Victorian Energy Upgrades: AC Discounts in Melbourne's South East
VEU Accredited Provider A003039
The Victorian Energy Upgrades (VEU) program takes money off the price of an efficient reverse cycle air conditioner. Helcro Electrical is a VEU Accredited Provider (A003039), and we are listed among the accredited providers on the Victorian Government’s heating and cooling discounts page. We work out your discount, show it on your quote and take it off your invoice. You pay the rest; we do the paperwork.
Replacing a gas room heater can be worth up to $1,610 off, and replacing ducted gas heating up to $5,530 (indicative figures, Victorian Government, October 2026). The one rule that catches people out: the discount has to be arranged before the work starts.
Get a Quote → or call 1300 201 358. We will call you back within 2 business hours.
In business since 2006 · Registered Electrical Contractor REC 35448, registered with Energy Safe Victoria · ARC Refrigerant Trading Authorisation AU50700
How much is the VEU discount for air conditioning?
The discount depends on two things: what you take out, and what you put in. Replacing gas heating earns the most, because that is where the program counts the biggest emissions saving. Adding a system without removing anything earns the least.
Room (non-ducted) reverse cycle systems, homes
| What you are replacing | New system | Indicative discount |
|---|---|---|
| Gas room heater (non-ducted) | 3 kW to 9 kW | $630 to $1,610 |
| Hard-wired electric room heater | 3 kW to 9 kW | up to $840 |
| Ducted gas heating | multi-split, one 10 kW outdoor unit | up to $2,940 |
| Ducted gas heating | four split systems (1 × 8 kW + 3 × 3 kW) | up to $2,520 |
| An existing reverse cycle air conditioner | 3 kW to 9 kW | $210 |
| Nothing removed | 3 kW to 9 kW | $70 to $140 |
Ducted reverse cycle systems, homes
| What you are replacing | New system | Indicative discount |
|---|---|---|
| Ducted gas heating | 10 kW / 16 kW / 22.4 kW | up to $2,520 / $4,200 / $5,530 |
| Central electric ducted heating | 10 kW to 22.4 kW | up to $5,460 |
| Ducted reverse cycle | 10 kW / 16 kW / 22.4 kW | up to $490 / $770 / $910 |
| Nothing removed | 10 kW to 22.4 kW | up to $410 |
Source: Victorian Government (DEECA), heating and cooling discounts, page updated 29 October 2026. The government labels these figures indicative, so we confirm your exact discount in writing on the quote.
On bills, the same page estimates savings of up to $460 a year when a gas room heater is replaced, and up to $1,140 a year when ducted gas heating is replaced.
Not sure which row fits your home? Get a Quote → and we will work it out with you.
For our straight installation prices by brand and size (no rebate involved), see split system installation.
The VEU co-payment: what you still pay
Every VEU air conditioning job has a minimum amount the customer must pay, called the co-payment. It applies to each product installed, and it sets a floor: the discount can never take your price below it. Two of these amounts changed on 30 September 2026:
- Single-split, non-ducted, under 10 kW: $200 (unchanged)
- Single-split, non-ducted, 10 kW or more: $1,000 (unchanged)
- Multi-split under 10 kW total rated cooling capacity: $1,000 (unchanged)
- Multi-split 10 kW or more total rated cooling capacity: $3,000 (was $1,000)
- Ducted, any capacity: $3,000 (was $1,000)
All amounts include GST. Sources: Essential Services Commission update of 30 September 2026 and DEECA's VEU Specifications, version 25.0.
Also from 30 September 2026, the discount on a home multi-split is calculated on no more than 20 kW of capacity. A larger multi-split (up to 39 kW) can still be installed under the program; the discount simply stops growing past 20 kW.
Who qualifies for Victorian Energy Upgrades
Every Victorian household and business can take part. There is no income test. For air conditioning, the conditions are:
- The product: an approved high-efficiency reverse cycle system that both heats and cools, with at least a 5-year product warranty for a home.
- The home: if you are replacing an existing system, the property must be more than 2 years old.
- Size: there is no minimum system size.
- Rentals: private rentals are eligible, but heating and cooling upgrades need the landlord's approval.
- The heater you replace: a gas room heater can be replaced wherever it is in the home. A hard-wired electric heater, ducted gas heating or an existing ducted reverse cycle system only counts if it is the home's main form of heating, and only one hard-wired electric room heater per home counts; extra ones attract the lower "nothing removed" rate.
- Ducted systems: a home can get the discount on one ducted system. If a larger home has more than one ducted gas heater, ask us how the others can be replaced under the program.
