VEU rebate guide for HVAC installers Victoria 2026
VEU Rebate Guide for HVAC Installers Victoria 2026
By Fastflex Heating & Cooling Supplies | Published June 2026 | 8 min read
The Victorian Energy Upgrades (VEU) program is one of the most powerful tools available to HVAC installers right now — letting you offer customers thousands of dollars off a new system, applied upfront on the invoice. Here’s everything you need to know to use it in your business in 2026.
Quick Reference
| Program | Victorian Energy Upgrades (VEU) |
| Administered by | Essential Services Commission (ESC) |
| Max discount available | Up to $5,530+ (gas ducted replacement) |
| Current VEEC price | $55.00 ex-GST (via 1st Energy Rebates) |
| Eligible refrigerants | R32 (GWP under 700) — R410A not eligible |
| Property requirement | Over 2 years old, in Victoria |
| Fastflex rebate partner | 1st Energy Rebates — 03 9811 7043 |
| Program end date | 2030 |
What Is the VEU Program?
The Victorian Energy Upgrades (VEU) program is a state government initiative administered by the Essential Services Commission (ESC). It’s designed to reduce greenhouse gas emissions by making it cheaper for Victorian households and businesses to upgrade to energy-efficient products — including reverse cycle air conditioning systems.
The mechanism works through Victorian Energy Efficiency Certificates (VEECs). When an eligible system is installed, VEECs are generated based on the estimated lifetime energy savings. These certificates are sold to energy retailers — who must buy them to meet government targets — and the value flows back to your customer as an upfront discount on their installation price.
The result: your customer pays less on the day. You win the job. The paperwork is handled by an accredited provider — not you.
How Does It Work for Installers?
As a licensed HVAC installer in Victoria, you have two ways to participate:
Option 1 — Partner with an Accredited Provider
The simplest route. You install the system, and a VEU Accredited Provider — like Fastflex’s official partner 1st Energy Rebates (using the RebateM8 app) — handles all certificate creation, compliance, and ESC submission. The rebate is applied as a discount on the customer’s invoice. No additional accreditation required on your end.
Option 2 — Become an Accredited Provider Yourself
You can apply directly to the ESC to become an Accredited Person (AP), allowing you to generate VEECs directly. This takes approximately 6–8 weeks minimum and involves training requirements, registry setup, and ongoing compliance obligations. Best suited to high-volume installers who want full control of the process.
Fastflex + 1st Energy Rebates: Fastflex is an official partner of 1st Energy Rebates, a fully accredited VEU provider who use the RebateM8 app to process rebate claims for installers. You supply and install — they handle all the paperwork, compliance, and certificate submission. Currently paying over $200,000 to installers every month. Call 03 9811 7043 or visit 1stenergyrebates.com.au/for-installers to register.
What Systems Are Eligible?
Under Activity 6 (Space Heating and Cooling), the following systems qualify — provided they’re on the ESC approved products list and installed in a property more than two years old:
| System Type | Eligible? | Typical Discount | Notes |
|---|---|---|---|
| Hi-wall split (replacing gas heater) | ✓ Yes | $500–$2,500+ | Higher discount when decommissioning gas |
| Ducted reverse cycle (replacing gas ducted) | ✓ Yes | $2,000–$5,530+ | Largest discounts available |
| Multi-split system | ✓ Yes | Varies | All indoor units must be same OEM as outdoor |
| Cassette air conditioners | ✓ Yes | Varies | Must be on approved products list |
| Evaporative coolers (cooling only) | ✗ No | — | Must provide both heating and cooling |
| Gas ducted heaters | ✗ No | — | Program favours electrification |
Important: The refrigerant’s Global Warming Potential (GWP) must be under 700. R32 systems are eligible. R410A systems (GWP ~2,088) are not eligible.
How Much Is the Discount Worth?
The discount amount varies based on:
- What’s being replaced — replacing a gas ducted heater generates far more VEECs than replacing an existing electric split system
- Current VEEC market price — 1st Energy Rebates’ current price is $55.00 ex-GST, but this fluctuates with the market
- System capacity and efficiency rating — higher star-rated, larger-capacity systems generate more certificates
- Property location — distance from the installer’s office can affect the net amount
As a rough guide for 2026, replacing a ducted gas heater with a high-efficiency reverse cycle system can attract upwards of $5,530 in discounts. Split system upgrades replacing gas wall heaters typically fall in the $500–$2,500 range.
