Free tool for Victorian homes
VEU Calculator: How Much Could You Save?
Work out your air conditioner or heat pump rebate in Victoria. Tell us what you are replacing and what you want to install, and get an indicative Victorian Energy Upgrades (VEU) discount for a reverse cycle split, multi head or ducted system, plus an honest read on your eligibility. Takes about 20 seconds.
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How the estimate works
This VEU calculator estimates your rebate the way the program actually works: Victorian Energy Upgrades discounts are not a flat rebate. The amount depends on four things, and the calculator weighs the same four:
The activity
Replacing gas ducted heating or old electric heaters with efficient reverse cycle is the core supported upgrade.
System size
Bigger systems save more energy, so they attract more certificates and a larger discount.
Certificate prices
Discounts are funded by tradeable certificates, so the dollar figure moves with the market over time.
Decommissioning
The old system must be properly removed and decommissioned, with evidence, for the rebate to be claimed.
The dollar figures above and below come from our published rebate guide, checked July 2026. The accredited provider confirms the final amount for your home before any work.
Method, sources and review
We publish the working behind this tool rather than asking you to trust the number. The assumptions above are the ones the calculator actually uses. These are the sources they come from.
- Rebate estimates and eligibilityVictorian Energy Upgrades (Victorian Government)
- Indicative installed price rangesOur own Melbourne install pricing (Climate Control Solutions)
Current indicative VEU discounts
These are the same indicative air conditioner and heat pump rebate figures we publish on our VEU rebate page, by upgrade type and size. Split system, multi head and reverse cycle ducted rebates all appear below:
| Upgrade | Size | Indicative discount |
|---|---|---|
| Reverse cycle split | 2.5 kW | $1,000 |
| 3.5 kW | $1,200 | |
| 5.0 kW | $2,000 | |
| 7.1 kW | $2,500 | |
| Multi head split | 2 head units | $2,000 |
| 3 head units | $2,200 | |
| 4 head units | $2,800 | |
| 5 head units | $4,100 | |
| 6 head units | $6,000 | |
| Reverse cycle ducted | 10 kW, 4 to 5 outlets | $3,000 |
| 12.5 kW, 5 to 6 outlets | $3,700 | |
| 14 kW, 6 to 8 outlets | $4,200 | |
| 16 kW, 8 to 10 outlets | $4,800 | |
| 18 kW, 10 plus outlets | $5,500 |
Figures depend on the system being decommissioned, the new product, brand, model, kW capacity and postcode. Not sure which size you need? Try the air conditioner size calculator first.
How the VEU process works
Book an assessment
We check your current system, confirm the upgrade qualifies, and size the replacement properly for your home.
We handle the paperwork
The VEU claim runs through an accredited provider. You sign the consent forms; we do the rest.
Discount comes off upfront
The rebate is applied as an upfront discount on the installed price, and your old system is decommissioned with evidence.
The decommissioning step is not optional paperwork: without proof the old heater was removed, the rebate cannot be claimed. Our guide on why decommissioning is required explains what evidence is needed.
Eligibility basics
Most Victorian homes replacing an old heater qualify for something. The essentials:
Victorian premises
VEU is a Victorian Government program. Homes and many business premises qualify.
An existing system to replace
The discounts reward switching away from gas or inefficient electric heating, so a brand new install with no old unit to decommission generally does not qualify for the heating activities.
An approved product
The new system must be on the approved product list, which covers the major brands we install.
Renters can benefit too
Rental homes qualify. You will need the owner's written consent for the installation.
Concession card holders
Mention your card when booking. Larger discounts can apply with some offers.
Switching from gas is also where the running cost savings live. Once you know your rebate, use the running cost calculator to see what the same winter costs on reverse cycle.
Frequently asked questions
Who is eligible for a VEU rebate?
Victorian households and many business premises replacing gas or inefficient electric heating with an approved high efficiency reverse cycle system. Owners can proceed directly; renters need the owner's consent. Final eligibility is confirmed by the accredited provider before any work.
How much is the VEU rebate for reverse cycle air conditioning?
Indicatively, from around $1,000 for a small 2.5 kW split system up to around $6,000 for a large multi head setup, with ducted systems typically between $3,000 and $5,500 depending on size and outlets. The exact figure depends on the system being decommissioned, the new product and certificate prices at the time.
Do renters qualify for VEU discounts?
Yes. The discount attaches to the premises, not the owner, so rental homes qualify. The practical requirement is the owner's written consent for the installation, which most landlords give since the upgrade adds value to the property.
Why does my old heater have to be decommissioned?
The program pays for verified energy savings, and those savings only exist if the old inefficient system genuinely stops being used. Providers must submit evidence of decommissioning with the claim. Keeping the old heater running alongside the new one would void the rebate.
Is the rebate paid to me as cash?
No. It is applied as an upfront discount on your installed price through the accredited provider, so you simply pay the difference. There is no separate application or reimbursement process for you to manage.
How much is the air conditioner rebate in Victoria?
Under the Victorian Energy Upgrades program, replacing gas or old electric heating with a reverse cycle air conditioner attracts an indicative discount from around $1,000 for a small split system up to about $6,000 for a large multi head setup, with ducted systems typically $3,000 to $5,500. There is no separate air conditioner rebate to apply for; the discount comes off your installed price through an accredited provider. Enter your system above for a tailored figure.
Is there a rebate for a heat pump or reverse cycle system?
Yes. A heat pump for space heating is a reverse cycle system, and installing one to replace gas ducted heating or old electric heaters is a core VEU activity. The reverse cycle rebate depends on the system size and what you are decommissioning, and applies to split system, multi head and ducted reverse cycle installs. This calculator estimates it for your specific upgrade.
Why have VEU rebates gone down?
VEU discounts are funded by energy efficiency certificates whose market value moves over time, and the Victorian Government also revises the scheme rules and activity ratings. Both have tightened since the peak years, so rebates on some upgrades are smaller than they once were. The figures in this calculator are indicative July 2026 values, and your installer quote shows the exact discount on the day.
Find out exactly what your home qualifies for
Your estimate is a guide only. Our team confirms your eligibility, the current discount for your exact scenario, and handles the whole VEU process with the installation.
Book your free assessment Or call 0412 769 022. Curious about running costs? Estimate your savings.