The Victorian government offers thousands in rebates for people to upgrade their cooling and heating to split systems. VEU Split system rebates could save you up to $8,000 by upgrading from gas-ducted systems to energy-efficient electric split systems in Victoria.
Michael Stillman, owner of Max Power Electrical, says of split systems, ‘They are very popular now. Cost-wise, they are very efficient, pretty cheap to install, and you are not looking at $20,000 to replace a ducted gas system. Split systems cost $2000 to install in your lounge room and under $2000 in bedrooms (including the unit’s price). They will give you relief in summer and heat in winter.’
So if the upfront cost of installing a split system has been putting you off, then the rebates are going to help you bring that upfront cost down. Not to mention the average savings of using split systems powered by electricity saves households between $120 and $1,100 on energy costs each year.
The Victorian Energy Upgrades (VEU) program delivers more than just money savings. It aims to cut greenhouse gas emissions by 28 million tonnes from 2022 to 2025. These cuts equal taking more than 8.5 million cars off the road for a year. Read on to see how homeowners and business owners get the most from their rebates and help create a more eco-friendly Victoria.
Understanding the VEU Split System Rebate
The Victorian Energy Upgrades (VEU) program serves as the centre of Victoria’s energy efficiency initiative that helps Victorians reduce their power bills and greenhouse gas emissions. VEU Split system rebates work as a discount. Many homeowners think this is a rebate, but it works as a discount applied directly to your purchase.
Installing an Efficient Reverse Cycle Air Con
| Current system | Upgrade system size | Indicative discount* |
| Hard-wired electric resistance room heater | 3kW to 9kW | Up to $840 |
| Ducted (whole-of-house) gas heater | 4 split systems installed:1 x 8kW3 x 3kW | Up to $2,520 |
| Ducted (whole-of-home) gas heater | Multi-split system:1 x 10kW outdoor unit | Up to $2,940 |
| Non-ducted (room) gas heater | 3kW to 9kW | $630 to $1,610 |
| Non-ducted reverse cycle air conditioner | 3kW to 9kW | $210 |
| No decommissioned product | 3kW to 9kW | $70 to $140 |
Installing an Efficient Ducted Reverse-cycle Air Conditioner
| Current system | Upgrade system size | Indicative discount* |
| Central electric resistance ducted heater | 10kW to 22.4kW | Up to $5,460 |
| Ducted gas heater | 10kW16kW22.4kW | Up to $2,520 Up to $4,200 Up to $5,530 |
| Ducted reverse cycle air conditioner | 10kW16kW22.4kW | Up to $490 Up to $770 Up to $910 |
| No decommissioned product | 10kW to 22.4kW | Up to $410 |
For Business
Installing an Efficient Reverse Cycle Air Conditioner
| Current system | Upgrade system size | Indicative discount* |
| If 4 split systems are installed in total: One x 8kWThree x 3kW | 3kW to 9kW | Up to $490 |
| Ducted gas heater | Multi-split system: One x 10kW outdoor unit | Up to $1,680 |
| Ducted gas heater | Multi-split system:One x 10kW outdoor unit | Up to $1,820 |
| Non-ducted gas heater | 3kW to 9kW | $420 to $1,050 |
| Non-ducted reverse cycle air conditioner | 3kW to 9kW | $210 to $490 |
| No decommissioning | 3kW to 9kW | $70 to $140 |
Installing an Efficient Ducted Reverse Cycle Air Con
| Current system | Upgrade system size | Indicative discount* |
| Central electric resistance ducted heater | 16kW to 56kW | Up to $4,060 |
| Ducted gas heater | 16kW25kW32kW56kW | Up to $2,590 Up to $3,850 Up to $6,230 Up to $8,820 |
| Ducted reverse cycle air conditioner | 16kW25kW32kW56kW | Up to $910 Up to $1,400 Up to $3,010Up to $3,290 |
| No decommissioning | 16kW to 56kW | Up to $1,820 |
What is the Victorian Energy Upgrades Program?