Businesses have their own discount tables. If you run a shop, office or warehouse, see our commercial electrical work and ask for a quote.
Talk to us before you buy or install anything: Get a Quote or call 1300 201 358. A discount claimed after the job is not guaranteed, it is hard to prove once an old heater is gone, and it must be processed within 6 months of the end of the calendar year of the work (Victorian Government, retrospective discounts page, October 2026).
How a VEU job works with Helcro Electrical
- You call 1300 201 358 or send the quote form. We will call you back within 2 business hours to talk through the rooms, the heating you have now and what you want.
- Site assessment. A $50 site assessment applies to every job. We look at the rooms, the existing heater, the switchboard and where the outdoor unit can go, and we photograph the old heater, because the program can ask for dated photo evidence of it.
- Before you agree to anything. We give you the government's VEU heating and cooling fact sheet, tell you whether the system we propose matches its sizing guide, and give you a Statement of Rights. The program requires all three; we think they make for a better decision anyway.
- Your written quote. It shows the system price, the VEU discount and what you pay, which is never less than the co-payment.
- Installation. Our own licensed electricians and refrigeration technicians do the work. The old heater is decommissioned so it cannot be used again, any refrigerant is recovered by our licensed refrigeration technicians (the business holds ARC Refrigerant Trading Authorisation AU50700), and the old unit is taken away where that is practical and safe.
- Certificates and paperwork. You receive a Certificate of Electrical Safety from Registered Electrical Contractor REC 35448. You sign the VEEC assignment form and we create the Victorian Energy Efficiency Certificates (VEECs) that fund your discount. Each certificate stands for one tonne of greenhouse gas kept out of the atmosphere, and accredited providers sell them to energy retailers: large retailers must surrender a set number each year to meet a target in Victorian law. The discount has already come off your invoice, so there is nothing for you to claim.
After the install, the product carries the manufacturer's warranty, which varies by brand (at least 5 years for a home under VEU rules), and our own 5-year workmanship warranty on air conditioning work.
Choosing the right size
The Victorian Government recommends that installers visit your home to check what size is right. Our air conditioner size calculator has the Victorian Government's room-size guide and gives a first estimate.
Single-split, multi-split or ducted
- Single-split: one indoor unit and one outdoor unit. Suits one room or an open-plan living area, and carries the lowest co-payment ($200 under 10 kW).
- Multi-split: one outdoor unit running several indoor units, each with its own controls. It is our most common VEU job, often replacing ducted gas heating room by room. The program requires every indoor unit to be the same make as the outdoor unit.
- Ducted: one central system feeding vents through the house. The highest discounts sit here, and so does the $3,000 co-payment. Estimate the system price first with our ducted air conditioning cost calculator.
The brands we install most under VEU are Rinnai and Carrier for multi-splits, and Mitsubishi Electric, Mitsubishi Heavy Industries, Rinnai, Haier and Carrier for single splits. More on each system type: air conditioning installation.
Get a Quote → or call 1300 201 358. Tell us what heating you have now and we will work out your discount.
Hot water and other VEU upgrades
The program covers more than air conditioning. A heat pump hot water system has its own discount: up to $560 when it replaces a gas hot water system, up to $630 when it replaces an inefficient electric system, and up to $1,560 when the gas discount is combined with a Solar Homes hot water rebate (Victorian Government, October 2026). That rebate is Solar Victoria's, for eligible owner-occupiers: 50% of the price left after the VEU discount and STCs, capped at $1,000, or $1,400 where the model is on Solar Victoria's locally made list, which takes the combined figure coming off gas to up to $1,960. The house must be at least 2 years old. We apply the VEU discount on our heat pump hot water installations too, and it comes off your invoice in the same way.
From 1 March 2027, a mains gas water heater in an existing Victorian home that needs replacing must be replaced with an electric system, with some exemptions. Read more on our heat pump hot water page and in what Victoria's gas rules mean for you.
Your rights under the VEU program
Every accredited provider must follow the program's Code of Conduct. In plain terms:
- No cold calls, no door-knocking. VEU businesses have been banned from cold-calling since 1 May 2024 and from door-knocking since 1 August 2024. If you asked us to call, that is not a cold call.
- Before a contract, you receive a Statement of Rights, and the contract sets out the product, the price and any extra fees, how the old system will be decommissioned, and your cooling-off period.
- Before work starts, the provider must explain the planned work so you understand it, and anyone working for them must wear a photo ID card.
