If you are a Victorian homeowner wondering whether you can get a rebate on a new air conditioning system, the answer is yes — and the savings can be substantial. The Victorian Energy Upgrades (VEU) program makes it possible to upgrade to a high-efficiency reverse cycle air conditioner — including split systems, multi-split systems, and ducted systems — while receiving an upfront discount applied by your accredited installer at the time of purchase.

At Climate Green, we are a VEU-accredited provider helping households across Melbourne and Victoria access these rebates every day. This guide explains how the VEU program works for air conditioning, who qualifies, how much you can save, and how our team makes the entire process seamless from start to finish.

In This Article 1. What Is the VEU Program? 2. How Does the VEU Air Conditioning Rebate Work? 3. Who Is Eligible?4. Which Air Conditioning Systems Qualify? 5. Climate Green Services: Split, Multi-Split & Ducted 6. Gas Heating Replacement — The Biggest Rebate Opportunity 7. How Much Can You Save? 8. How to Claim Your VEU Rebate with Climate Green 9. Why Choose Climate Green? 10. Frequently Asked Questions

1. What Is the VEU Program?

The Victorian Energy Upgrades (VEU) program is a Victorian Government initiative that provides upfront discounts to households and businesses when they upgrade to energy-efficient products. The program has been active since 2009 and has been extended through to 2045, making it one of Australia’s most enduring residential energy efficiency schemes.

Rather than requiring you to apply for a refund after purchase, the VEU rebate is applied directly at the point of sale. Your accredited installer handles all the paperwork and lodges the required Victorian Energy Efficiency Certificates (VEECs) on your behalf — meaning you simply pay the reduced price and enjoy the upgrade.

Key Facts About the VEU Program No income test. No asset threshold. Available to all Victorian homeowners, tenants (with landlord approval), and landlords. Extended to 2045 by the Victorian Government. Rebate applied upfront — no reimbursement waiting period.

2. How Does the VEU Air Conditioning Rebate Work?

The VEU rebate for air conditioning works through a certificate trading system. When a registered provider like Climate Green installs an eligible energy-efficient reverse cycle system at your property, the energy savings generated by that upgrade are converted into Victorian Energy Efficiency Certificates (VEECs). These certificates are then sold to energy retailers who are obligated to purchase them under the scheme, and the value is passed on to you as an upfront discount.

In practical terms, this means:

• Step 1: You contact Climate Green and we assess your property and existing system.
• Step 2: We confirm your eligibility and recommend the right system for your home.
• Step 3: We supply and install your new energy-efficient reverse cycle air conditioner.
• Step 4: The VEU rebate is deducted from your invoice — you pay the discounted amount only.
• Step 5: Climate Green handles all certificate creation and lodgement on your behalf.

There is no paperwork for you to complete, no government portal to navigate, and no waiting for a cheque in the mail. The entire process is handled by our accredited team, making it as simple as possible for Victorian households.

3. Who Is Eligible for the VEU Air Conditioning Rebate?

The VEU program is deliberately broad in its eligibility. Unlike some federal government schemes, there is no means testing, no income threshold, and no cap based on your household assets. Eligibility is based primarily on your location and the type of system you are upgrading from.

You Are Eligible If:

• Your property is located in Victoria.
• You are a homeowner, a tenant with landlord approval, or a landlord upgrading a rental property.
• You are replacing an existing inefficient heating or cooling system (gas heater, old electric unit, or an ageing air conditioner).
• You choose an approved reverse cycle air conditioner and have it installed by a VEU-accredited provider like Climate Green.
• For businesses: a valid Australian Business Number (ABN) is all that is required.

Replacement vs New Installation

The VEU program offers its highest rebates when you are replacing an existing inefficient system — particularly old gas ducted heaters. If you are installing air conditioning in a space that has never had it before, a reduced rebate may still apply. Climate Green will assess your specific situation during your free quote and advise you on the level of discount available.

4. Which Air Conditioning Systems Qualify Under the VEU Program?

The VEU program covers reverse cycle air conditioning systems that provide both heating and cooling from a single appliance. This requirement for dual functionality ensures Victorian households maximise their year-round energy savings. The following system types are eligible:

System Type	VEU Eligible?
Reverse cycle split system (single)	Yes — moderate to high rebate
Multi-split system (multiple rooms)	Yes — high rebate
Ducted reverse cycle system	Yes — highest rebate available
Cooling-only air conditioner	No — must provide both heating and cooling

Climate Green supplies and installs all three eligible system types — single split systems, multi-split systems, and ducted reverse cycle systems. Our team will help you identify the right solution based on your home size, layout, and existing infrastructure.

