Up to $5,500+Off your install price
$200 / $1,000Co-payment (small / ducted)
2045Program extended until
How Much Is the Victorian Air Conditioning Rebate?
The rebate isn't a fixed amount — it's calculated from the certificates (VEECs) your specific upgrade generates, so a larger, more efficient system replacing gas ducted heating earns far more than a small split swap. The table below shows indicative discounts at current VEEC prices; your quote reflects the rate on the day and the mandatory co-payment introduced in mid-2025.
| Upgrade | Indicative rebate | Co-payment |
|---|
| Single split system (replacing an old unit or heater) | up to ~$1,300 | $200 |
| Multi-head split (whole-home) | ~$2,500–$3,500 | $1,000 |
| Ducted reverse cycle (replacing ducted gas heating) | up to $5,530 | $1,000 |
Indicative only — amounts move with the live VEEC market price and your property. Check your exact rebate in 30 seconds →
Is the Victorian Government Air Conditioning Rebate Free?
You'll often see the VEU incentive advertised as a "free Victorian government air conditioning rebate," but since mid-2025 every upgrade carries a mandatory co-payment — $200 for small non-ducted units and $1,000 for ducted, multi-head and large systems. So it isn't a free air conditioner, but the discount off your install price is substantial, and for many gas-ducted replacements the remaining cost after rebate is a fraction of the full price. The older "free air conditioning Victoria" promotions you may remember pre-date the co-payment rules.
Why Victoria Pays the Most
Victoria's housing stock is the reason the VEU aircon incentive is Australia's largest: more than a million homes still heat with ducted gas, and moving a whole home off gas saves more lifetime energy than any other residential upgrade — which means more certificates, which means a bigger discount. That's why Melbourne gas-ducted replacements headline at up to $5,530 while a like-for-like split swap earns less. If you're on gas, run the savings calculator before any quote — the running-cost case usually beats even the rebate.
How the Victorian Aircon Rebate Works
Victoria runs the most generous air conditioning incentives in Australia through the Victorian Energy Upgrades (VEU) program. Eligible installations generate Victorian Energy Efficiency Certificates (VEECs), which accredited providers sell to energy retailers — and that value comes off your install price upfront. The program has been extended to 2045, and current discounts on reverse cycle systems run to $5,500 and beyond, with the biggest amounts for households replacing ducted gas heating.
- Largest incentives for replacing ducted gas heaters with reverse cycle systems (multi-head split or ducted)
- Old electric resistance heaters and inefficient air conditioners also qualify for replacement
- Discount applied upfront on your invoice — certificate value varies with the VEEC market price
- A mandatory co-payment applies: $200 for small non-ducted units, $1,000 for ducted, multi-head and large systems
VEU Air Conditioning Rebate: What the Program Covers
The VEU air conditioning rebate is the discount generated under the Victorian Energy Upgrades program when an approved reverse cycle system is installed by an accredited provider. It covers single splits, multi-head systems and whole-home ducted upgrades — the VEU ducted system rebate is the largest of the lot, especially where it replaces gas. Heating counts too: because reverse cycle both heats and cools, VEU heating rebates and aircon rebates are the same incentive, calculated from the certificates your upgrade creates. And if you've seen ads promising an "$8,000 VEU rebate," read the fine print — on most homes realistic discounts top out around $5,530 for a full gas ducted heating rebate changeover, and bigger headline figures usually assume the largest ducted systems at peak certificate prices.
Searching for the old Home Heating and Cooling Upgrades Program? That separate subsidy has closed — the Victorian Energy Upgrades program is the state's current pathway for heating and cooling upgrade discounts, with no household cap on participation and the same rules across metro and regional postcodes.
Who's Eligible in Victoria
Almost every Victorian household can participate — the program has supported over 2 million homes since 2009. The core requirement is replacing an existing functioning heating or cooling system (not installing where nothing existed), using an approved product installed by a VEU-accredited provider.