- Complaints must be acknowledged within 5 business days, with reasonable steps taken to resolve them within 20 business days. Ours go through our complaints handling procedure. If you are not satisfied, contact the Essential Services Commission on (03) 9032 1310 or veu@esc.vic.gov.au, or Consumer Affairs Victoria on 1300 55 81 81.
You can check that a provider is accredited on the government's provider list. It is worth doing: in March 2026 the Essential Services Commission reported that businesses had forfeited $4.2 million in certificates, and one was banned for false claims.
What is changing in Victorian Energy Upgrades (2026 to 2027)
- 30 September 2026: the co-payment for ducted systems and for multi-splits of 10 kW or more rose to $3,000, and home multi-split discounts are now calculated on at most 20 kW.
- 8 September 2026: the law that reforms the program (Act No. 37/2026) received Royal Assent. The government says it will rename the program's Act and make discounts more transparent, with independent dispute resolution. The detailed regulations are still to come.
- The 2026 review: the government reviewed the heating and cooling part of the program in 2026 after finding that multi-split systems were being oversized to get bigger discounts. The 30 September changes came out of that review, and the government says it will keep closely monitoring heating and cooling installations. Discount amounts can change again; we quote the figure that applies on the day.
- 1 January 2027: new homes and most new commercial buildings must be all-electric.
- 1 March 2027: gas water heaters in existing homes are replaced with electric systems at end of life (with exemptions). In rental homes, a fixed heater that fails and cannot be repaired must be replaced with energy-efficient fixed electric heating, such as a reverse cycle system, with an outlet in the main living area, unless an exemption applies. Rentals must also have energy-efficient fixed cooling with an outlet in the main living area at the start of a new agreement or on conversion to month-to-month.
The program has run since 1 January 2009, and the Victorian Government says 2.4 million households have upgraded through it. Since it went all-electric for households in 2023, it has delivered discounts on 19,000 reverse cycle air conditioners and 39,000 hot water systems (Victorian Government, November 2024). A 2025 change to the law (Act No. 15/2025) provides for program targets until the end of 2045, so the program is set to continue, though discount amounts can change. Solar Victoria's separate heating and cooling program closed in December 2022, so for air conditioning the VEU discount is the Victorian Government incentive we apply. If you are planning a bigger change, start with our home electrification guide.
WHAT OUR CUSTOMERS SAY
Tanya Oakley, Google review
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VEU air conditioner rebate: common questions
Is the VEU discount means-tested?
No. All Victorian households and businesses are eligible, and the government’s eligibility rules contain no income condition.
What will I actually pay?
The system price minus the VEU discount, and never less than the co-payment: $200 for a single-split under 10 kW; $1,000 for a single-split of 10 kW or more, or a multi-split under 10 kW; and $3,000 for a multi-split of 10 kW or more, or a ducted system of any capacity. A $50 site assessment comes before the written quote, and the quote shows all three figures.
Can I get the discount after the system is installed?
Sometimes, but it is not guaranteed. A retrospective claim must be processed within 6 months of the end of the calendar year of the install, and it is often impossible once the old heater has been removed. Talk to us first.
Do I have to remove my gas heater?
Not to take part, but the large discounts are for replacing gas heating. With nothing removed, a room system earns $70 to $140 and a ducted system up to $410.
Does a bigger multi-split get a bigger discount?
Only up to a point. Since 30 September 2026 the discount on a home multi-split is calculated on at most 20 kW, and multi-splits of 10 kW or more carry a $3,000 co-payment.
I rent. Can I use the VEU program?
Yes, private rentals are eligible, but heating and cooling upgrades need your landlord’s approval. Landlords can arrange the upgrade themselves.
How do I know Helcro Electrical is accredited?
Our VEU Accredited Provider number is A003039, and our name is on the government’s heating and cooling provider list for Greater Melbourne. Our electrical registration (REC 35448) is on the Energy Safe Victoria public register.
Book your VEU air conditioning quote
We have been in business since 2006 and work across Melbourne South East, including Cheltenham, Moorabbin, Highett, Parkdale, Bentleigh and Bentleigh East (all areas). Tell us which rooms you want heated and cooled and what heating you have now.
Get a Quote → or call 1300 201 358. We will call you back within 2 business hours. A $50 site assessment comes first: we check the rooms, the existing heater, the switchboard and where the outdoor unit can go. Your written quote then shows the system price, the VEU discount and what you pay. Air conditioning work carries our 5-year workmanship warranty.
Figures checked 5 November 2026 against the Victorian Government (DEECA) and Essential Services Commission sources named above. Team members are registered with the Building and Plumbing Commission (formerly the VBA) for air conditioning work.