VEEC definition

Written and checked by the Energy Merchants desk · Reviewed 2 October 2026

A Victorian Energy Efficiency Certificate (VEEC) is a unit of emissions abatement: one tonne of CO2-e saved. It exists because the Victorian Energy Efficiency Target Act requires energy retailers to meet a target, and the program that delivers it is Victorian Energy Upgrades (VEU).

Four things make up the definition.

1. A measured saving. Each eligible activity has a method that converts the upgrade into tonnes abated.
2. An accredited creator. Only an accredited person can create VEECs, so installers either hold accreditation or work with an accredited provider.
3. A registry entry. VEECs are created, transferred and surrendered in the VEU registry, which is run under the Essential Services Commission.
4. A liable buyer. Retailers surrender certificates annually to meet their liability.

In practice

A VEEC definition is tested whenever a customer asks why the discount differs from last month. Because VEECs trade on a market, the value changes. At the time of writing the spot price has sat in a band of roughly $85 to $95 in 2026, after a record near $110. Installers selling VEECs should track that band and the lodgement rules.

When a heat pump or efficient appliance installation qualifies for both a VEEC and an STC, the two are separate certificates and need their own evidence. Our guide to heat pump hot water STCs covers the federal side.

Common confusion

Do not mix up VEECs and ESCs. An ESC (Energy Savings Certificate) is the New South Wales equivalent, in tonnes of CO2-e of electricity savings. Both are state energy-efficiency certificates, but they trade in different schemes. Our ESC definition explains the NSW one.

Selling VEECs is covered on the VEEC trading page, and the certificate trading glossary has the neighbouring terms.