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VEECs and Victorian Energy Upgrades deep dive

How do VEU high-efficiency motor and drive discounts work?

Short answer

Victorian Energy Upgrades pays VEECs for installing high-efficiency motors (activity 31) and refrigeration fan motors (activity 33) at non-residential sites. Variable speed drives are generally handled as project-based activities. The size of the discount depends on the product, so ask for a written estimate.

Written and checked by the Energy Merchants desk · Reviewed 3 October 2026 · For installers and homeowners

Motors run pumps, fans, compressors and conveyors, and they quietly use a large share of a factory’s electricity. Victorian Energy Upgrades (VEU) has had a motor activity for years, aimed at businesses replacing standard motors with high-efficiency ones.

The two motor activities

Activity 31 is the installation of high-efficiency motors. Activity 33 is the installation of high-efficiency refrigeration fan motors. Both are non-residential only. Changes reported by the Essential Services Commission (ESC) allowed motors meeting the IE3 premium efficiency level to be installed under scenario 31B, and introduced a minimum co-payment of $200 per product installed. The changes responded to industry feedback and aimed to lift product supply and uptake.

The co-payment matters for quoting. The customer must pay at least that amount per motor, so a free-motor offer is not allowed. If your sales pitch is “we install it at no cost”, check it against the activity rules first.

What about drives?

Variable speed drives and other control upgrades do not appear as their own deemed activity in the ESC’s list. A business that upgrades pumping or fan systems with drives would normally be looking at a project-based activity, where energy use is measured before and after and the certificates reflect the actual saving. Our page on project-based VEU activities explains that pathway.

How much is the discount?

For deemed activities, the number of certificates is set by the ESC’s calculation for the product. The customer’s discount is the value of those certificates less the provider’s costs. With VEECs at about $85 to $95 at the time of writing, a larger motor earns more than a small one, but there is no universal figure. Ask for the certificate count and price applied, in writing.

What this means for installers and electricians

  • Confirm the motor model is on the VEU product register for the right scenario.
  • Record the replaced motor, the new nameplate and photos of both.
  • Collect a VEEC assignment form signed by someone with authority at the business.
  • Build the $200 minimum co-payment into the quote.
From the desk: a motor swap looks simple, but the audit question is always whether the replaced motor was working and standard efficiency. Photograph the old nameplate before it leaves site.

Selling the certificates

Motor jobs can be done in batches across a plant, which turns small certificate counts into a decent parcel. For the claim path, see how VEECs work and how to choose a VEEC trader. The VEEC trading pillar covers our approach, today’s rate is on /pricing/, and you can start trading when you have accredited work to settle.

Specifications are updated regularly, so confirm the current activity guide before quoting.

Follow-up questions

People also ask

Is there a minimum co-payment for motors?
Yes. The ESC reported a minimum co-payment of $200 per product installed for the high-efficiency motor activity after its changes.
Are IE3 motors eligible?
The ESC's changes allowed motors meeting the IE3 premium efficiency level to be installed under scenario 31B.
Are variable speed drives a deemed activity?
Not in the activity list we have seen. Drives are usually claimed through project-based measurement and verification.

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