Government Rebate for Heating and Cooling in Melbourne
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Major Benefits
Living in Melbourne or Victoria, you know that dealing with extreme weather fluctuations is just part of life. The summer heat and winter chills can make your home feel unbearable without the right air conditioning or heating system.
If your old unit is no longer cutting it, constantly breaking down or pushing up your energy bills, it might be time to replace it with a more efficient model.
But we agree that buying a new air conditioner or heating system can be expensive. The Victorian Energy Upgrades (VEU) program offers substantial rebates to help you upgrade to more energy-efficient heating and cooling in Melbourne, ultimately saving you money in the long run.
If you've recently heard about this rebate but are not sure how it works, who qualifies or how much you can save, you're in the right place. This guide breaks it all down, ensuring you have all the information you need to make the best decision for your home or business.
Table of Contents
- What Is the Victorian Government Rebate?
- Rebates on Different Types of Air Conditioning Systems
- How Much Can You Save? (Rebate Breakdown)
- Who Is Eligible For This Air Conditioning Rebate in Melbourne?
- What’s the Minimum You Need to Pay?
- How to Apply for the Government Rebate in Melbourne?
- Common Mistakes to Avoid While Applying for VEU Rebates in Melbourne
- Final Thoughts – Upgrade & Save with EcoOrigin
- Frequently Asked Questions
The government rebate, also known as the Victorian Energy Upgrades (VEU) program, is an initiative by the Victorian government that provides financial incentives to households and businesses to switch to more energy-efficient appliances. The goal is to reduce energy costs and carbon emissions while making sustainable choices more accessible for everyone.
Under this Victorian energy rebate, you can receive a rebate on energy-efficient heating and cooling systems, making the switch to a more efficient unit significantly cheaper.
For instance — instead of paying full price for an energy-efficient reverse cycle ducted heating and cooling system or a split system heating and cooling aircon, eligible customers can get significant discounts by applying for air conditioning rebate.
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The VEU program covers a variety of heating and cooling systems that are energy-efficient and make a real difference in reducing power use. So, let’s break down the types of systems you can install (or upgrade to) and claim this rebate.
Split System Heating and Cooling
Split systems are super popular in Victorian homes. You’ve probably seen them—one indoor unit mounted on a wall, connected to an outdoor compressor. They’re perfect for single rooms or open-plan spaces and are relatively easy to install. Under the VEU program, you can claim a rebate when you replace an old, inefficient split system with a new reverse-cycle model that meets the program’s energy-efficiency standards. If you have more than one unit at home, you can claim rebates for each eligible installation—as long as the previous ones were inefficient and haven’t already been replaced under the program recently
Reverse Cycle Ducted Heating and Cooling
If you're looking to control the temperature across your entire home/commercial property, ducted reverse-cycle systems are the way to go. These setups involve ducts installed in the ceiling or floor, distributing warm or cool air throughout multiple rooms. While the cost is higher, they offer better control and consistency. The good news? Rebates are available when you upgrade from older ducted systems to high-efficiency reverse-cycle models listed under the VEU product registry. You’ll just need to make sure all program conditions are met during installation.
Multi-Split Systems
Need to cool different rooms but don’t want multiple outdoor units cluttering your walls? Multi-split systems solve that. They use a single outdoor unit connected to multiple indoor ones, making them ideal for homes with varying cooling needs—or businesses with multiple rooms to cover. They're more energy-efficient than running several independent systems and yes, they’re also eligible for rebates under the VEU program, provided the old systems being replaced were inefficient and the new setup meets program criteria.
Variable Refrigerant Flow (VRF) Systems
VRF systems are the go-to solution for large commercial buildings. They allow different areas to be cooled (or even heated) at different temperatures simultaneously, which makes them super-efficient and cost-effective in the long run. Businesses that switch from outdated systems to VRF technology can claim significant rebates under the VEU program. Again, eligibility hinges on using approved systems and following the correct installation process.
Now all of the above might sound a little intimidating. How do you know if your current heating and cooling system is inefficient? How do you ensure that the heating and cooling services provider that you reach out to knows how to claim the rebate and pass on the benefits to you? And this is where we can help. The team at EcoOrigin has worked with over 30,000 homes and over 17,500 businesses in and around Melbourne in Victoria to help them upgrade their old systems at minimal costs by claiming VEU rebates. We are experts in providing all kinds of air conditioning solutions and in guiding our customers through what might seem like a complicated system of benefiting from rebates. Read on to find out how much you can save from these VEU rebates.
The amount you save depends on what system you currently have and what you’re upgrading to. To make things super clear, here’s a detailed rebate table:
1. Installing an Energy-Efficient Room Reverse Cycle Air Conditioner
2. Installing an Energy-Efficient Ducted Reverse Cycle Air Conditioner
Choosing an energy-efficient air conditioner is key to maximising your savings. If you're unsure about which model to go for, our guide on Top 10 Air Conditioners in Australia can help you compare the best options available.
