Complete Guide to Victorian Government Reverse Cycle Air Conditioning Rebates 2025
The Victorian Government’s rebates for reverse cycle air conditioners are helping homeowners and businesses access energy-efficient heating and cooling at more affordable rates.
While some may call these rebates “free offers,” it’s essential to understand that the program provides financial assistance—not completely free installations.
This guide will walk you through everything you need to know about these rebates, their purpose, and how reverse cycle systems can help you save on energy costs.
We’ll dive into the types of reverse cycle air conditioners covered under the Victorian Energy Upgrades (VEU) program, compare options like split and ducted systems, discuss costs, and outline the installation process.
Whether you’re planning to upgrade or just exploring your options for an eco-friendlier and cost-effective home, this guide has all the details you need to make an informed decision.
What is a Reverse-Cycle Air Conditioner?
A reverse cycle air conditioner is an energy-efficient and versatile solution designed to keep your Melbourne home comfortable all year round.
As the name suggests, this system can reverse its function, providing both heating in winter and cooling in summer based on your needs.
Unlike traditional air conditioners, which are typically built for cooling only, reverse cycle systems extract heat from the outside air to warm your home in winter and remove indoor heat to cool it in summer, ensuring comfort throughout the seasons.
One of the standout benefits of reverse cycle air conditioners is their remarkable energy efficiency—300-600% more efficient compared to the conventional setup in many Australian households, which often rely on ducted gas heating and separate cooling systems.
Types of Reverse Cycle Air Conditioners Available Under the VEU Program:
- Single-Split Systems: Featuring one outdoor unit connected to one indoor unit, these are perfect for heating or cooling individual rooms.
- Multi-Split Systems: With one outdoor unit linked to multiple indoor units, this option is ideal for heating or cooling several rooms.
- Ducted Systems: A central outdoor unit connected to indoor spaces via ducts and vents, providing efficient heating or cooling for your entire home.
Choose a reverse cycle air conditioner that best fits your needs and enjoy year-round comfort with energy savings, supported by the Victorian Energy Upgrades (VEU) program.
Who Is Eligible for the Victorian Air Conditioner Rebates?
If you’re a resident or business owner in Victoria, you are automatically eligible for the Victorian Energy Upgrades (VEU) rebate for split or ducted air conditioning systems.
- The program is open to both homeowners and tenants.
- There are no income requirements.
- The only condition is that your property must be over 2 years old.
How Much Rebate Can You Qualify For?
Below is an overview of the rebates available under the VEU program based on the type of air conditioner and your current system:
Installing an Efficient Room Reverse Cycle Air Conditioner
Current System | Upgrade System | Approximate Discount |
---|---|---|
Ducted (whole-of-home) gas heater | 4 split systems (1 x 8kW + 3 x 3kW) | Up to $2,520 |
Ducted (whole-of-home) gas heater | Multi-split system (1 x 10kW outdoor unit) | Up to $2,800 |
Non-ducted (room) gas heater | 3kW to 9kW | $560 to $1,400 |
Non-ducted reverse cycle air conditioner | 3kW to 9kW | $210 to $490 |
No decommissioned product | 3kW to 9kW | $70 to $280 |
Installing an Efficient Ducted Reverse Cycle Air Conditioner
Current System | Upgrade System Size | Approximate Discount |
---|---|---|
Central electric resistance ducted heater | 10kW to 22.4kW | $5,040 to $7,700 |
Ducted gas heater | 10kW | Up to $2,450 |
15kW | Up to $3,500 | |
22.4kW | Up to $5,180 | |
Ducted reverse cycle air conditioner | 10kW | $630 to $700 |
15kW | $910 to $1,260 | |
22.4kW | $1,190 to $1,680 | |
No decommissioned product | 10kW to 22.4kW | $210 to $700 |
Climate Green Melbourne can guide you through the rebate process and help you choose the right system for your home
Source: Victorian Energy Upgrade
Energy Savings with Reverse Cycle Air Conditioning Rebates
Reverse cycle air conditioners are among the most energy-efficient and cost-effective heating options for Victorian homes.
According to data from Sustainability Victoria, households can save up to 72.37% annually by switching from a ducted gas heating system to a reverse cycle air conditioner for heating.
The chart below highlights the annual energy costs associated with different heating options across various floor areas, emphasizing the superior efficiency of reverse cycle systems.
Heating Running Costs in Victoria
Heating Type | Energy Star Rating | Annual Energy Cost |
---|---|---|
Multi-Split Reverse Cycle AC | Standard | $63 |
Multi-Split Reverse Cycle AC | High Efficiency | $40 |
Ducted Gas Heating (3 Star) | – | Higher Costs |
Ducted Gas Heating (6 Star) | – | Higher Costs |
Gas Hydronic Heating (Rating A) | – | Higher Costs |
Gas Hydronic Heating (Rating C) | – | Higher Costs |
Cooling Costs in Victoria
While evaluating cooling systems, multi-split reverse cycle air conditioners stand out with lower annual costs compared to ducted refrigerative systems. However, ducted evaporative cooling systems are the most affordable to run but may not perform well in humid climates.
Cooling Type | Energy Star Rating | Annual Energy Cost |
---|---|---|
Multi-Split Reverse Cycle AC | Standard | $63 |
Multi-Split Reverse Cycle AC | High Efficiency | $40 |
Ducted Refrigerative AC (not zoned) | Standard | $79 |
Ducted Refrigerative AC (not zoned) | High Efficiency | $55 |
Ducted Evaporative Cooling | Standard | $15 |
Ducted Evaporative Cooling | Inverter | $9 |

Why Choose Cimategreen For Reverse Cycle Air Conditioner ?
Reverse cycle air conditioners, on the other hand, offer reliable performance year-round, providing effective cooling in summer and efficient heating in winter—making them the ideal choice for Melbourne’s variable climate.
For tailored advice on heating and cooling solutions, Climate Green Melbourne is here to help!
At Climate Green Melbourne, we’re dedicated to providing expert, unbiased advice to help you choose the ideal air conditioning system for your home.
We partner with leading brands like Midea, Daikin, Panasonic, and more, ensuring you find the perfect solution tailored to your needs. To help you make an informed decision, check out our quick guide to comparing air conditioner brands.
With countless 5-star reviews from happy customers, we’ve built a trusted reputation for delivering energy-efficient installations across Melbourne and Victoria.
We also make it easier for you to benefit from the Victorian Government’s Reverse Cycle Air Conditioning Rebates helping you save on your upgrade.
From selecting the right system to managing all the paperwork and rebates, our team is here to ensure a seamless, stress-free experience from start to finish.