Commercial lighting is a mainstay of Victorian Energy Upgrades (VEU) because the savings are large and easy to measure. A lighting upgrade and a commercial LED upgrade are the same project from a customer’s point of view.
How the activity works
An accredited provider arranges for existing lighting, such as fluorescent tubes, halogen or older high-bay fittings, to be replaced with efficient LED products. The Essential Services Commission (ESC) sets out the method. In general the energy saving is estimated from the wattage of what goes out and what goes in, the hours the space is used, and any adjustment the rules specify. Each tonne of CO2-e abated creates a VEEC.
The pieces that make or break a claim:
- Eligible products. The fittings must meet the product requirements for the activity.
- Baseline. What was there before, recorded by count, type and location.
- Operating hours. Assumptions or evidence for how long the lights run.
- Installer and provider. The right licences and accreditation.
- Customer agreement. Signed consent and details consistent across forms.
The discount for a business
The customer pays less because the provider expects to create and sell VEECs. The discount is roughly the VEEC count x the price the provider uses, less costs. With VEECs at roughly $85 to $95 in 2026 at the time of writing, a site with hundreds of fittings and long operating hours can generate a large certificate count. It is indicative and price-dependent, so compare quotes on total cost and ask for the model of calculation.
Always check the ESC’s current rules on lighting. Activity conditions, eligibility and requirements change from time to time.
Lighting and other incentives
A business may also have other options, such as solar. Systems above 100 kW and up to 1 MW can now create STCs from 1 October 2026; see mid-scale solar STCs. That is a different scheme and a separate certificate.
What this means for installers
Large lighting jobs concentrate VEEC value, so price risk matters more. A trader that buys at a published rate and locks it when you lodge a complete claim removes it. See VEEC trading, pricing and how it works. Related reading: how VEECs work and VEEC payment times.