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Your local energy efficiency experts      

Building Services

Subsidised energy efficiency products and services

                                                    1300 781 614

   VEU upgrades & rebates

   House Energy As​sessments


VEU activity 6 - proposed replacement for heating and cooling activities 

This article is about proposed changes to claims for installing space heating and cooling appliances (RCAC - reverse cycle air conditioners. 

Highly efficient RCACs offer the greatest emissions reduction potential when replacing any other space heating appliances, including gas appliances. These products become even more effective over time as the efficiency of air conditioning equipment improves. 

Consumers will also benefit through energy bill savings from installing a RCAC to service both their heating and cooling needs rather than upgrading to gas appliances. Approximately 74 per cent of residential gas use is for space heating, so upgrading gas heating appliances to efficient RCACs can be an effective way of reducing both emissions and gas demand. The cost-effectiveness of electrification activities can also be increased where households have rooftop solar photovoltaic (PV) panels installed.

In line with the above VEU scheme will support electrification by removing incentives to upgrade to gas appliances. Some other activities like evaporative coolers will also be removed and rebates for new activities will be revised to better reflect the abatement. The changes are expected to be implemented on April 30, 2023  

How much rebate will be available?

The table below shows rebates for existing and new activities

New decommissioning scenarios for installing sample 6.0kW split system 

Current rebate

New rebate after 30/4/2023

Hardwired electric resistance heater



RCAC (split system or window style)



Plug-in electric resistance heater



Hard wired electric resistance heater and cooling only AC



Plug-in electric resistance heater and cooling only AC



Gas room heater and cooling only AC



Gas room heater

N/A *


Ducted gas heater

N/A *


Hard wired resistance ducted



Slab heater

$3150 *


Ducted RCAC (reverse cycle)

$150 *


New system (not a replacement)

$50 *


* currently can be upgraded in a different scenario (not to RCAC heat pump)

The rebates quoted in this table are estimated only and calculated on current certificate price which may change in the future. Also the rebates vary by location (climate). After the new activities are implemented we will be able to issue exact quotes for your specific claim. 

What should I do

Please review the information in the above table and see if your preferred upgrade is currently eligible for rebate and if it will continue to be offered after 30 April, 2023. If it will no longer be valid, you need to upgrade before it is removed. If it will continue, compare the estimated rebates and decide if you want to wait or upgrade now. Remember, by upgrading now you start saving immediately, so any rebate increase in the future will be offset by the expense of running old appliances until the upgrade.

To process the rebate using upgrade options currently available register on our Contact Us page. We will send you approved product list, the claim form and a step-by-step checklist to complete the activity and collect the required evidence.