The water heating activity defines the method, conditions and any limits |
| Region or climate input | Where the method uses it |
| Date | Rules and factors are updated over time |
Always take the number from the ESC’s current product registry or calculator, and confirm the model is accepted for the activity on the day you install. See heat pump VEECs in Victoria.
From VEECs to dollars
VEEC value = number of VEECs x the price your trader or provider pays. With VEECs at roughly $85 to $95 in 2026 at the time of writing (see VEEC price today), every 10 VEECs is about $850 to $950 before the provider’s costs. Rates are on the pricing page.
The homeowner view: VEU hot water discount replacing gas
A Victorian household replacing a gas hot water system with a heat pump may see a discount on the quote that comes from VEECs. The discount is set by the provider, based on the certificates it expects, and applied upfront. Points for homeowners:
- Compare quotes on the final price after all discounts, not on the size of the discount line.
- Ask which VEEC activity and which product the quote assumes.
- Ask whether a federal STC discount is also included, since a qualifying model can get both.
- Check Solar Victoria separately; its household rebates have their own eligibility rules, including an income cap that fell to $150,000 on 1 July 2026. VEU is run by the Essential Services Commission and Solar Victoria is a different program.
- Gas disconnection rules, plumbing and electrical work still apply and are not covered by the discount.
See VEU versus Solar Victoria.
What this means for installers
Build the quote from the registry numbers for the exact model, show STC and VEEC discounts separately and keep evidence of what was replaced. The heat pump STCs explainer, the hot water STCs page, the VEEC pillar and VEEC trading cover the rest.