A Victorian Energy Upgrades discount is a lower price on an efficient product, funded by a market for certificates rather than by a government cheque. When an accredited business installs an approved heat pump, heater or similar upgrade in your home, the energy it will save is converted into certificates called VEECs. Those certificates are sold to energy retailers, who are legally required to buy them, and part of that value comes back to you as a discount on the invoice.
That is all there is to it, but the mechanism produces some surprises at the door: discounts that vary between providers, “free” offers that are not, and paperwork you need to sign. This guide explains what you will see, what to ask, and how to avoid being sold the discount rather than the upgrade.
What happens, step by step
- A provider quotes an upgrade. The quote should show the product, the full price, and the VEU discount applied.
- You consent. The provider needs your agreement for the certificates to be created from work at your property, and you will usually sign a form confirming the work and your details.
- The work is done to the activity’s specification. An approved product, a qualified installer, and evidence such as photos and serial numbers.
- The provider creates the certificates in the VEU Registry, which the Essential Services Commission runs.
- The provider sells the certificates, and the value funds your discount and their costs.
- The ESC can audit. If the work or evidence does not meet the specification, certificates can be rejected, which is the provider’s problem and cost, not yours.
Who actually pays
Large energy retailers carry the obligation to surrender VEECs and recover the cost in their pricing, so the funding is spread across Victorian energy customers. No state budget line funds your discount. That is why the scheme can scale, and why the discount you see depends on the certificate price on the day, which moves. In 2026 the market has traded roughly between $85 and $95 per VEEC at the time of writing, after a record near $110.
What kinds of upgrades qualify
The ESC publishes the list of activities and their requirements. In households they have covered hot water (including heat pump water heaters), heating and cooling such as efficient reverse-cycle air conditioners, and some other efficiency measures. The list and the technical rules change, so check the ESC page rather than relying on a salesperson’s brochure. If a product is not on the approved list at the time of installation, there is no discount.
A worked illustration
Suppose a heat pump replacing an ageing electric storage system creates the equivalent of 25 VEECs. At $90 each that is $2,250 of certificate value. A provider who passes most of it on might show a discount of, say, $1,800 on the invoice, keeping the balance to cover accreditation, compliance and selling costs. A provider who passes on less may still be fair if it offers a better warranty or service; the way to tell is to compare the net price for the same product, not the size of the discount.
These figures are an illustration. Actual certificate counts depend on the product’s rating, the system it replaces and the rules of the day. Use the ESC’s information for your case.
Stacking with other incentives
A Victorian household may be able to draw on several things for one job:
| Source | What it is | Notes |
|---|---|---|
| VEECs | Victorian certificates | Created by accredited provider, discount on invoice |
| STCs | Federal certificates | Apply to eligible heat pumps and solar hot water |
| Solar Victoria | State program | Income-tested; the household income cap fell to $150,000 on 1 July 2026 |
Rules differ and some combinations are restricted. Our guide to heat pump hot water STCs explains the federal side, and VEECs and STCs on the same job covers how an installer handles both.
Questions worth asking before you sign
- Are you accredited by the ESC to create VEECs, and can I see your accreditation?
- Which product and model number are you installing, and is it on the approved list?
- What is the full price, the VEU discount and the net price?
- Is any other incentive built into the price, and how?
- What is my warranty and who is the installer?
- What am I signing and what does it let you do with my details?
Common myths
“It is free.” Rarely. Some activities have been offered at no cost to the household, but not all, and the product and installation still have a cost the provider recovers from the certificates.
“The rebate never changes.” The certificate price, the activity rules and the targets all change. The scheme’s legislated life was extended to 2045, but individual activities can be amended.
“I will get a cheque.” You will not. The benefit is in the price.
How to tell a good offer from a poor one
Compare offers on net price for an identical product. If two providers quote the same heat pump at different net prices, ask each what portion of the certificate value they pass on, what warranty they provide and who services the unit. A provider who is open about these answers is usually one who expects to be around for the warranty period.
Look at the installation as well as the discount. A heat pump needs the right size for the household, adequate space and a suitable location for the outdoor unit. A discount on the wrong system is not a bargain. Ask the installer how they sized the unit and whether the existing electrical supply can handle it.
Finally, keep your documents. Your invoice, the product model, the installer’s details and any signed consent are the record that the work happened as described. If a warranty claim or an audit question arises years later, you will be glad to have them.
Related answers: how VEECs work and heat pump VEECs in Victoria.
What to do next
- Check the ESC website for the activity you are considering and the list of accredited providers.
- Get two written quotes with full price, discount and net price.
- If you are an installer and want a buyer for your certificates, see VEEC trading, how it works and /pricing/.
- For broader context, read our guide to the Victorian Energy Upgrades program.