New Cashback and Eligibility Changes for Water Heaters in Victoria
The Victorian Energy Upgrades (VEU) program is making significant changes to water heating activities in May and June 2023.
These changes are all part of Victoria's Gas Substitution Roadmap. To find out more about the roadmap, click here.
To help you navigate the changes, we’ve created a comprehensive list of Frequently Asked Questions about how to work with the new acitivities.
Frequently Asked Questions about the changes in Water Heating Activities
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Current activities incentivising the installation of high-efficiency gas systems are being removed from the scheme. New activities incentivising the removal of old gas systems are being introduced to the scheme
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New activities will be introduced to the scheme on 31 May 2023
Old activities will be removed from the scheme on 30 June 2023. You will have until this date to complete any VEEC eligible upgrades. You will still be able to claim VEECs for these upgrades until 30 June 2024.
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1C – Water Heating - Electric boosted solar replacing electric resistance
1D – Water Heating – Heat Pump replacing electric resistance
3C –Water Heating – Heat Pump replacing Gas
3D – Water Heating – Electric boosted solar replacing Gas
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To be eligible to claim VEECs for your new hot-water system you must be replacing an old hot-water system.
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Systems which are broken down are eligible to be replaced under Activity 1C/1D and 3C/3D.
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Yes, provided it is on the CEC approved product list. Click this link to access the CEC approved water-heaters
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Yes. You can check the approval status of the product here: VEU Registry
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Geo-tagged photos must show:
• The existing product before the upgrade
• The brand, model and serial number of the existing product
• The existing product either disabled or rendered permanently unusable (where the product is not being removed from premises for disposal)
• The new system compliance plate, showing the brand, model and serial number of the existing product)
• The new system in situ, showing the whole tank after installation
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Manifold or in-line systems will not be eligible to claim VEECs
This is because the new systems have not been designed to operate in this way and may not operate as intended or provide the assumed (i.e., “modelled”) energy reductions.
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Yes and no!
Independent systems: If the two systems are independent and only one breaks down and is replaced this would be an eligible VEEC scenario. Similarly, if you were to replace both hot-water systems and they were not manifolded this would be eligible to create VEECs.
Manifold (in-line systems): If the two systems were manifold and one breaks down you would not be able to replace it and claim VEECs.
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Gas-boosted solar water-heaters are deemed more efficient than heat-pumps water-heaters meaning they will not be eligible to claim VEECs upon upgrade.
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As it is difficult to monitor or prove the system has been configured to operate during sun hours it has been determined that additional VEECs will not be possible.
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Systems up to 700L for both residential and commercial properties are eligible to claim VEECs.
The same limit applies to electric-boosted water-heaters and matches the limit under Activity 44.
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Yes - the building where the upgrade is taking place must be more than two years old. There is no restriction on the age of the system being replaced.
Code of Conduct and customer satisfaction requirements:
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Installers/sellers are obligated to provide several documents to end consumers to ensure they meet the requirements of the VEU program. These include:
• The VEU Consumer Fact Sheet,
• The VEU Consumer Statement of Rights. For all installations, end consumers must be provided with a copy of the statement of their rights and obligations about the contract, before entering a contract.
• The water heating Sizing Fact Sheet. For all water heating installations, end consumers must be provided with a copy of the VEU Sizing Fact Sheet at the point of sale (i.e., prior to installation) of the system.
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You can find copies of the Consumer Fact Sheet and details about the VEU Code of Conduct here
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The VEU water heating sizing fact sheet can be found here
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Under sized systems will not be capable of delivering the necessary hot water.
Over sized systems will mean energy and emissions savings are missed.
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The fact sheets provide general sizing recommendations. A more detailed assessment by licensed installers will be required to ensure the product installed fits the needs of the consumers. In addition, the features and capabilities of products available under the VEU program vary. For this reason, accredited providers and scheme participants are not mandated to install a system that aligns with the recommended sizing range in the fact sheets.
If the system does not meet the sizing guidelines this is okay however an explanation as to why the sizing recommendation was not followed will be required.
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If the removal will require major patch-up work it is expected this will be negotiated between the end consumer and installer prior to the works being agreed to. If minor patch-up work is required it is expected this will be completed by the installer as required.
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To help monitor compliance with the VEU code of conduct obligations.
The code places obligations for lead generators to disclose information to consumers, including their company details and the name of the accredited person creating certificates. The code also requires us to keep accurate records of any lead generation or marketing activities conducted on our behalf by third parties.
Decommissioning
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No - old systems must be rendered permanently inoperable or destroyed and cannot be re-sold.
Any waste or debris generated by the upgrade, including the decommissioned product (where it is practical and safe to remove the decommissioned product), must be removed from the consumer’s premises and disposed of in accordance with all applicable waste management legislation.
This means you cannot keep your system onsite to be repurposed for some other reason.
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All replaced systems must be decommissioned by:
A plumber if the installation involves plumbing work; or,
An electrician if the installation involves electrical work
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Old systems can be left onsite and in place under the following circumstances:
where removal is impractical (e.g. central electric resistance heating systems and slab heating systems)
where removal would result in substantial remediation work to the building environment
where removal would raise safety risks (e.g. where removal of product raises asbestos issues and/or other health and safety issues)
If the old product is not safe and practical to remove, it is the commission’s expectation that consumers are informed that the product will be left in-situ before the consumer agrees to undertake the upgrade.
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You’ll need to provide photos showing the method of decommissioning and possibly the reason as to why it was unsafe/impractical to remove the old system.
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The decommissioning details need to be listed on either the Plumbing CoC or the CoES.
The certificate must detail:
the type of the product decommissioned
the brand and model of the decommissioned product where visible
the method of decommissioning.
Meeting the AS/NZS 3500.4 Standard
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This is the Australian Standard that sets out the requirements for the design, installation and commissioning of heated water services using drinking water or rainwater or a combination thereof. It includes aspects of the installation from, and including, the valve(s) on the cold water inlet to any cold water storage tank or water heater and the downstream fixtures and fittings. It applies to new installations as well as alterations, additions and repairs to existing installations.
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This standard applied to all plumbing work on heater water services in Victoria. It means insulation requirements for circulatory piping have increased and a new requirement that circulating heated water piping of solar water heating systems with remote containers shall have insulation. Essentially, pipes need to be insulated because it is a requirement of Standards Australia.
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Poor installation practices include inadequate insulation of external pipes and inappropriate airflow clearances which directly affects energy efficiency, incorrect installation of the pressure and temperature relief valve and heat pump or tanks not being appropriately secured which raises safety concerns. Water heating products that are unsuitable for the installation environment or that have been poorly installed are not compliant with the program rules and ineligible for Victorian energy efficiency certificates.
You can rely on Geo to quote cashback
Make creating a new assignment form in Geo part of your quoting process. Geo will show you which cashback your job can claim based on the installation date.
For jobs scheduled after 30 June 2023 - Remember
No Cashback for:
❌Installations of new Gas storage, Gas instantaneous or Gas boosted solar that replace gas or electric water heaters.
Cashback for
✅ New Electric boosted Solar or Heat pump water heaters replacing Electric water heaters
✅ New Electric boosted Solar or Heat Pump water heater replacing Gas water heaters (from 31 May)
We are here to help you adapt your business to these cashback changes.
CALL US ON 1300 077 784