Changes have been made to the Victorian Energy Upgrades (VEU) program for Water Heating (1/3, 44) and Space Heating/Cooling (6) activities following 2024 industry consultations.

1. New Minimum Co-Payment Requirements

Effective 1 February 2025, all VEEC claims for Activities 1/3 and 6 must meet the following minimum co-payments:

• Activity 1/3: $200 per system

• Activity 6:

• $200 per system (small single split systems)

• $1,000 per system (ducted or larger split systems)

A "co-payment" is an out-of-pocket payment made by a the end consumer to you for each system installed.

In most cases the minimum co-payment amount will already be met without requiring anything further but where this does not happen you may be required to charge the client an extra out-of-pocket amount.

The co-payment must be made by the end consumer before submitting your claim. Claims not meeting these requirements will be ineligible for VEEC creation.

2. Mandatory Five-Year Product Warranty

From 1 February 2025, a five-year product warranty is required:

• Activity 1/3: For all VEU-approved products

• Activity 6: For all VEU-approved products (excluding systems with >39kW cooling capacity).

• Activity 44: For products with insulated storage ≤700L.

Consumers must receive documentation outlining warranty details and contact information for system failures. Products failing to meet this requirement may lose approval or eligibility for VEECs.

3. Updated Decommissioning and Disposal Requirements

Effective 10 February 2025, the following rules apply when decommissioning water and space heating/cooling systems:

• Decommissioned Gas Products: Redundant pipes must be sealed/capped (AS/NZS 5601.1).

• Decommissioned Electric Products: Redundant wiring must be terminated/isolated (AS/NZS 3000).

• Photo Evidence: Provide geo-tagged photos showing:

  • The method of rendering the old system unusable. This will now be required EVEN WHEN the old system is being removed for recycling.

  • Wide-angle views of old and new products in situation.

  • The gas line being capped (only when replacing gas systems). This must also be described on the VBA Certificate of Compliance.

    • For Activity 1/3:

      • Include pipework and the TPR valve drain line location.

      • Redundant pipes being sealed and capped.

      • Redundant wiring being terminated/isolated.

All existing products must be rendered permanently inoperable and removed/recycled. Old systems can only be left on site where the removal of that system is unsafe and/or impractical to do so. If a product is not removed a justification is required in Geo and additional quality assurance checks undertaken by Green Energy Trading.

4. Re-Use of Existing Ducting (Activity 6)

From 10 February 2025, additional checks are required when re-using existing ducting. To ensure the suitability of the re-used ducting you will be required to confirm it is:

• Undamaged and in good condition.

• Compliant with AS 4254.1.

• Correctly sized for the new RCAC system.

Green Energy Trading will verify this via additional quality assurance checks before processing VEEC payments.

5. Enhanced Product Sizing Requirements (Activity 6)

New requirements for multi-split RCAC systems in residential premises take effect 10 February 2025. Installers must:

• Provide details for each room (size, room type, proposed kw output of indoor head).

• Obtain end consumer sign-off on the sizing information on or before the installation date

Geo will be updated to include these additional fields for input when installing VRF systems. We will also require the quotation sent to the end consumer be provided which lists these details, and will form proof of sizing acceptance prior to installation.

For further details, visit the ESC website: ESC Updates on VEU Program.

Green Energy Trading is updating Geo to align with these changes by the stated dates. Contact us for any questions or assistance.