Heating and Cooling Discounts

You can reduce costs by replacing old heating and cooling systems with more energy-efficient systems.

The cost of heating and cooling your home or business can be a significant part of your energy bills.

On average, households can spend up to $800 a year, or a third of their energy bill, on heating. This can be significantly more for businesses.

By replacing old heating and cooling systems with more energy-efficient ones or simply purchasing new energy-efficient ones, you can reduce your costs and energy use.

We recommend reviewing our guidance to help you choose the right reverse cycle air conditioner for your home.

Space heating and cooling factsheet

We have created a handy factsheet to assist you in selecting the right size reverse cycle air conditioner to heat and cool your home. This factsheet will also be provided to you if you undertake a heating and cooling upgrade under the VEU program.

• VEU space heating and cooling consumer factsheet
• VEU space heating and cooling consumer factsheet - accessible version

Eligibility

All Victorian households and businesses are eligible to apply for discounts.

With this activity you can only install a:

• VEU approved product with a minimum 5-year warranty
• range of ducted and non-ducted RCACs
• high-efficiency RCACs capable of both heating and cooling.

To find an approved product visit the product register, select ‘6(23) - Space heater and cooler - High efficiency air conditioner’ from the drop down menu and click 'Search'.

If you are replacing an existing heating or cooling system, the property must be more than 2 years old.

Living in a rental property?

Private rental properties are eligible to receive a discount on a heating and cooling system. We recommend that landlords and tenants work together when doing any upgrades to a rental property.

For more information, visit renters, landlords and body corporate.

It is important to consider warranty when installing a new space heating and cooling system. Under VEU, space heating and cooling systems must be covered by a minimum 5-year warranty. A warranty is only as good as the company that provides it, so remember to read the warranty conditions look for a company with experience in manufacturing energy efficient space heating and cooling systems.

Under the VEU, space heating and cooling systems have a minimum customer contribution that must be met by all households and businesses. Products cannot be free of charge and customers must contribute at least the following to the cost of the product:

• $200 (inc. GST) per product for all non-ducted RCACs under 10 kW
• $1,000 (inc. GST) per product for all non-ducted RCACs over 10 kW
• $1,000 (inc. GST) per product for all multi-split and ducted RCACs.

The final installed price of the appliance, which includes the discount, is up to the accredited provider and will depend on several factors, including:

• certificate price (which can fluctuate)
• location
• installation costs
• the accredited provider’s administrative costs.

For more information on the certificate price under the VEU program, visit Victorian Energy Efficiency Certificates (VEECs).

If you have purchased an eligible product after 31 May 2023, and would like to organise a retrospective rebate, an accredited provider may be able to guide you through the process.

(source: Victoria State Government, Heating and Cooling Discounts, 10 April 2025)