VEU to be extended to 2045 with interim 2026-27 targets, 9 Oct 2024
The ESIA today welcomed the news that Victoria’s Energy Upgrades (VEU) program will be extended to 2045, with legislation due to be passed in 2025. Interim VEU targets for 2026-27 will be set following consultation due process commencing before 2024-year end. All while the broader VEU strategy review is under way to modernise the program, as confirmed today by Lily D’Ambrosio MP, Minister for Energy and Resources, Climate Action and the State Electricity Commission.
“This announcement provides certainty for industry to continue to invest in transformative technology innovation and business models to deliver more energy efficient quality appliances to households and businesses across Victoria at scale,” said ESIA President Rod Woolley.
Upgrade decisions can be complex with ongoing barriers including upfront costs. There is no easy solution, which is why market-based mechanisms like the VEU work and require long-term commitment and targets. Delivering lowest cost abatement with suitable quality solutions so Victorians get bang for their buck remains the paramount objective of the program.
“As the impacts of climate change escalate, we need bi-partisan support to strengthen the VEU to 2045. The VEU is a key lever that empowers households and small businesses to take action now in their homes and workplaces to lower their energy bills and improve the efficiency of their appliances. This action delivers emissions reductions, better comfort and health and immediate cost-of-living relief,” said Mr Woolley.
ESIA members including certificate creators (Accredited Persons), equipment suppliers and licensed installer networks help energy customers to navigate VEU incentives and stackable rebates to maximise upfront discounts so energy consumers can electrify sooner. The ESIA is part of a consultative committee contributing to the VEU strategy review which commenced recently and will take two years to consider, consult and deliver on legislative and regulatory changes required. This includes to better support Victoria’s gas substitution roadmap, focussed on supporting millions of Victorian households and businesses to get off gas. Pivotal upgrades needed include electrified heating and cooling, hot water and commercial process improvements. The VEU is a catalyst for 21st century jobs and skills.
“Current high Victorian Energy Efficiency Certificate (VEEC) prices are indicative of program impediments that the ESIA believes can be largely rectified with short-term adjustments. This includes better rewarding switching from gas to electric appliances. Also, adding more types of eligible upgrades, more responsive product approval times by the Essential Services Commission VEU administrator and more targeted, timely, transparent and better resourced audit, compliance and penalties,” said Mr Woolley.
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Media contact: Jessica Lynch, M 0417 539 377, comns@esia.asn.au
(PDF - ESIA Media Release)
(Victorian Government Media Release Moving To Extend Victorian Bill Saving Upgrades To 2045 | Premier)