Almost everyone in Melbourne and all of Victoria is eligible for this air conditioning rebate including residential properties and commercial properties. However, certain conditions need to be met to be eligible for the rebate.
Here are the eligibility requirements for both residential and commercial properties in Melbourne to qualify for the Victorian Energy Upgrade rebates.
- The rebate applies only to VEU-approved air conditioning systems (ducted and non-ducted RCACs).
- If you’re replacing an existing heating or cooling system, the property must be more than two years old.
- Rental properties qualify too! Landlords and tenants can work together to upgrade inefficient heating and cooling units.
With energy costs skyrocketing, there’s never been a better time to switch to an energy-saving system while rebates are still available. And we can help!
While the VEU rebate covers a large portion of the cost, there’s still a minimum customer contribution. Here’s what you need to pay upfront for different systems :
- $200 (inc. GST) per unit for all non-ducted RCACs under 10kW
- $1,000 (inc. GST) per unit for all non-ducted RCACs over 10kW
- $1,000 (inc. GST) per unit for all multi-split and ducted RCACs (Reverse-cycle air conditioner)
These are base costs and the final price will depend on factors like installation costs, system size and provider fees. That’s why choosing the right accredited provider is crucial to getting the best deal possible.
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Applying for the VEU rebate can be simple, as long as, you follow these steps :
1) Find the right VEU-accredited provider, like EcoOrigin.
2) Choose an approved heating and cooling system.
3) Fill out the form your accredited provider gives.
4) Get your system installed.
To read more in detail on how to apply for a government rebate in detail, please read this blog👇
Victorian Energy Rebate explained & How to Apply?
While the VEU rebate process is pretty straightforward, many people in Melbourne still miss out on benefits—or worse, get their applications rejected—because of a few common slip-ups. Here’s what you need to watch out for:
1. Not checking if your provider is VEU-accredited
You can only claim the rebate through an accredited provider under the VEU program. If your provider isn’t officially approved, you won’t be eligible—no matter how efficient the system is. Always confirm their accreditation upfront to avoid missing out or being scammed.
2. Using a non-accredited installer
You must use an installer who is accredited under the VEU scheme. If you get your system installed by a random local tradie who isn’t part of the program, you can’t claim the rebate—no matter how energy-efficient the unit is.
3. Missing paperwork or poor documentation
You’ll need ID, property proof, energy bills, VEEC forms etc. to apply for the rebate. If your paperwork is incomplete or inaccurate, your rebate may be delayed or denied.
4. Assuming all systems qualify
Not all air conditioners are eligible. Even if a system is energy-efficient, it needs to be officially approved by the VEU program. Always cross-check with the product list or ask your installer to confirm.
5. Forgetting about property age limits
For residential/commercial rebates, the property must be more than two years old. This rule often gets overlooked, especially in newly developed areas around Melbourne.
Avoiding these slip-ups can help make your rebate journey smooth and stress-free—and save you a decent chunk of cash in the process.
Upgrading your heating and cooling system has never been this affordable. With rebates of up to $8000 , the VEU program is an opportunity you don’t want to miss.
To make the switch hassle-free, EcoOrigin, a trusted VEU-accredited provider, offers:
✅ Free site assessments
✅ Lowest installation costs
✅ Fast and smooth processing of rebates
Don’t wait—rebates won’t last forever! Contact EcoOrigin today and start saving. Click here to book your free assessment!
1. What is the $2,600 energy rebate in Victoria?
It’s a VEU rebate for switching from a ducted gas heater or evaporative cooler to an energy-efficient reverse cycle air conditioner. The exact amount depends on the upgrade.
2. What is the Victoria energy rebate?
The Victoria energy rebate offers discounts on air conditioners, hot water systems and heaters under the VEU program.
3. What is the AC rebate in Victoria 2025?
In 2025, rebates for reverse cycle air conditioners will continue under the VEU program. Discounts vary based on system size and the type of upgrade. Using an approved product and an accredited provider is required.
4. Who is eligible for the Victorian heating and cooling rebate?
All Victorian households and businesses can apply but you must upgrade to an approved energy-efficient system. If replacing an old unit, your property must be over two years old.
5. Can renters apply for the heating and cooling rebate in Victoria?
Yes! Renters can get the rebate but the landlord must approve the upgrade. It’s best to discuss the benefits with them, as energy-efficient systems add value to the property.
6. How much does a reverse cycle air conditioner cost after the rebate?
It depends on the system size and type of upgrade. With rebates, prices can drop by thousands but a minimum customer contribution applies—starting from $200 for smaller units.
7. How long does it take to get the Victorian energy rebate?
The process is usually fast but timing depends on your accredited provider. Some handle everything—including installation—so you can get your rebate without delays.
