If you’re thinking about upgrading your air conditioning, heating, or hot water system in Sunbury, Gisborne, Woodend, or anywhere in the Macedon Ranges, now is the perfect time!
Thanks to the Victorian Energy Efficiency Certificates (VEECs), homeowners can access rebates when installing energy-efficient reverse cycle air conditioning, heat pump hot water systems, and ducted heating upgrades.
But while these rebates are great, it’s important to choose the right system for your home—not just the one that gets the biggest discount. Here’s everything you need to know about VEEC rebates, how they apply to air conditioning and hot water, and how to avoid common rebate traps.
What Are VEECs?
VEECs are electronic certificates created under the Victorian Energy Upgrades (VEU) program. When you install an energy-efficient split system air conditioner, ducted reverse cycle system, or heat pump hot water system, VEECs are generated and sold to energy retailers.
This means you can receive a rebate on your upgrade—with bigger savings when replacing an inefficient system like gas ducted heating or an electric resistive hot water system.
However, VEEC rebates are based on specific activities and the exact model numbers of the systems being installed, making it tricky to calculate your rebate without a professional assessment.
Why Have VEECs Been Expanded to Include Air Conditioning?
For years, VEECs have supported upgrades to hot water systems and lighting, but they now include air conditioning and heating upgrades. The Victorian Government is encouraging homeowners to move away from gas heating and switch to efficient electric alternatives, like reverse-cycle air conditioners.
This means bigger rebates when replacing gas heating—and lower rebates if you’re just adding a new system without removing an inefficient one.
VEEC Rebates for Hot Water & Air Conditioning
Hot Water Rebates: 3 Rebates Available
If you’re upgrading your hot water system in Sunbury, Gisborne, Woodend, or the Macedon Ranges, you may qualify for three different rebates:
- VEECs (Victorian Energy Efficiency Certificates) – Available for installing a high-efficiency heat pump hot water system, but your property must be at least 2 years old to qualify. You’ll receive a higher rebate if you’re replacing an electric hot water system compared to gas. If you have a solar-boosted hot water system (gas or electric), it must be at least 5 years old and non-functioning to be eligible.
- STCs (Small-Scale Technology Certificates) – A federal rebate for heat pump and solar hot water systems.
- Solar Victoria Rebate – Additional support if you meet eligibility criteria. Your property must be at least 3 years old, and this rebate is means-tested, meaning eligibility depends on your household income.
By combining these rebates, you can significantly reduce the cost of upgrading to a heat pump hot water system.
Heating & Cooling Rebates: VEECs for Air Conditioning
VEEC rebates now apply to air conditioning upgrades, especially when replacing an old gas system.
Bigger rebates if you remove gas heating – Decommissioning a gas ducted heater or underfloor heating and replacing it with a reverse cycle system will earn you the most VEECs.
Minimal rebates for new installations without decommissioning – Installing a split system air conditioner without removing an old heater will qualify for a much smaller rebate.
Maximising VEEC Benefits: Focus on Decommissioning
The biggest VEEC rebates come from replacing old, inefficient heating systems. The most valuable upgrades include:
| Decommissioned System | Replaced With |
|---|---|
| Gas Ducted Heating | Reverse Cycle Ducted System |
| Underfloor Heating | Reverse Cycle Ducted or Split System |
| Gas Wall Furnace | High-Efficiency Split System |
Replacing an old gas heater with an energy-efficient reverse-cycle air conditioner lowers your power bills and increases your rebate amount.
How Are VEEC Rebates Calculated?
Unlike Solar Victoria rebates, which are means-tested, VEEC rebates are purely based on what system is being removed and what it’s being replaced with. The less efficient your old system is, the higher the rebate will be when you switch to a modern, energy-efficient alternative.
This means that every home qualifies for VEECs, regardless of income, as long as it meets the eligibility requirements.
Understanding VEEC Value Changes
VEEC rebates are not fixed and can change at any time. While Bluegum provides an upfront discount on your quote based on the current VEEC rate, the final rebate value is determined when the VEECs are submitted after installation.
If the rate changes before submission, the rebate amount may vary—so acting quickly can help you secure maximum savings on your air conditioning or hot water upgrade.
Beware the Rebate Trap: Don’t Let Short-Term Savings Cost You More
While we fully support rebates for energy-efficient heating, cooling, and hot water, not all installations are created equal. Unfortunately, some companies design systems purely to maximise rebates, rather than to suit the needs of the homeowner.
We’ve seen too many installations where:
- Oversized Air Conditioners in Small Rooms – An 8kW air conditioner in a bedroom that’s far too powerful, making the space uncomfortable and wasting energy.
- Cheap Multi-Head Systems with Too Many Connections – Installed just to qualify for a rebate, but with 10x the failure points and unreliable performance.
- Low-Quality Brands & Cheap Subcontractors – Systems chosen for the rebate value rather than long-term reliability, leading to breakdowns, no warranty support, and expensive repairs.
Yes, there’s a rebate. Yes, that’s great! But the most important thing is choosing the right system for your home’s long-term comfort and efficiency. A cheap bandaid fix that doesn’t last will cost you far more in the long run.
The poor man pays twice. Invest in a quality system that works for you, not just the one that looks cheapest today.
At Bluegum, we design tailored heating, cooling, and hot water solutions for homes in Sunbury, Gisborne, Woodend, and the Macedon Ranges—so you get the best of both worlds: a rebate AND a system that lasts.
Take Advantage of Rebates While They Last
If you’re in Sunbury, Gisborne, Woodend, or anywhere in the Macedon Ranges, contact Bluegum today for expert advice and a tailored quote. We’ll help you navigate the rebates and find the best long-term heating, cooling, and hot water solution for your home.