VEEC calculations for Air Conditioning upgrades change 1 Feb 2024
Aircon Installers: Read Up On The 2024 VEEC Calculation Changes and take advantage of the rate adjustments
What’s Changing
On 1 February 2024, the VEU Electricity Emissions factor - used to calculate VEECs - is dropping to 0.5334 to reflect our cleaner, greener energy system.
For upgrades completed before 1 February 2024, the current emissions factor - 0.6738 - applies to the VEEC cashback claim.
So what does this mean for my VEEC Cashback Claims
For retailers, installers and customers, it means less cashback for replacing electric heating and cooling systems and new installations, and improved incentives for replacing gas heating.
Here are some general examples:
Cashback changes for gas heating upgrades
A 6kW AC split system replacing a gas wall heater in metro Melbourne on or after 1 Feb 2024 can expect to receive around 16 VEECs, or $880.00 at current $55.00 buy-back price.
Upgrades completed before 1 Feb 2024, can expect around 15 VEECs ($825.00) under the current calculation formula.
That’s a 7% increase in cashback when installed in February.
Ducted gas heating upgrades to ducted AC will also receive around 7% increase in cashback after the calculation change comes into effect.
A 16kW premium ducted AC system replacing ducted gas in Metro Melbourne can expect to receive around 60 VEECs, or $3,300.00, when installed on or after 1 Feb 2024. Up from around 56 VEECs when installed in Jan 2024.
That’s an extra $220.00 discount for customers.
Cashback changes for electric heating upgrades
A 6kW AC split system replacing a hard-wired electric room heater in metro Melbourne before 1 Feb 2024, can expect around 20 VEECs or $1,100.00 at current $55.00 buy-back price.
The same upgrade, same house, completed on or after 1 Feb 2024 can expect to receive around 16 VEECs ($880.00) under the revised calculation formula.
That’s a 20% decrease in cashback when installed in February.
Upgrades from electric slab heating or electric ducted heating to ducted AC system can also expect a significant reduction in cashback after the calculation change comes into effect.
A 16kW premium ducted AC system replacing an electric slab heater in Metro Melbourne can expect to receive around 106 VEECs, or $5,830.00, when installed on or after 1 Feb 2024. Down from around 134 VEECs when installed in Jan 2024.
That’s $1,540.00 more out-of-pocket for customers if they put off upgrading to efficient reverse cycle heating and cooling for their home.
3 ways to manage this change with ease
Keep 1 Feb 2024 in mind when quoting and scheduling jobs.
Complete your air conditioning upgrades that replace electric heating/cooling systems before 1 February to avoid the VEEC cashback reduction you quoted for your customers.
Relax. The calculation changes apply to the installation date, not your claim submission date.
Cashback for jobs completed in Jan 2024 will continue to be calculated at the current rate, even if you don’t get round to doing the cashback claim later.
Upgrades completed in 2024 have until 30 June 2025 to claim the VEECs, but we recommend submitting claims as soon as possible to unlock the cash you’re entitled to.
Use your evidence collection app as your quote tool
It’s much simpler than trying to use the VEU calculator.
To check how the emissions factor change will affect your preferred products and upcoming jobs, log in to your evidence collection app and start a new assignment form with an installation date of 1 February 2024.
Don’t have an account with Green Energy Trading? Sign up today.
Expect more Calculation Changes in 2025
The VEU calculation factors are legislated to change again in 2025, impacting VEECs calculated for upgrades completed from 1 Feb 2025.
A regulatory review will be commencing in 2024 to set targets and update regulations for the VEU for 2025 onwards.
We expect to get more detail and insights into future emission factor reductions over the coming year.
Subscribe to our updates and we’ll keep you up to date with pricing and scheme changes so you can adapt to VEU program changes with confidence.
If you have further questions, please don’t hesitate to call us.
1300 077 784