Air Conditioning Rebates in Melbourne: What’s New in 2025?
Major Benefits
Upgrading to an energy-efficient air conditioning system in Melbourne has become increasingly advantageous, thanks to enhanced government rebate programmes in 2025. These initiatives aim to reduce energy consumption and costs for both homeowners and businesses. Whether you're considering a split system reverse cycle air conditioner or a ducted heating and cooling system, understanding how to maximise these rebates can lead to substantial savings. Here's a comprehensive guide to the latest rebate options, application steps and common drawbacks to avoid.
Table of Contents
- What are Air Conditioner Rebates in 2025
- Benefits of Air Conditioner Rebate in 2025
- Eligibility Requirements for the Air Conditioner Rebate
- How to Apply for the Air Conditioning Rebate
- How to Maximise Your Savings in 2025
- Common Mistakes to Avoid When Applying for Rebates
- Rebates for Households
- Rebates for Businesses
- Victorian Energy Upgrades (VEU) Programme Updates in 2025
- How to Choose the Right Air Conditioner to Maximise Energy Savings
- Upgrade Your Air Conditioner System with EcoOrigin
- Conclusion
- FAQs
Air conditioner rebates are financial incentives from government programs, like the Victorian Energy Upgrades (VEU) program, designed to help homeowners install energy-efficient systems. These rebates typically apply to reverse-cycle air conditioners like split system reverse cycle air conditioners in Melbourne, which provide both heating and cooling while consuming less energy than traditional systems.
In 2025, air conditioning rebates continue to play a vital role in promoting energy efficiency. They help reduce energy consumption, lower energy bills and ensure more effective cooling. The VEU program encourages Victorians to replace outdated, energy-draining units with newer, energy-saving models. As the program evolves, it offers even more opportunities for residents to save and contribute to lowering greenhouse gas emissions.
In 2025, air conditioning rebates offer significant benefits for homeowners. The rebates help reduce the installation cost, making upgrading to energy-efficient systems more affordable. Energy-efficient air conditioners consume less power, leading to lower energy bills over time, especially for those replacing older systems. Upgrading also supports sustainability by reducing reliance on fossil fuels and lowering your carbon footprint. Government-backed rebates provide financial support, reflecting the commitment to energy efficiency and helping households transition to modern systems. Lastly, energy-efficient homes are more attractive to buyers, potentially increasing property value.
- All Victorian households and businesses are eligible to apply for discounts.
- Only VEU approved products can be installed.
- Eligible systems include a range of ducted and non-ducted Reverse Cycle Air Conditioners (RCACs).
- High-efficiency RCACs that provide both heating and cooling are eligible.
- If replacing an existing heating or cooling system, the property must be at least two years old.
Check Eligibility Before Purchase
Use the VEU programme’s online tool to confirm rebate eligibility.
Select a Qualified Energy-Efficient Product
Once you've confirmed your eligibility, it's time to pick a product that qualifies under the VEU program.
Hire an Accredited Installer
Make sure to hire an accredited provider like EcoOrigin to guarantee that your installation meets safety standards and performs at its best.
Apply for the Rebate Online
Once you've selected your product and installation is arranged, Accredited Providers like EcoOrigin will manage the entire rebate application process on your behalf, ensuring everything is completed correctly and submitted to the Victorian Energy Upgrades (VEU) programme.
Submit Your Documentation
Instead of requiring you to apply separately for the rebate, the accredited provider will apply the discount upfront, reducing the overall installation cost. The provider will handle all necessary documentation and submit it directly to the VEU programme.
Partner with Trusted Providers
Ensure you work with licensed businesses under programs like the VEU. Choosing reputable providers helps you to upgrade smoothly.
Select the Right System
Pick an air conditioner suited to your home's size, layout and heating/cooling needs. An improperly sized unit can lead to inefficiencies.
Act Fast
Air conditioning rebates often have limited funds or strict deadlines. Applying early increases your chances of securing savings.
Get in Touch with EcoOrigin
EcoOrigin is committed to helping you find the best energy solutions while maximising your savings. Book a free consultation and our experts will provide a personalised assessment of how energy-efficient upgrades can lower your energy consumption and costs. Once you’re ready, we’ll ensure a fast, hassle-free installation so you can start enjoying the benefits immediately.
