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VEECs and Victorian Energy Upgrades deep dive

How do VEU project-based activities work for commercial upgrades?

Short answer

Project-based activities (PBA) credit a bespoke business upgrade, such as HVAC, fans or refrigeration, using energy savings measured before and after. The VEEC count follows the verified saving, not a fixed product formula, so the discount cannot be quoted until the project is measured.

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

Not every efficiency upgrade fits a product list. A factory that rebalances an air system, adds fans to move warm air off a roof or replaces a refrigeration plant is doing a one-off job. Victorian Energy Upgrades (VEU) handles these through project-based activities (PBA).

What PBA means

Under PBA, energy savings are determined from measurements of actual consumption before and after the upgrade. The incentive follows the measured saving at that site. Reforms completed by the Victorian Government’s energy department updated the regulations to establish four pathways, balancing paperwork against project complexity. Measurement and verification (M&V) is the most common and has been in the program since 2017. The specified measurement method was added in the M&V specification update of 20 June 2025.

Typical technologies include process heat and steam, HVAC, refrigeration systems, and fans and motors.

Destratification fans

Destratification fans push warm air that has risen to the ceiling of a tall building back down to floor level, cutting heating demand. They do not appear as their own deemed activity in the ESC’s list, so a business would look at PBA, where the saving is measured on gas or electricity use. The certificate count depends on the measured saving, which depends on building height, heating system and operating hours.

Commercial HVAC upgrades

A single high-efficiency air conditioner has a deemed activity (activity 6). Larger commercial HVAC replacements, controls upgrades and chiller plant work generally do not fit that formula. They go through PBA, with a baseline period, the upgrade, then a measured period.

How much is the discount?

There is no honest figure up front. The VEEC count comes from the verified saving, and the dollar value is those certificates at the market price (about $85 to $95 at the time of writing), less project costs. Some providers offer an upfront estimate and adjust after measurement. Insist on knowing how that adjustment works.

What this means for installers and providers

  • Plan measurement before the work starts. A missing baseline cannot be recreated later.
  • Use competent measurement staff and document meter data, calibration and the method chosen.
  • Expect longer timelines than a deemed activity. Certificates arrive after the measured period.
  • Keep an audit-ready file. See what the ESC checks.
From the desk: if the baseline data is thin, the project may not be worth the paperwork. Ask the question before you sign the customer.

Where it fits

PBA is for bigger commercial and industrial sites. Smaller jobs are cleaner under deemed activities. For the claim and settlement path, see how VEECs work and the VEEC trading pillar. Rates are on /pricing/, and our desk can walk you through a larger parcel when you start trading.

Check the current M&V activity guide with the Essential Services Commission, since it has been revised repeatedly.

Follow-up questions

People also ask

Are destratification fans a deemed activity?
Not in the ESC's list of activities. They are normally claimed as a project-based activity with measured savings.
Can commercial HVAC upgrades earn VEECs?
High-efficiency air conditioners have a deemed activity (6). Larger or bespoke HVAC upgrades usually go through project-based measurement and verification.
How many pathways are there?
Four pathways under the project-based regulations, including measurement and verification and a specified measurement method introduced in June 2025.

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