5. Climate Green Services: Split System, Multi-Split & Ducted Air Conditioning

Climate Green is an accredited VEU provider offering the full range of reverse cycle air conditioning systems for Melbourne homes and properties across Victoria. Here is what we offer:

Single Split Systems

A single split system consists of one indoor unit and one outdoor compressor unit, making it ideal for cooling and heating a single room or open-plan living area. Split systems are the most common upgrade under the VEU program and offer a fast, cost-effective way to improve comfort in high-use rooms such as living areas, bedrooms, or home offices.

• Ideal for single rooms, studios, and apartments.
• Eligible for VEU rebates when replacing an old or inefficient unit.
• Installed by our CEC-accredited technicians across Melbourne and Victoria.
• Available in a range of capacities to suit room size.

Multi-Split Systems

A multi-split system uses a single outdoor compressor unit connected to multiple indoor units — typically two to five — across different rooms. This makes multi-split systems a highly efficient solution for households that want to heat and cool several rooms without the cost and complexity of a fully ducted installation.

• Heat or cool multiple rooms independently from one outdoor unit.
• No ductwork required — ideal for homes where ducted installation is impractical.
• Each indoor unit can be controlled separately, reducing energy wastage.
• VEU rebates available, particularly when replacing gas heating across multiple zones.

Ducted Reverse Cycle Air Conditioning

Ducted reverse cycle systems provide whole-home heating and cooling through a network of ducts installed in the ceiling or under-floor space. They are the most comprehensive and elegant solution for larger homes and attract the highest VEU rebates available — particularly when replacing a gas ducted heating system.

• Whole-home climate control from a single, discreet system.
• Zoning capability allows individual rooms or areas to be controlled independently.
• Highest VEU rebates available — up to thousands of dollars off installation cost.
• Replaces gas ducted heating, delivering significant running cost savings.
• Installed by our qualified technicians with full compliance documentation.

6. Gas Heating Replacement — The Biggest VEU Rebate Opportunity

If your home currently has a gas ducted heater or gas wall furnace, you are sitting on one of the largest rebate opportunities available under the VEU program. The Victorian Government has prioritised the electrification of home heating as part of its net-zero emissions strategy, meaning the incentives for replacing gas heating with efficient reverse cycle systems are at their highest.

Why Gas Heating Replacement Attracts the Highest Rebates Gas heaters are significantly less energy-efficient than modern reverse cycle systems. Replacing them with a ducted or multi-split reverse cycle system generates a large number of VEECs, which translates directly to a higher upfront discount for you. The Victorian Government is actively incentivising this transition as part of its commitment to reducing household gas dependency.

Benefits of Switching from Gas to Reverse Cycle

• Eliminate ongoing gas connection fees — many households save $200–$400 per year on supply charges alone.
• Reverse cycle systems are 300–600% efficient compared to gas heaters at approximately 90% efficiency.
• One system for both heating in winter and cooling in summer.
• No gas flue maintenance, no carbon monoxide risk, no open flame.
• Significant reduction in household carbon emissions.
• Energy bills cut by up to 50% compared to running an old gas system.

Climate Green manages the full decommissioning and removal of your existing gas heating system as part of our installation service. Our team ensures your gas connection is properly capped, your existing ductwork is assessed, and your new reverse cycle ducted system is commissioned and tested before we leave your property.

7. How Much Can You Save with the VEU Air Conditioning Rebate?

The exact rebate amount depends on several factors: the type of system you are installing, the size of the system, the efficiency rating, the system you are replacing, and current VEEC market prices. As a general guide, the following table shows typical VEU rebate ranges in 2026:

System Type	Replacing	Typical Rebate Range
Single split system	Old electric/gas unit	$200 – $1,500
Multi-split system (2–4 zones)	Gas heating or old units	$1,000 – $3,500
Ducted reverse cycle	Gas ducted heater	$2,000 – $8,000+

These figures reflect the VEU co-payment structure introduced from mid-2025, which requires a mandatory minimum co-payment from the homeowner. This ensures quality installations and stabilises rebate values over time. Climate Green will provide you with an exact, itemised quote showing the full system price and the VEU discount applied, so you know precisely what you will pay before proceeding.

Real Example A Melbourne family replacing their 15-year-old gas ducted heater with a new ducted reverse cycle system received a VEU discount of $4,800 applied upfront to their installation. Their total out-of-pocket cost was significantly lower than the retail price, and their annual energy bills dropped by over $900 in the first 12 months.

8. How to Claim Your VEU Air Conditioning Rebate with Climate Green

Claiming your VEU rebate through Climate Green is a straightforward, fully guided process. Our team manages every step so you do not need to deal with government portals, paperwork, or certificate lodgement.

