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VEECs and Victorian Energy Upgrades deep dive

How does the VEU weather sealing activity work, and what is the discount?

Short answer

Sealing gaps around doors, windows and other openings in a Victorian home has created VEECs by cutting heating and cooling loss. The ESC's rules define what work and products qualify, and the provider passes value on as a discount. Check the current activity rules before quoting.

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

Draughty homes waste heating and cooling energy. Weather sealing, also called draught proofing, is the Victorian Energy Upgrades (VEU) activity that rewards fixing it.

How it works

An accredited provider arranges sealing of gaps around openings such as external doors, windows, and in some cases exhaust fans and chimneys, using products that meet the Essential Services Commission (ESC) requirements. The savings are estimated from the work done and details of the dwelling, such as its climate zone and heating and cooling type. VEECs are created for each tonne of CO2-e abated.

What typically decides the count:

  • Which openings are sealed and how much.
  • The home’s heating and cooling, because the savings depend on what is being kept in or out.
  • Product compliance. Materials need to meet the rules.
  • The installer. Competence or accreditation requirements apply.

The discount for a household

The customer pays less because the provider expects to create and sell VEECs. Roughly, count x price x the share passed on. VEECs have been roughly $85 to $95 in 2026. Weather sealing jobs are generally small, so the discount is modest per home, though it can cover a significant share of a small job. It is indicative and price-dependent, so compare total cost.

Pitfalls

  1. Evidence. Photos of each sealed opening before and after.
  2. Consent. Signed forms that match the provider’s records.
  3. Scope creep. Work outside the activity’s definition does not earn certificates.
  4. Rule changes. Activity requirements are updated periodically, so verify before each campaign.
From the desk: use the same photo order on every job. Before and after for each door, then each window. Reviewers read hundreds and fast, consistent sets get through.

What this means for installers

Weather sealing is a volume activity, so cash flow and rejection rates matter more than a few dollars on the rate. Lodge in consistent batches and keep the register check in the file. See VEEC trading, pricing and how VEECs work. To see how long payment takes, read VEEC payment times.

Follow-up questions

People also ask

How much is the VEU discount for weather sealing?
It depends on the dwelling, the sealing done and the VEEC price, roughly $85 to $95 in 2026. The count comes from the ESC method.
Is weather sealing the same as draught proofing?
Largely, yes. The activity covers sealing gaps that let conditioned air escape. Product and installation rules are set by the ESC.

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