Most people think of Victorian Energy Upgrades (VEU) as a household program. It is also one of the most useful capital-cost tools for Victorian businesses, because it turns future energy savings into an upfront discount.
What businesses can claim
The Essential Services Commission (ESC) lists activities that apply to non-residential premises. The main ones:
- Lighting: building-based (activity 34) and non-building-based (activity 35) upgrades. See how many VEECs an LED retrofit creates.
- Motors and refrigeration fans: activities 31 and 33. See motors and drives.
- Refrigeration: display cabinets (32, with some classes at zero) and cold rooms (43). See refrigerated cabinets.
- Hot water: heat pumps in commercial, multi-residential and industrial sites (44), plus activities 1 and 3 for replacement of resistance, gas or LPG systems. See commercial heat pump water heaters.
- Solar: 30 to 200 kW commercial and industrial PV (activity 47). See the C&I solar activity.
- Gas plant: boilers, burners, economisers and control systems (activities 37 to 42).
- Appliances, windows and air conditioning also apply to commercial premises in the activity list.
- Project-based activities for bespoke measured upgrades. See project-based activities.
How the discount works
A provider accredited under the program installs the upgrade, creates VEECs and sells them. The business sees the value as a lower invoice. One VEEC is roughly $85 to $95 at the time of writing, and the count depends on the activity method, so the discount varies widely. Always ask for the certificate count, the price applied and any minimum co-payment in writing.
Timing
Deemed activities such as lighting and motors settle quickly once certificates are created. Project-based work takes longer, because the saving is measured after the upgrade. If a provider offers an upfront discount on a measured project, ask whether it is a fixed amount or an estimate that is adjusted after measurement.
What this means for businesses
- Compare quotes on net cost, not only the headline discount.
- Ask who is accredited and who bears audit risk.
- Check the product is on the VEU register where required.
- Plan upgrades together: lighting, motors and refrigeration on one site can be bundled into a single project with one provider.
What this means for installers
Commercial jobs are larger, signed by decision-makers who read contracts. Authority to sign the VEEC assignment form, access for photos and baseline measurements, and clear invoicing are the main administrative issues. Pair accredited work with a trader that settles quickly, because commercial parcels tie up more cash.
Selling the certificates
See how VEECs work, the VEEC trading pillar and the buy rate on /pricing/. Where a job also creates STCs, read stacking VEECs and STCs. When you are ready, start trading.
Confirm eligible activities and rules with the ESC before quoting.