Victorian air conditioning rebate 2026 (VEU)

How much is the Victorian air conditioning rebate in 2026?

The discount depends on two things: what you are pulling out and what you are putting in. Taking out gas earns the most, because that is where the emissions saving is. Replacing an old reverse cycle with a new one earns the least. These are the household figures the Victorian Government published for heating and cooling, current at 28 September 2026.

Read the table twice if you are replacing gas ducted with splits. One split on its own does not earn the ducted gas rate. The four-split package or a multi-split does. A plug-in fan heater does not count as a hard-wired electric heater either.

The only way to turn an indicative figure into a real one is an accredited installer's quote. Get up to three local quotes with the VEU discount shown as its own line.

Who is eligible for Victorian Energy Upgrades?

The short answer is every household in Victoria. There is no income test, no postcode test and no pensioner-only version. The rules sit on the product and the paperwork.

• The new system must be an approved high-efficiency reverse cycle air conditioner that heats and cools.
• For a home, it must come with at least a five-year warranty.
• If you are replacing a heater or air conditioner, the old one must be more than two years old.
• The discount can only be applied by an accredited provider. Your own installer can do the work if they partner with one before the job starts.
• Renters can get the discount, but heating and cooling upgrades need the landlord's approval.
• There is no minimum system size.

You can check whether a model is approved on the Essential Services Commission's VEU product register. Ask for the exact model number on the quote so you can look it up.

How does the VEU rebate work?

When an accredited provider installs an approved upgrade, it creates Victorian Energy Efficiency Certificates. Each one stands for a tonne of greenhouse gas avoided. The provider sells those certificates to energy retailers, who need them to meet a state target. That sale is what funds your discount.

It means the discount is a market price, not a fixed grant. Two accredited providers can quote different discounts on the same job, and the same provider can quote a different number next month. That is why the government calls its figures indicative.

In practice the provider confirms the model is eligible, puts the discount on the quote, installs the system and handles the paperwork, including any electrical or plumbing certificates. Expect geo-tagged photos of the old heater, the install site and the finished job. If a gas heater comes out, there has to be evidence it was decommissioned.

Replacing gas ducted heating with reverse cycle in Victoria

This is the job the scheme was built for. A typical ducted reverse cycle system for a suburban house is estimated at $8,000 to $15,000 installed for three bedrooms, and $10,000 to $20,000 for a larger or two storey home. Against that, the ducted gas replacement discount is up to $2,520 for a 10 kW system, up to $4,200 for 16 kW and up to $5,530 for 22.4 kW.

The Victorian Government puts the bill saving at up to $1,140 a year when a ducted gas heater is replaced with efficient reverse cycle. If heating was your last gas appliance, you can also drop the gas supply charge, which the government estimates at around $350 to $400 a year.

Plan on new ductwork. The ACT Government's buyer guide says old gas ducts are too narrow for reverse cycle and may have age problems, and the same physics applies in Melbourne. Ask for R1.5 insulated duct at minimum.

Our reverse cycle vs gas heating guide covers running costs and the Brivis-in-the-roof question in detail, and the ducted cost guide breaks the install price down by house size. When you want the real number for your roof, get a quote with the gas removal and the discount both itemised.

Is there a Victorian government split system rebate?

Yes, through the same VEU program, and it is smaller than the ads suggest. A split that replaces a gas room heater gets $630 to $1,610, the high end for larger units. A split that replaces a hard-wired electric heater gets up to $840. A split that replaces an old reverse cycle gets $210. A split in a room with nothing to remove gets $70 to $140.

Against a split system at $1,800 to $4,800 installed, the gas room heater swap is a real saving. The first-time install discount is pocket money. Buy the split because you need it, and treat the discount as a bonus. A local quote will tell you which line of the table your room falls under.

"Free air conditioner" offers usually lean on the biggest line in the table and a very basic unit. Ask what is being decommissioned, which model is going in, and what the invoice says before the discount.

Can I claim the VEU discount after the air conditioner is installed?

Sometimes, and it is harder than doing it upfront. A retrospective rebate has to be submitted by an accredited provider within six months after the end of the calendar year the upgrade happened. An upgrade done in 2025 had to be lodged by 30 June 2026.

You will need the invoice with brand and model, compliance certificates, decommissioning evidence if something was removed, and geo-tagged photos before and after. Most people do not have those photos, which is why the government tells you to engage the provider before the work starts.

Telemarketing, door knocking and your rights under VEU

Cold calling and door knocking to sell VEU upgrades are banned. Telemarketing stopped from 1 May 2024 and door knocking from 1 August 2024, unless you asked to be contacted. If someone rings out of the blue offering a free heat pump or air conditioner, that call breaks the rules.

Complaints go to the Essential Services Commission on (03) 9032 1310, or Consumer Affairs Victoria on 131 450.

Other Victorian energy help for pensioners and renters

VEU is the only Victorian program that discounts the air conditioner itself. The rest of the help sits on the bill.

• Annual Electricity Concession: 17.5% off electricity usage and service costs for Pensioner Concession Card, Health Care Card and DVA Gold Card holders. It does not apply to the first $171.60 of the annual bill. Your retailer applies it.
• Medical Cooling Concession: a further 17.5% between 1 November and 30 April for card holders with a doctor-confirmed condition that affects temperature regulation.
• Power Saving Bonus: the $100 round for concession households closed to new applications on 31 March 2026.
• Renters: from 1 March 2027, when a rental's heater breaks and cannot be repaired, the landlord must replace it with an efficient reverse cycle in the main living area. By 1 July 2030 every rental needs efficient cooling in the living area.

Owner-occupiers are not being forced off gas heating. From 1 March 2027 a broken gas hot water unit must be replaced with electric, but gas space heating has no such rule. When you are ready, get a quote with the VEU discount shown as its own line.