1. Contact Climate Green — call 1300 001 690 or email info@climategreen.com.au to book your free consultation.
2. Free property assessment — our team reviews your existing heating/cooling system, your home layout, and confirms your VEU eligibility.
3. Receive your tailored quote — we provide a clear, itemised quote showing the full price and the VEU rebate deducted upfront.
4. Professional installation — our CEC-accredited technicians install your new reverse cycle system to the highest standard, including removal and decommissioning of your old system.
5. Certificates and compliance — Climate Green creates and lodges all VEECs on your behalf. You receive your compliance documentation and warranty paperwork.
6. Start saving immediately — your new energy-efficient system starts reducing your bills from day one.

9. Why Choose Climate Green for Your VEU Air Conditioning Upgrade?

Climate Green is a Victorian-based energy efficiency company committed to helping households reduce their energy costs and carbon footprint. We are an accredited VEU provider with a proven track record of installations across Melbourne and regional Victoria, including Geelong, Bendigo, Ballarat, and the surrounding areas.

What Sets Climate Green Apart

• VEU Accredited Provider: We are registered with the Essential Services Commission (ESC) as an Accredited Provider under the VEU program.
• CEC Approved Installer: Our technicians are Clean Energy Council accredited, ensuring every installation meets Australian standards.
• Full-service offering: We handle supply, installation, decommissioning of old systems, and all VEU paperwork in one seamless package.
• Split, multi-split, and ducted: We install the full range of eligible reverse cycle systems — no need to find multiple contractors.
• Gas heating removal included: Our team safely decommissions and removes your existing gas heating system as part of the ducted upgrade service.
• Transparent pricing: Your quote shows the exact VEU discount applied — no hidden fees, no surprise charges.
• Melbourne and regional Victoria: We serve greater Melbourne as well as Geelong, Bendigo, Ballarat, Shepparton, and surrounding areas.
• After-sales support: We provide ongoing support and service for all systems we install.

Get Your Free Quote Today Call Climate Green on 1300 001 690 or email info@climategreen.com.au. Our team will assess your eligibility, recommend the right system for your home, and provide a no-obligation quote with your VEU rebate clearly shown.

10. Frequently Asked Questions

Is the VEU program still available in 2026?

Yes. The Victorian Government has extended the VEU program through to 2045, ensuring long-term availability of rebates for Victorian households. The program remains fully funded and operational in 2026.

Do I need to apply for the rebate myself?

No. When you install your new system through an accredited provider like Climate Green, we handle the entire rebate process. The discount is applied to your invoice automatically — there is no government portal to navigate, no forms to fill in, and no waiting period.

Can I get a rebate for a new air conditioner if I do not have one currently?

Possibly. The highest rebates are available when replacing an existing inefficient system. If you are installing air conditioning in a space that previously had none, a reduced discount may still apply. Climate Green will confirm the exact rebate applicable to your situation during your free assessment.

Is ducted air conditioning eligible for the VEU rebate?

Yes. Ducted reverse cycle systems are fully eligible under the VEU program in 2026 and typically attract the highest rebates available — particularly when replacing gas ducted heaters. Climate Green installs ducted reverse cycle systems across Melbourne and Victoria.

Can I replace my gas heater with a reverse cycle system and get a rebate?

Yes, and this is one of the most valuable rebate opportunities available. Replacing a gas ducted heater with a ducted reverse cycle system generates a large number of VEECs, which translates to a significant upfront discount. Climate Green manages the full decommissioning of your gas system as part of this service.

Does the VEU program have an income test?

No. The VEU program has no income test and no asset threshold. Every Victorian household and business is eligible to access program discounts, provided they choose an eligible system and use an accredited provider.

Does Climate Green service regional Victoria?

Yes. Climate Green installs split systems, multi-split systems, and ducted reverse cycle air conditioning across Melbourne and regional Victoria, including Geelong, Bendigo, Ballarat, Shepparton, Latrobe Valley, and Wodonga.

How long does installation take?

Most split system and multi-split installations are completed within one day. Ducted reverse cycle installations, particularly those involving the removal of a gas ducted heating system, typically take one to three days depending on the size and complexity of the project.

Ready to Save with the VEU Program?

Climate Green makes it simple to access your VEU air conditioning rebate. Whether you are upgrading a single room with a split system, replacing a gas heater with a ducted reverse cycle system, or installing a multi-split solution across your whole home, our accredited team manages the process from quote to certificate — and you simply enjoy the savings.

Contact Climate Green Today Phone: 1300 001 690 Email: info@climategreen.com.au Free quotes. Upfront rebates. Full VEU compliance. Melbourne & Victoria.

Climate Green — Towards a Greener Generation | www.climategreen.com.au | 1300 001 690