Victorians embrace HVAC upgrades

The Victorian Government is celebrating the success of its Victorian Energy Upgrades (VEU) program, which supports households in upgrading to energy-efficient heating and cooling.

The program also assists businesses and tradespeople delivering installations, supporting 2700 jobs and boosting the economy.

Minister for Energy and Resources Lily D’Ambrosio recently announced that 99,000 households have used the program this year, with participation on track to exceed 170,000 by the end of 2025.

More than 41,000 households have accessed discounted heating and cooling upgrades in 2025, saving households up to $5530 on the cost of upgrading appliances and more than $1000 on their annual energy bill, according to the government.

Hot water systems are one of the most popular upgrades, with savings of up to $2030 available off the cost of installing a locally made energy-efficient hot water system when a Solar Victoria rebate is combined with a Victorian Energy Upgrades discount. So far this year, more than 18,000 households have upgraded their gas water heating to electric, saving up to $330 off their energy bills annually.

Victorians can access discounts on a wide range of upgrades, including reverse cycle air conditioners, heat pump hot water systems, induction cooktops, weather sealing and more.

The government is also undertaking a Strategic Review of the program to make the process smoother for Victorian residents and businesses to get involved. Findings of the review have now been submitted and the government is considering its response.

For more information, visit: energy.vic.gov.au/victorian-energy-upgrades.

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