The VEU Split system rebates program uses a certificate-based system. Accredited providers (Max Power is accredited) create Victorian Energy Efficiency Certificates (VEECs) that represent each tonne of greenhouse gas kept out of our atmosphere. Energy retailers buy these certificates to meet the Victorian Government’s annual emissions targets. The money from these sales funds your discounts and rebates as a consumer. If this sounds confusing, don’t worry, our team takes care of all this for you and will get the biggest discount available to you.
The program started a mission in 2009 to save 28 million tonnes of greenhouse gas emissions between 2022 and 2025. On top of that, it supports energy-efficient technology development and creates more jobs which encourages more growth in the energy-efficiency market. That is the top-down look at why the VEU was created, but as a leading Melbourne split system installer, we know the interest for homeowners and businesses lies with the rebates and discounts on offer.
How the VEU Split System Rebates Work
The VEU Split system rebates program includes split system air conditioners under ‘Activity 6: Installing a high-efficiency air conditioner’. The quickest way to get your incentive happens right at purchase—you won’t need to ask for a rebate later. And our team will let you know the discount.
Your discount amount changes based on these factors:
- The current price of Victorian Energy Efficiency Certificates
- Your location
- The specific air conditioner unit selected
- Number of indoor units installed
Note that the program needs minimum customer contributions, which means you can’t get products completely free. You must pay at least $305.80 (inc. GST) for non-ducted reverse cycle air conditioners under 10kW or $1,528.99 for those over 10kW.
Who Qualifies for the Rebate?
The program benefits almost everyone in Victoria. All Victorian households and businesses can get these discounts. Homeowners need a property at least two years old and must replace an existing system.
Rental properties qualify, too, but tenants should work with their landlords about installation, costs, and paperwork. Commercial properties with valid ABNs can access these rebates as well. Your chosen air conditioner must meet specific requirements—it needs to be listed in the VEU program’s Register of Products and must comply with the Greenhouse and Energy Minimum Standards. Every split system in our range will qualify for the rebate.
Replacing Gas Ducted Systems
You’ll get the biggest rebate opportunities by switching from gas-ducted heating to energy-efficient electric alternatives. Homeowners can get incentives of around $8,000 when they replace gas-ducted systems with energy-efficient electric split systems. This is the highest rebate amount available under the VEU program.
The savings are substantial in these specific scenarios:
- You can get discounts up to $3,853.06 by replacing a ducted gas heater with four split systems (one 8kW and three 3kW)
- A 10kW multi-split system upgrade from a ducted gas heater gives you discounts reaching $4,200
- Your rebates can range between $3,750 and $7,900 when converting to a ducted reverse cycle system, based on system size
Multi-Head Split System Rebate
Multi-head systems give you flexible zone control throughout your home by connecting several indoor units to a single outdoor unit. These systems qualify for significant VEU discounts.
Multi-head split systems are a great way to get both efficient heating and cooling while qualifying for higher rebate amounts. Victorian homeowners can enjoy comfortable temperatures year-round with substantial upfront savings.
The VEU program’s minimum customer contribution is $1,528.99 (inc. GST) per product for all multi-split systems. This ensures you get substantial value while the program maintains its integrity.
Step-by-Step Application Process
Getting your split system air conditioning rebate through the Victorian Energy Upgrades program requires a specific process. The right approach will give you the maximum discount without much hassle.
Finding Accredited VEU providers
Your first step is to connect with an accredited provider authorised to perform installations under the VEU program. Max Power Electrical is an accredited provider, and we are in the process of being added to the list on the government website.
Documentation Requirements
Your application needs these important documents:
- Valid photo identification
- Proof of property ownership or occupancy
- Current energy bills
- Signed VEEC assignment form
- Property assessment documentation
These documents help create Victorian Energy Efficiency Certificates and verify your eligibility. Your VEU provider’s nomination form needs your signature before installation starts—you won’t get reimbursements for completed work. Again, as the expert split system installers in Melbourne, we know what to do and will take care of everything we can for you, and if we can’t do it, we will let you know exactly what to do.
Installation and Verification Process
You can schedule your installation date once the paperwork is complete. A licensed air conditioning technician will:
- Install your new split system
- Demonstrate how to operate it correctly
- Safely dispose of or recycle your old unit if being replaced
- Provide warranty information
Your provider will check the installation against VEU standards. They submit the job to the program administrators after verification. Your rebate is processed once VEECs are issued.