Property and Customer Eligibility
Before quoting a VEU job, confirm the following:
- Property age — the building must have been completed more than two years ago
- Location — the property must be in Victoria
- Existing system — the unit being replaced must be connected to the building’s electrical circuit or gas supply
- Residential or commercial — both are eligible. Rental properties are also eligible — landlord and tenant should agree before proceeding
- One ducted unit per premises — residential properties are limited to one ducted RCAC unit per claim
There is no income test. Any Victorian homeowner, renter (with landlord agreement), or business can access the program.
Your Obligations as the Installer
Even when working through an accredited provider, the installer has specific compliance responsibilities. Getting these wrong can void the rebate or result in ESC action.
- Provide the customer with a copy of the VEU Space Heating and Cooling Consumer Fact Sheet before they agree to the upgrade — this is a hard requirement
- Properly decommission the old system where required — capping gas pipes to AS/NZS 5601.1, recovering refrigerant per ARCtick requirements
- Install only products on the ESC approved products list — always verify before ordering, not after
- Provide the customer with a minimum 5-year warranty against defects from date of installation (mandatory since 31 March 2025)
- Obtain a Certificate of Electrical Safety and retain all job documentation
- Ensure ductwork is in suitable condition for reuse — installing into degraded ductwork can be considered a compliance breach
Compliance warning: The ESC actively audits VEU installations. Accredited persons who create VEECs for ineligible activities risk having certificates surrendered, accreditation suspended or cancelled. Work only with VEU-approved products and follow decommissioning requirements to the letter.
How 1st Energy Rebates Makes This Easy
1st Energy Rebates is a fully accredited VEU provider and Fastflex’s official rebate partner. They handle 80% of the admin work involved in claiming rebates — so you can keep doing what you do best.
Their purpose-built RebateM8 app makes lodging claims fast and straightforward, with a personal dashboard for live updates on VEU news, program changes, and newly approved products. Services include training and onboarding, hands-on admin support, marketing assistance, and regular product updates — all included.
As a Fastflex trade customer, you’re already connected to this partnership. Register at 1stenergyrebates.com.au/for-installers or call 03 9811 7043.
VEU-Eligible Products at Fastflex
Fastflex stocks a comprehensive range of VEU-eligible R32 reverse cycle systems. Use the VEU Registered filter on our website to find eligible products directly.
- Mitsubishi Heavy Industries (MHI) — hi-wall splits, ducted, cassette and floor console systems with VEU approval across the range
- Haier — strong range of R32 hi-wall splits and multi-splits with VEU-eligible models
- Hitachi — wall-mounted splits, ducted systems and cassettes with VEU approval across multiple models
- Fujitsu General — extensive R32 split system range with VEU-eligible options
- Hisense and TCL — cost-effective split system options with VEU-eligible R32 models
Always verify a specific model is on the ESC approved products list before quoting. Call the Fastflex trade team on 03 9464 5400 for help confirming eligibility on specific SKUs.
Common Mistakes That Kill the Rebate
- Installing a product not on the ESC approved list — always check before ordering
- Failing to provide the consumer fact sheet before the agreement is signed
- Not properly decommissioning the old system — gas lines must be capped, refrigerant recovered, and evidence retained
- Installing into a property less than two years old
- Using a multi-split where indoor units are from a different manufacturer than the outdoor unit
- Installing a cooling-only system — eligible systems must provide both heating and cooling
- Using R410A refrigerant — GWP is over 700 and not eligible
Ready to Start Offering VEU Rebates?
The VEU program runs until 2030 and the opportunity for HVAC installers has never been bigger — especially with the Victorian Government’s push toward electrification and new legislation requiring air conditioning in all rental properties by March 2027.
- Browse VEU-eligible products at Fastflex
- Register as an installer with 1st Energy Rebates
- Apply for a Fastflex trade account for wholesale pricing
Fastflex Heating and Cooling Supplies — 03 9464 5400 — 6 Bostock Court, Thomastown VIC