Upcoming VEECs Increase! What It Means for Your Business

The Victorian Energy Efficiency Certificate (VEEC) scheme is undergoing a significant update that will impact businesses investing in energy-efficient heating solutions.
Starting February 2025, the value of VEECs will increase by approximately 20%, creating a stronger financial incentive for businesses to transition to high-efficiency heat pump systems.
Revere Heat Pump package
What’s Changing?

From 1 February 2025, an updated electricity emissions factor (EEF) will come into effect to reflect a decline in emissions intensity due to increased renewable energy generation. This adjustment will affect the number of VEECs assigned to various energy-saving activities, leading to higher rebates for eligible projects.

For example, the Revere1CHP-80-1T1000-S-2C, which previously received 201 VEECs, will now receive 244 VEECs, a 20% increase*.

While the exact changes will vary between products, this shift means greater financial returns for businesses upgrading their heating systems.

* The number of VEECs awarded also varies based on the system being replaced.

Updated Electricity Emissions Factor from 1 February 2025

From 1 February 2025, changes to the EEF will come into effect to reflect a decline in the emissions intensity of electricity due to increased renewable energy generation.

The change reduces the EEF to 0.393 (t CO2-e/MWh). Deemed VEU activities may see a change in incentive depending on:

  1. the fuel source used in the baseline and upgrade activity, for example, electric to electric, electric to gas
  2. technical assumptions which underpin the activity
  3. the rounding of Victorian Energy Efficiency Certificates (VEECs).

For more details, visit the Victorian Energy Upgrades (VEU) program website: Victorian Energy Upgrades Latest News.

How Can Your Business Benefit?

Three key programs provide financial incentives for upgrading heating and hot water systems:

Through these initiatives and by choosing one of our approved heat pump packages, businesses can receive rebates to:

  • Replace electric resistance water heaters
  • Replace gas boilers
  • New heat pump installations
Automatic Heating is the only approved supplier offering a commercial heat pump of this size eligible for rebates in Victoria and New South Wales.
Understanding Heat Pump Approved Packages
It’s important to note that rebates apply to specific heat pump approved packages, not just any standalone heat pump. These packages include pre-approved configurations that meet government rebate requirements, ensuring compliance and maximum financial benefit.
Why Consider Heat Pump Technology?

Switching to a high-efficiency CO₂ heat pump system offers key advantages like:

  • Higher Efficiency – A CO₂ heat pump produces an average of 3.9kW of heating energy per 1kW of electricity, making it nearly four times more efficient than traditional systems.
  • Lower Carbon Emissions – The technology leverages natural CO₂ refrigerant and an advanced heat extraction process to minimise emissions.
  • Enhanced Safety – Unlike gas boilers, CO₂ heat pumps eliminate on-site combustion, reducing fire risks and improving workplace safety.
How to Calculate Your Rebate

Want to see how much your business can save? We’ve developed a list of resources including links to easy-to-use calculators for both Victorian Energy Upgrades (VEU) and NSW Energy Security Safeguard programs.

Explore Rebate Calculators & Resources

These tools allow businesses to estimate rebate values and determine potential cost savings when upgrading to energy-efficient systems.

Leading the Way in Sustainable Heating

At Automatic Heating, we are committed to providing businesses with high-performance, sustainable heating solutions that align with government energy efficiency programs. With nearly 100 years of industry leadership, we specialise in system design, engineering, and tailored solutions that maximise rebates and long-term savings.

Reach out to our team of experts to learn more about how these updates impact your business and explore the best heating solutions for your needs.

Join us in making the shift toward a more efficient, cost-effective, and sustainable future.

GET TAILORED ADVICE ON ELIGIBLE HEAT PUMP PACKAGES

VEECs FAQ

What does VEEC stand for?

VEEC stands for Victorian Energy Efficiency Certificate. Each certificate represents one tonne of greenhouse gas emissions reduced through approved energy-saving activities under the Victorian Energy Upgrades (VEU) program.

What is the difference between VEECs and STCs?

Both VEECs and STCs (Small-scale Technology Certificates) are incentives promoting energy efficiency, but they differ in scope and application:

  • VEECs: Issued under the Victorian Energy Upgrades program, VEECs are awarded for activities that reduce greenhouse gas emissions in Victoria, such as upgrading to energy-efficient heating systems.
  • STCs: Part of the federal Renewable Energy Target, STCs are granted for the installation of eligible renewable energy systems across Australia, including solar panels and solar water heaters.
What is the Victorian Energy Upgrades program for businesses?

The Victorian Energy Upgrades (VEU) program is a state government initiative that helps businesses reduce energy costs by providing discounts on energy-efficient products and services. By partnering with accredited providers, businesses can access incentives for upgrades like efficient lighting, heating, and hot water systems.

How can businesses create VEECs?

To create VEECs, businesses should:

  • Engage an Accredited Provider: Work with a provider accredited under the VEU program to identify eligible energy-saving activities.
  • Implement Approved Upgrades: Install energy-efficient products or undertake activities that qualify under the program.
  • Certificate Creation: The accredited provider will calculate the emissions savings from the upgrade and create the corresponding VEECs, which can then be sold to generate financial returns.
How does the updated Electricity Emissions Factor (EEF) affect VEECs?

Effective from 1 February 2025, the EEF will be reduced to 0.393 t CO₂-e/MWh to reflect the decline in emissions intensity due to increased renewable energy generation. This change may lead to adjustments in the number of VEECs awarded for certain activities, depending on factors like the fuel source used in the baseline and upgrade activity.

What types of heating systems are eligible for VEECs?

Eligible heating systems under the VEU program include high-efficiency heat pumps and other energy-efficient technologies that replace less efficient electric or gas systems. Automatic Heating offers approved heat pump packages that qualify for VEECs, providing businesses with significant rebates.

How can businesses maximize their rebates under the VEU program?

To maximize rebates:
Stay Informed: Keep up-to-date with program changes, such as updates to the EEF, which can affect rebate values.
Plan Upgrades Strategically: Timing installations to align with program updates can enhance financial returns.
Consult Accredited Providers: Work closely with accredited providers to select the most beneficial upgrades and ensure compliance with program requirements.