Avoid these errors to ensure a smooth rebate application:
- Missing Paperwork: Prepare essential documents like ID, property proof, energy bills and VEEC forms ahead of time.
- Selecting Unapproved Systems: Only choose air conditioners listed under the VEU program for rebates.
- Not Claiming on Time: Some rebates have limited quotas, so apply as soon as possible.
- Working with Unverified Providers – Always verify your provider's accreditation to avoid scams or delays.
- Choosing the Wrong System Size – Ensure the system is suited to your space to avoid inefficiencies.
- Losing Important Records – Keep all necessary documentation, such as installation certificates and energy efficiency compliance for future reference.
1. Rebates for Installing an Efficient Room Reverse Cycle Air Conditioner
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- Replacing a Hard-Wired Electric Resistance Room Heater
- Rebate Amount: Up to $840
- What You Need to Do: Upgrade to a 3kW–9kW reverse cycle air conditioner.
- Replacing a Ducted (Whole-of-House) Gas Heater
- Rebate Amount: Up to $2,520
- What You Need to Do: Install four split systems – one 8kW unit and three 3kW units.
- Replacing a Ducted (Whole-of-Home) Gas Heater with a Multi-Split System
- Rebate Amount: Up to $2,940
- What You Need to Do: Upgrade to a 10kW outdoor unit with multiple indoor units.
- Replacing a Non-Ducted (Room) Gas Heater
- Rebate Amount: Between $630 and $1,610
- What You Need to Do: Install a 3kW–9kW reverse cycle air conditioner.
- Replacing a Non-Ducted Reverse Cycle Air Conditioner
- Rebate Amount: $210
- What You Need to Do: Upgrade to a more efficient 3kW–9kW reverse cycle air conditioner.
- Installing a New Reverse Cycle Air Conditioner (No Prior System)
- Rebate Amount: Between $70 and $140
- What You Need to Do: Install a 3kW–9kW energy-efficient unit where no previous system existed.
2. Rebates for Installing an Efficient Ducted Reverse Cycle Air Conditioner
- Replacing a Central Electric Resistance Ducted Heater
- Rebate Amount: Up to $5,460
- What You Need to Do: Upgrade to a 10kW–22.4kW ducted reverse cycle air conditioner.
- Replacing a Ducted Gas Heater
- Replacing an Older Ducted Reverse Cycle Air Conditioner
- Installing a New Ducted Reverse Cycle System (No Prior System)
- Rebate Amount: Up to $410
- What You Need to Do: Install a 10kW–22.4kW unit where no system existed before.
1. Rebates for Businesses Installing an Efficient Room Reverse Cycle Air Conditioner
- Replacing a Hard-Wired Electric Resistance Room Heater
- Rebate Amount: Up to $490
- What You Need to Do: Upgrade to a 3kW–9kW reverse cycle air conditioner.
- Replacing a Ducted Gas Heater (Installing Four Split Systems)
- Rebate Amount: Up to $1,680
- What You Need to Do: Install one 8kW unit and three 3kW units.
- Replacing a Ducted Gas Heater with a Multi-Split System
- Rebate Amount: Up to $1,820
- What You Need to Do: Upgrade to a 10kW outdoor unit with multiple indoor units.
- Replacing a Non-Ducted Gas Heater
- Rebate Amount: Between $420 and $1,050
- What You Need to Do: Install a 3kW–9kW reverse cycle air conditioner.
- Replacing a Non-Ducted Reverse Cycle Air Conditioner
- Rebate Amount: Between $210 and $490
- What You Need to Do: Upgrade to a more energy-efficient 3kW–9kW unit.
- Installing a New Reverse Cycle Air Conditioner (No Prior System)
- Rebate Amount: Between $70 and $140
- What You Need to Do: Install a 3kW–9kW energy-efficient unit where no system existed before.
2. Rebates for Businesses Installing an Efficient Ducted Reverse Cycle Air Conditioner
- Replacing a Central Electric Resistance Ducted Heater
- Rebate Amount: Up to $4,060
- What You Need to Do: Upgrade to a 16kW–56kW ducted reverse cycle air conditioner.
