The VEU Program in 2026: What’s Actually New, What Hasn’t Changed, and What It Means for Your Rebate
The Victorian Energy Upgrades program has been quietly running since 2009, and most homeowners only encounter it once — when they’re quoted a discount on an air conditioner or heat pump and told it’s “through VEU.” Here’s what’s actually changed recently, and a few things that trip people up regardless.
It isn’t going anywhere — in fact, it’s been extended
In May 2025, Victorian Parliament passed the Victorian Energy Efficiency Target Amendment (Energy Upgrades for the Future) Bill, extending the program’s end date from 2030 out to 2045, in line with the state’s net zero target. If you’ve seen older content suggesting the program was winding down, that’s no longer accurate — it’s been given a 15-year extension and a broader mandate.
The 2026 and 2027 targets, and what they mean for rebate value
The program’s targets for 2026 and 2027 have been set at 4.4 million and 4.6 million VEECs (Victorian Energy Efficiency Certificates) respectively — lower than the 2025 level, deliberately, as the program recalibrates toward higher-value electrification upgrades rather than volume. The practical takeaway for homeowners: VEEC market value moves with supply and demand, which is why the dollar value of a VEU rebate on the same product can shift from one quarter to the next. It’s not a scam or a bait-and-switch when a quote changes slightly — it reflects a genuine market mechanism.
New activities added to the program
Recent updates to the VEU Registry added a ceiling insulation activity, a commercial and industrial solar PV activity, and a commercial and industrial heat pump water heater activity, alongside updates to the induction cooktop activity and clarified rules for lighting control device combinations. If your last VEU quote was more than a year or two old, it’s worth asking what’s newly eligible — the list has genuinely grown.
No income test — and that’s often confused with Solar Victoria
This is one of the most common mix-ups: VEU has no household income restriction. Anyone can access a VEU-eligible upgrade regardless of income. The income cap that does exist — currently $210,000, tightening to $150,000 from 1 July 2026 — applies to the separate Solar Victoria Solar Panel and Hot Water rebates, not VEU. The two programs can often be combined on the same job, but they’re assessed under different rules.
What actually makes you eligible
- The work must be carried out by an accredited provider (an “Accredited Person” under the scheme) — ask for their accreditation number and check it if you’re unsure.
- The specific product installed must be on the current VEU approved products register, not just a similar model.
- For replacement activities, the old appliance generally needs to be decommissioned as part of the job.
- A minimum customer contribution typically applies — VEU has never funded a fully “free” installation, regardless of how a quote is marketed.
For the fuller eligibility breakdown, see our earlier posts
Who Qualifies for the Victorian Energy Upgrades Program and
Who Is Eligible for the Heating Rebate Under the VEU Program, and on choosing an installer,
The Role of VEU Accredited Providers in Promoting Energy Efficiency.
Combining VEU with other incentives
VEU can generally be stacked with the Solar Victoria Solar Panel Rebate and Hot Water Rebate on the same project, and separately with the federal Cheaper Home Batteries Program if a battery is part of the job. Combining upgrades into a single project also tends to streamline the paperwork, since applications for each program can be lodged in parallel rather than one after another. We go through the mechanics of this in
Combining VEU Rebates With Other Energy Efficiency Incentives in Melbourne.
One thing installers are watching, that flows through to you
Program fees paid by accredited providers changed from 1 January 2026 — the certificate creation fee rose from $2.33 to $4.35, while some other fees (like late accreditation renewal) actually dropped. This is largely an industry-side detail, but it’s part of why rebate quotes can vary slightly between providers even for the same product.
