VEU Rebate 2026 Changes:
Victoria Heating & Cooling Rebates Explained
On This Page
Heating Rebates Victoria 2026: What Homeowners Need to Know
If you’re considering replacing an old gas heater or upgrading your home’s heating and cooling, you may be able to reduce the cost through the Victorian Energy Upgrades (VEU) program.
The VEU program provides incentives for eligible energy-efficient upgrades across Victoria. For heating and cooling, eligible homeowners may be able to receive a discount when replacing certain existing heating systems with an efficient reverse-cycle air conditioner.
But how much can you save, which systems qualify, and what should you know before booking an installation?
Here’s a simple guide to heating rebates in Victoria for 2026.
What Is the VEU Heating Rebate?
The Victorian Energy Upgrades program encourages households to replace older, less efficient equipment with energy-efficient alternatives.
For eligible heating upgrades, discounts are supported through Victorian Energy Efficiency Certificates (VEECs). The available discount depends on the specific upgrade, the existing heating system and the requirements applying at the time of installation.
There isn’t one standard rebate amount for every Victorian home.
That’s why it’s important to check your eligibility and the available discount before purchasing a new heating system.
How Much Is the Heating Rebate in Victoria?
Current Victorian Government information lists maximum discounts of up to:
- $1,610 for eligible replacement of an existing gas space heater with an efficient reverse-cycle air conditioner.
- $5,530 for eligible replacement of an existing ducted gas heater with an efficient reverse-cycle air conditioner.
These are maximum advertised discounts, not guaranteed amounts for every installation. Your actual discount will depend on your property, existing system, replacement equipment and applicable VEU requirements.
The program is also changing during 2026, so older websites may show rebate information that is no longer accurate.
Can You Replace a Gas Heater With a Reverse-Cycle System?
Yes, an eligible gas heating system can potentially be replaced with an efficient reverse-cycle air conditioner under the VEU program.
This can be an attractive option because reverse-cycle systems provide both heating and cooling.
During winter, the system provides warmth by transferring heat into your home. In summer, it reverses the process to cool your living spaces.
For many Victorian households, this means one modern system can provide year-round comfort.
Why Consider Reverse-Cycle Heating?
Replacing an ageing heater isn’t just about accessing a rebate.
Modern reverse-cycle systems can offer several advantages:
- Heating and cooling in one system
- Efficient operation
- Inverter technology
- Better temperature control
- Reduced reliance on gas heating
- Potentially lower running costs
- Modern controls and features
Your actual energy savings will depend on your home, usage, electricity prices and the system you choose.
Which Heating System Is Right for Your Home?
The best system depends on your property and how you use it.
Split Systems
Split systems are well suited to individual rooms and open-plan living areas. They can be a practical option for apartments, smaller homes, bedrooms and living spaces.
Multi-Split Systems
Multi-split systems allow several indoor units to connect to a single outdoor unit. They can be useful when you want heating and cooling across multiple rooms.
Ducted Reverse-Cycle Systems
Ducted systems distribute conditioned air throughout the home and can provide whole-home heating and cooling.
If you’re replacing an existing ducted gas heater, a ducted reverse-cycle system may be worth considering.
Why Correct Sizing Matters
Choosing the biggest air conditioner available isn’t necessarily the best approach.
A system needs to be appropriately sized for the area being heated or cooled. Factors such as insulation, room layout, windows, ceiling height and the home’s construction can affect the required capacity.
The VEU program is also introducing changes around larger reverse-cycle installations during 2026. From 30 September 2026, changes affecting certain larger multi-split and ducted systems are scheduled to apply, including incentive limits and minimum customer contributions.
For homeowners, this makes professional system selection particularly important.
Who Is Eligible for a VEU Heating Discount?
Eligibility depends on the specific VEU activity and the equipment being replaced and installed.
Your existing heating system, the replacement product and installation requirements all need to meet the relevant conditions.
Before arranging an installation, confirm:
- Whether your existing heater is eligible
- Whether the proposed system qualifies
- What discount is available
- What your final cost will be
- Whether additional installation charges apply
Renters may also be eligible for certain VEU upgrades, although landlord approval may be required.
Do You Need a VEU-Accredited Provider?
VEU discounts are processed through accredited providers.
Working with an experienced provider can make it easier to confirm eligibility, select an appropriate system and complete the required documentation.
It’s also important to confirm the rebate before installation rather than assuming an upgrade will automatically qualify.
What Should You Consider Besides the Rebate?
The biggest rebate doesn’t necessarily mean the best heating system.
When comparing your options, consider:
System efficiency: A more efficient system can help reduce energy consumption over its lifetime.
Correct capacity: Your system should be sized for your property rather than simply choosing the largest model.
Installation quality: Correct positioning, airflow and installation can have a significant effect on performance.
Heating and cooling needs: Think about whether you need to heat one room or the whole home.
Long-term costs: Compare the purchase price, rebate, electricity consumption, maintenance and expected lifespan.
What About Insulation?
Even an efficient heating system can struggle in a poorly insulated home.
If your property loses heat quickly through the ceiling, walls, windows or gaps around doors, your heating system may need to operate for longer to maintain a comfortable temperature.
Improving insulation and reducing draughts can therefore complement a heating upgrade.
The VEU program is also expanding its support for eligible ceiling insulation from 1 October 2026.
How to Get Started With a Heating Rebate
If you’re thinking about replacing your heater, the process can be straightforward.
1. Tell us about your existing system
Let us know what type of heater you currently have and what you want to replace it with.
2. Check your eligibility
We’ll help determine whether your property and proposed upgrade meet the relevant VEU requirements.
3. Choose the right system
We’ll consider your home’s requirements and recommend a suitable heating and cooling solution.
4. Confirm your price
Make sure you understand the applicable discount, installation costs and final amount you’ll pay.
5. Arrange your installation
Once everything is confirmed, your new system can be installed in accordance with the relevant requirements.
Why Choose Planet Green Australia?
At Planet Green Australia, we help Victorian households access energy-efficient upgrades through the Victorian Energy Upgrades program.
Whether you’re replacing an old gas heater, looking for a reverse-cycle air conditioner or exploring other energy-efficiency improvements, our team can help you understand your available options.
We can help with the process from eligibility and product selection through to installation, making it easier to upgrade your home with an energy-efficient solution.
Frequently Asked Questions
How much is the heating rebate in Victoria in 2026?
The available discount depends on the VEU activity and your existing and replacement equipment. Current government information lists maximum discounts of up to $1,610 for eligible gas space heater replacements and up to $5,530 for eligible ducted gas heater replacements.
Can I get a rebate for replacing my gas heater?
You may be eligible if your existing heater, replacement system and installation meet the current VEU requirements.
Does the VEU program cover reverse-cycle air conditioners?
Eligible reverse-cycle air conditioner upgrades are supported under the VEU heating and cooling activity.
Do all air conditioners qualify?
No. The product and installation must meet the requirements of the applicable VEU activity.
Can renters receive heating rebates?
Renters may be eligible for certain VEU upgrades, although approval from the property owner may be required.
Check Your Heating & Cooling Rebate Eligibility
If your old heater is becoming expensive to run or you’re looking for a more efficient way to heat and cool your home, it may be worth checking what VEU support is currently available.
Contact Planet Green Australia today to check your eligibility and explore your heating and cooling upgrade options.