- Replacing a Ducted Gas Heater
- Replacing an Older Ducted Reverse Cycle Air Conditioner
- Installing a New Ducted Reverse Cycle System (No Prior System)
- Rebate Amount: Up to $1,820
- What You Need to Do: Install a 16kW–56kW energy-efficient system where no prior system existed.
Rebates for heating and cooling upgrades in Melbourne vary based on energy efficiency ratings and system size, with higher incentives available for units meeting strict efficiency criteria. In some cases, rebates can cover up to substantial part of the installation cost, significantly reducing upfront expenses and making energy-efficient systems more accessible for both households and businesses.
According to the official website of the Victoria state government, the Victorian Energy Upgrades (VEU) program is set to be expanded, continuing to support households and businesses in reducing energy costs through discounts on energy-efficient electric appliances. New legislation will extend the VEU program until 2045, providing long-term stability and encouraging Victorians to transition to energy-saving electric appliances while cutting down on energy bills.
The Victorian government is also conducting a strategic review of the VEU program to ensure it can effectively help Victorians lower their energy bills by transitioning to electric systems. This review will span the next two years. To maintain stability during this period, the government will set interim energy savings targets for retailers for 2026 and 2027, replacing the usual five-year targets. Long-term targets will be based on the recommendations from the review.
As part of the proposed reforms, the Essential Services Commission will gain enhanced enforcement powers, extending its oversight to include not just accredited providers but also installers. This will ensure better compliance and enhance the program's effectiveness as the state works towards more sustainable energy solutions.
With the current VEU legislation set to expire in 2030, the proposed extension will offer industries a clear path for investment and assist households in electrifying their systems as Victoria strives to achieve net-zero emissions by 2045.
Selecting the right reverse cycle split system air conditioner or ducted system can impact your amount of energy savings
Key Considerations for Maximising Energy Savings:
- Home size: Split systems suit smaller homes, while ducted heating and cooling systems work for larger spaces.
- Star rating: Higher efficiency equals more savings on energy bills
- Smart features: Systems with energy-saving technology may qualify for additional rebates.
NOTE: Our blog titled Ultimate Guide for Choosing the Right Size Air Con and Its Rebates is your ultimate guide to making an informed, cost-effective decision. From understanding whether a split system or ducted unit suits your home to decoding star ratings and energy-saving technology, we cover it all.
Ready to make the switch to a more energy-efficient air conditioner? EcoOrigin is here to help! With the latest government air conditioning rebates available in Melbourne for 2025, upgrading to a split system reverse cycle air conditioner or a ducted heating and cooling system has never been more cost-effective. Our team at EcoOrigin will guide you through the rebate process, ensuring you maximise savings while enjoying superior comfort. We provide you with accredited products that guarantee top-quality, energy-efficient heating and cooling systems. We take pride in our tailored solutions, where our dedicated team assesses your specific needs to ensure you receive the highest available rebates and energy certificates, maximising your savings and long-term efficiency.
Don’t miss out on the opportunity to reduce energy costs and enhance your home’s efficiency—contact EcoOrigin today to get started!
With rebate amounts increasing in 2025 and stricter efficiency requirements coming into play, now is the ideal time to upgrade your air conditioning system. Taking advantage of these programmes not only reduces your upfront costs but also leads to significant long-term savings on your energy bills. Claim these enhanced incentives to make your home or business more energy-efficient.
1. Are air conditioner rebates going to change in 2025?
Rebate programs may be updated based on government policies and energy efficiency targets. It’s best to check with your state’s energy department or approved suppliers for the latest information on rebate changes in 2025.
2. Is there a free air conditioning upgrade?
Some rebate programs, like the Victorian Energy Upgrades (VEU) program, may cover a significant portion of the cost, but full upgrades are rarely 100% free. Eligibility depends on factors like household income, property type and the chosen energy-efficient model.
3. What are the new AC rules for 2025?
In 2025, new AC rules may include stricter energy efficiency standards and possible restrictions on the sale of less-efficient models.
4. Will air conditioners be more expensive in 2025?
Due to stricter energy regulations and increasing demand, air conditioners could become more expensive in 2025.
5. Should I replace my 20-year-old air conditioner?
It is advisable to replace an old air conditioner with a more energy-efficient model, saving on running costs and improving comfort.