Real Cost Savings Breakdown
The split system air conditioning rebate offers financial advantages way beyond the reach and influence of purchase discounts. A clear understanding of all costs helps you make smart decisions about this energy-efficient upgrade.
Upfront Rebate Calculations
Victorian split system rebates provide substantial upfront savings that vary based on your situation. Homeowners who replace gas ducted systems can receive rebates up to $9,000. The transition becomes much more budget-friendly with these specific rebate amounts:
- Up to $3,850 when replacing a ducted gas heater with four split systems
- Between $2,290 and $9,000 to upgrade to energy-efficient reverse cycle units
- Up to $4,495 to switch from ducted gas heating to a multi-split system
Your final discount depends on your chosen model, your home’s location, installation complexity, and current VEEC certificate pricing. It’s worth mentioning that customers must contribute at least $305.80 for non-ducted units under 10kW and $1,528.99 for larger systems.
Long-term Energy Bill Reductions
Your investment continues to pay off through lower energy costs after the original rebate. Victorian households spend about $1,220 yearly on heating, which makes up one-third of their energy bill. The upgrade to energy-efficient air conditioning brings:
Yearly savings are between $180 and $1,680 on energy bills, based on your previous system and usage patterns. Households that replace gas-ducted systems with split systems can save $610 to $1,220 each year.
Return on Investment Timeline
Upfront rebates combined with ongoing energy savings create a strong investment case. Split systems might need higher initial costs compared to other heating options, but the long-term economics work in your favour.
The rebate cuts down the payback period by covering much of the upfront cost for many homeowners. Energy-efficient systems can boost your property’s value, which appeals to buyers who watch their energy costs.
Lincoln, a VEU program participant, shares his perspective: ‘If my bills work out to be cheaper in the end, I don’t mind the upfront cost’. His view shows how Victorians understand that energy efficiency investments bring both immediate and lasting financial rewards.
Conclusion
Victorian homeowners and businesses can get split system air conditioning rebates through the VEU program. The original cost might look high, but government incentives combined with annual energy savings of $120 to $1,100 make this upgrade worth the investment.
Switching from gas-ducted systems to energy-efficient electric options will pay off. Your property gets immediate rebates and helps Victoria reach its goal to cut greenhouse gas emissions by 28 million tonnes.
Timing is a vital factor in claiming these rebates. Program incentives usually drop as more people sign up, so quick action will give you the best benefits. On top of that, good planning helps you maximise your VEU claims and your property’s energy efficiency.
Note that working with accredited providers and proper documentation is a great way to get results. The process needs attention to detail, but your investment brings lasting value – lower energy bills, higher property value, and a cleaner environment for your home or business.
And remember, we are the experts in split systems. So we can recommend the best one for your home and get you the best discount/rebate available!
FAQs
Q1. How much can I save with the Victorian split system air conditioning rebate?
You can save up to $8,000 when upgrading from gas-ducted systems to energy-efficient electric split systems. Additionally, participating households can save between $120 and $1,100 annually on energy costs.
Q2. Who is eligible for the Victorian Energy Upgrades (VEU) program?
Almost all Victorian households and businesses are eligible for the VEU program discounts. For homeowners, your property must be at least two years old, and you need to be replacing an existing system. Private rental properties and commercial properties with valid ABNs also qualify.
Q3. What’s the best way to maximise my split system rebate amount?
To maximise your rebate, consider replacing gas-ducted systems with energy-efficient electric alternatives, as this offers the highest savings. Also, multi-head split systems qualify for significant discounts. Acting promptly is crucial, as rebate amounts tend to decrease over time.
Q4. What’s the process for applying for the split system rebate?
First, find an accredited VEU provider. Then, prepare the necessary documentation, including valid ID, proof of property ownership, and current energy bills. After the paperwork is finalised, schedule the installation. The provider will then audit the installation, submit the job for approval, and process your rebate if approved.
Q5. What temperature should I set my air conditioner?
For optimal energy savings, set your air conditioner to the highest comfortable temperature, typically around 20-25°C in summer. This allows your body to regulate temperature naturally and reduces strain on the unit. In winter, aim for a temperature range of 18-20°C for reverse-cycle heating.
