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VIC · Victorian Energy Upgrades

Air Conditioning Rebate Victoria

Up to $5,500+ off reverse cycle air conditioning under the Victorian Energy Upgrades program — Australia's biggest aircon incentive, with the largest discounts for replacing ducted gas heating.

Up to $5,500+Off your install price
$200 / $1,000Co-payment (small / ducted)
2045Program extended until

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

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)

VIC Rebate FAQs

How much is the air conditioning rebate in Victoria?
Eligible Victorians can currently receive up to $5,500+ off a new reverse cycle system, with the largest discounts for replacing ducted gas heating. The exact amount moves with the VEEC certificate market price, so your quote will reflect the rate on the day.
What's the co-payment I keep hearing about?
Since mid-2025 the VEU program requires a minimum customer contribution: $200 (inc GST) for small non-ducted units and $1,000 (inc GST) for ducted systems, multi-head splits and units over 10kW. It's a quality measure — it means no 'free' installs, but the discounts remain substantial.
Can I get the rebate for a brand-new installation?
Generally no — the VEU aircon activity is a replacement incentive. You need an existing functioning heating or cooling system (ducted gas heater, electric heater, or old aircon) that gets decommissioned as part of the upgrade.
Do renters qualify in Victoria?
Yes — rental properties are eligible under the VEU program with the landlord's approval, and businesses can participate with an ABN.

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