As with the rest of the world, the Australian climate is getting weirder and warmer year over year. Rainfall is shattering records in Queensland, South Australia experienced one of the longest prolonged droughts this summer in the last three decades and Perth recorded the hottest March — with mercury crossing 40C notch — in 40 years.
Such climatic conditions have necessitated homeowners and businesses to have a climate controller — colloquially known as an air con unit — which could control/set the temperature in a desired or comfort range.
As the climate becomes more extreme, the uptake of air conditioners in Australia rose proportionately. In 1999, only 35% of Australian households had air conditioning units. In the next 10 years, it got doubled — 70% of Australian households had air conditioners.
The cost of cooling Australian homes rose from 2.9 billion to 3.1 billion, a 6.89 percent increase, during the 2024 summer months. Space heating is also responsible for a significant spending in households. It accounts for over one-third (35 percent) of the total energy use in Australian households.
The dramatic rise in the cost of space heating and cooling in Australian homes and along with the frequent heatwave events calls for a low-cost and energy-efficient solution for cooling Australian homes and businesses.
These factors caused the Victorian state government to bring heating and cooling upgrades under the flagship Victorian Energy Upgrades program in 2021.
Under the heating and cooling upgrades activities of the Victorian Energy Upgrades or VEU program, Victorian households and businesses are eligible to receive rebates for replacing their electric air conditioners with energy-efficient split system (reverse cycle) air conditioning units.
How does Victoria government air con rebate work?
To get the split system air conditioner rebates under the Victoria government rebate program, the process is simple. First, reach out to a VEU program accredited installer (such as iPromise Australia), share the requisite information and discuss your space heating and cooling requirements with them.
Based on the details you share, the installer will offer a quote and timeline for the decommissioning of the existing space air conditioning unit and installation of a new reverse cycle split or multi split air conditioning units.
A rebated split system air-conditioning unit(s) will be installed on the scheduled date, and you can expect a significant reduction in air-conditioning costs thereafter.
Who are eligible for split-system air conditioner rebates?
All Victorian homes and businesses are eligible for the air conditioning rebates under the Victorian Energy Upgrades scheme. A Victorian household or business can either:
- Apply for a new split system air conditioner installation (if the household does not have an existing space air conditioning system)
- Or apply for decommissioning of existing air conditioning unit and replacing it with a new split system air conditioner under the VEU program space heating and cooling upgrades.
In the second scenario where decommissioning is involved, the following old space air conditioning unit are eligible to be decommissioned:
- A hard-wired electric resistance room heater
- A non-ducted refrigerative air conditioner
- A central electric resistance heating system
- A ducted refrigerative air conditioner
- A ducted reverse cycle air conditioner
- A non-ducted reverse cycle air conditioner
- A ducted gas heater
- A non-ducted gas heater
Which products are eligible for air conditioning rebates?
The Victoria government has listed all the eligible reverse cycle split system air conditioner on VEU program registry. Currently, there are 736 split system air conditioners listed under Activity 6(23) of the VEU program and all major brands, such as Carrier, Daikin, Emerald Energy, Mitsubishi Electric and Toshiba, are included in the approved list of split system air conditioning products.
Victoria Homeowners and businesses can either select a product of their choice from the VEU program product registry list, or ask an accredited installer to assess the space air-conditioning requirement and patterns. The accredited installer can then install a suitable/feasible split system air conditioner based on the assessment.
What are regulatory requirements of Victoria government air con rebate scheme?
In addition to eligibility criteria of the Victorian households and businesses, an accredited installer must meet regulatory requirement of Victorian Energy Upgrades program to become eligible for applying for rebates on the behalf of a Victorian household/business.
Air conditioning product requirements
An accredited installer must install a split system (reverse cycle) air conditioner that meets the following conditions:
- The air conditioning unit must be registered to Greenhouse and Energy Minimum Standards (Air Conditioners up to 65kW) Determination 2019.
- The global warming potential (GWP) of the refrigerant used in the selected split system air conditioner must be less than 700.
- The selected split system air-conditioner must be covered by a warranty against defects for a period of at least 5 years from the date of installation/purchase.
- The air conditioning unit must be listed on the VEU product registry.
- The unit must meet the minimum energy-efficiency requirements as mentioned in the heating and cooling activity upgrade of the VEU program.
Licensing of installers
All installers (plumbers, electricians, and refrigerant handler) involved in the decommissioning of old air conditioning unit and installation of the new reverse cycle air conditioning system must be licensed from the concerned licensing authority.
- All electrical work must be performed by an electrician licensed (Grade A) by Energy Safe Victoria.
- All plumbing work must be undertaken by a plumber licensed by Victorian Building Authority (VBA). If the upgrade involves decommissioning of gas heaters, the plumber undertaking the decommissioning must be licensed by the VBA in gas-fitting work.
- The fluorocarbon refrigerant handling work must be undertaken by a person licensed by the Australian Refrigeration Council (ARC).
Regulatory requirements for decommissioning
Accredited installers must comply with the following VEU program guidelines for decommissioning and disposal of existing air-conditioning units:
- The installer must ensure that the decommissioning is done in such a way that the old air-conditioning unit cannot be re-used again.
- All waste generated during the decommissioning must be removed and disposed in accordance with relevant waste management regulations under Environment Protection Act 2017.
- The installer and the user (business/household) must declare — and share the declaration to Essential Services Commission — that “the decommissioned product was not installed for the purposes of decommissioning it as part of an activity under the program.”
