VEU needs urgent tweaks for deliver Vic gas substitution sooner, 14 Dec 2023

Urgent tweaks to the flagship Victorian Energy Upgrades (VEU) program are needed to deliver Victoria’s gas substitution roadmap updated today.

“We commend the Victorian government on its gas substitution leadership with the devil in some details to unlock the energy efficient appliance upgrade transformation needed over the next few years to drive down energy bills, electricity peak demand and greenhouse gas emissions,” said Energy Savings Industry Association President Mr Rod Woolley.

The ESIA is advocating urgent tweaks to focus support for essential service appliance upgrades including hot water and air conditioning.

For example:

  • Emissions factors need to be updated to reflect the government’s policy position of 95% renewables by 2035.
  • Upgrade incentives need to value a longer lifetime of energy savings for replacing gas appliances to value the avoidance of getting another gas appliance. This is reasonable until there is a ban on new gas appliances.
  • Households which have higher demand for hot water need to be fairly supported with incentives for getting the most efficient replacement unit. Currently, the VEU provides less support for customers that need a large load system.
  • Upgrades that are incentivised under the VEU need to include the most common and flexible upgrade types so installers can choose the best solution for the home. For example, a home replacing a gas ducted heating system should be fairly supported with incentives whether they choose a unit with several ‘heads’ for different rooms from the one main condenser unit versus a single unit per room that has an internal head and external condenser unit.

“We welcome continued engagement with the Victorian government and VEU team to deliver the Energy Minister’s commitment to deliver the gas substitution roadmap,” said Mr Woolley.

… Ends

Media contact:

Jessica Lynch, M 0417 539 377,





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