In Victoria there is an attractive rebate scheme run by Victorian Energy Upgrades (VEU) which provides an upfront discount on energy efficient products like reverse cycle air conditioners.
This easy to digest guide will help you understand if you’re eligible, how much you’ll receive and how to get started.
What is the Victoria Air Conditioner Rebate?
The air conditioner rebate in Victoria is offered by the VEU and provides a discount for reverse cycle air conditioners which are widely considered to be the most efficient option for Victorian households.
Eligible products will generate Victorian Energy Efficiency Certificates (VEECs) upon installation which can then be sold. The certificates are generated and sold by the installation company and they pass on an up-front discount to the consumer.
The value of the rebate you will receive will depend on your existing heating/cooling system, the capacity of the air conditioner you are installing and the current VEEC price. See the below table for a guide of common scenarios
Table: Common Scenarios and Expected Victoria Air Conditioner Rebate Value
Scenario | System size | Typical VEECs created | Approx. rebate ($78/VEEC) |
New install (no prior AC/heater) | 2.5 kW split | 15–20 | $1,170 – $1,560 |
7 kW split | 30–40 | $2,340 – $3,120 | |
12 kW ducted | 60–80 | $4,680 – $6,240 | |
Replacement of old gas heater | 2.5 kW split | 8–12 | $624 – $936 |
7 kW split | 20–25 | $1,560 – $1,950 | |
12 kW ducted | 40–55 | $3,120 – $4,290 | |
Replacement of old inefficient RCAC | 2.5 kW split | 5–8 | $390 – $624 |
7 kW split | 12–18 | $936 – $1,404 | |
12 kW ducted | 25–35 | $1,950 – $2,730 |
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Key Factors That Will Affect The Size of The Rebate
Here are the top 5 factors that affect how many VEECs (Victorian Energy Efficiency Certificates) are created when you install or upgrade an air conditioner under the VEU program:

Eligibility Criteria
The eligibility criteria is very broad and only requires that you install an eligible product on the VEU product register. If you are replacing an existing heating or cooling system then your property must be at least 2 years old.
This means any household or business can apply and there is no means testing.
Eligible Products for The Air Conditioner Rebate Victoria
The main conditions the VEU check to add products to their register are:
- Minimum 5-year warranty
- Reverse cycle air conditioner (capable of heating and cooling)
- The product is high-efficiency
We recommend you do your research on brands and models on any air conditioners you are quoted and check the VEU register to confirm they are eligible for the rebate.
How To Claim The Victoria Air Conditioner Rebate
The VEECs will be created and sold by your installation company, which means they will claim the rebate on your behalf. On you quote for installation, you will see an upfront discount which matches the expected VEEC rebate they expect to receive.
So in order to claim the rebate, you need to organise a quote from a installation company that is registered with the VEU. We recommend getting 3 quotes from local and reputable installers. You can use Solar Choice’s Quote Comparison Tool to immediately browse through quotes from local installers that we have pre-vetted – click the link below to get started.
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