- Owner-occupiers and rental properties (with landlord approval) are eligible
- Businesses qualify with a valid ABN
- New systems must be approved reverse cycle models with a 5-year warranty (required since March 2025)
Replacing Ducted Gas Heating Earns the Biggest Rebate
The headline figure — up to $5,530 — applies when you replace a whole-home ducted gas heater with an efficient reverse cycle system — see the full ducted gas heating replacement guide for costs, changeover steps and what happens to the gas line. Decommissioning gas saves more lifetime energy than any other residential upgrade, which generates the most VEECs. If you're on gas, also run the gas vs reverse cycle savings calculator — the running-cost saving over the system's life often rivals the rebate itself. Old electric resistance heaters and inefficient air conditioners also qualify as the system being replaced.
How to Claim the VIC Aircon Rebate, Step by Step
There's no application form and no waiting for a refund — the discount is applied by the accredited provider before you pay. The whole process usually looks like this:
- 1. Check your eligibility — enter your postcode above and answer a couple of questions about your current heating or cooling.
- 2. Get matched and quoted — an accredited provider confirms your property qualifies, recommends an approved system for your home, and issues a quote with the VEU discount already deducted.
- 3. Installation and decommissioning — a licensed installer fits the new reverse cycle system and decommissions the old heater or aircon (that step is what generates the certificates, so it's not optional).
- 4. Paperwork handled for you — the provider creates and sells the VEECs; you never touch a certificate or a claim form.
Most installations are completed within one to three weeks of quote acceptance, depending on system availability and your area.
What You'll Actually Pay After the Rebate
The honest answer competitors rarely give: your out-of-pocket cost is the installed price minus the VEEC discount, and it can never fall below the mandatory co-payment. As a realistic guide at current certificate prices:
| Upgrade | Typical installed price | Typical out-of-pocket after rebate |
|---|
| Single split (2.5–3.5kW) replacing an old unit | $2,200–$3,200 | from ~$1,000–$2,000 |
| Large split (7–8kW) replacing an old heater | $3,500–$5,000 | from ~$2,200–$3,700 |
| Multi-head split replacing ducted gas | $8,000–$14,000 | from ~$5,000–$10,500 |
| Ducted reverse cycle replacing ducted gas | $9,000–$16,000+ | from ~$4,500–$11,000 |
Every home differs — system size, access, ducting condition and the live VEEC price all move the number. Treat quotes far below these ranges with caution: prices well under market usually mean an undersized system, rushed workmanship or scope cut from the job.
Why the Exact Rebate Amount Moves
VEU discounts aren't set by the government as a fixed dollar figure. Your upgrade generates a number of Victorian Energy Efficiency Certificates (VEECs) based on how much lifetime energy it saves, and those certificates trade on an open market — energy retailers must buy them to meet legislated targets. When the VEEC price rises, discounts grow; when it dips, they shrink. That's why every honest provider quotes "up to" figures and why your quote reflects the certificate price on the day. It's also why a bigger, more efficient system replacing gas earns more than a small like-for-like swap: more energy saved, more certificates, bigger discount.
New Efficiency Rules Are Coming in 2027
Victoria has legislated new home energy efficiency requirements that begin phasing in from 2027, including minimum standards for rental properties. For landlords especially, that changes the maths: an efficient reverse cycle upgrade done now captures today's VEU discount and gets ahead of compliance obligations that are already on the calendar. Rental properties are eligible for the rebate with landlord approval, and tenants and owners are encouraged to plan upgrades together — see the official Victorian Energy Upgrades guidance linked below for the current detail.
Choosing an Approved System
Only systems on the VEU product register qualify, and since March 2025 new units must carry a five-year warranty. Hundreds of approved reverse cycle models are listed across the major brands — see our guides to Daikin, Mitsubishi Electric, Mitsubishi Heavy Industries, Midea, Rinnai, Haier, Emerald and Hisense — and your provider will confirm the exact model is registered before quoting. Two of our free tools are worth running before you accept any quote: the sizing calculator tells you what capacity your rooms actually need (oversized systems waste money twice — upfront and every quarter), and the AI running cost calculator reads your current unit's rating plate from a photo and shows what it's really costing you per year, so you can see the savings case for yourself rather than take anyone's word for it.
Melbourne & Regional Victoria
The rebate applies statewide — there's no metro-only restriction. Whether you're after an aircon rebate in Melbourne or heating and cooling rebates across regional Victoria, the same VEU rules and discount amounts apply, delivered by accredited providers covering your area. Enter your postcode and we'll match you with one near you.