Reverse Cycle Air Conditioner Rebate Victoria (2026): VEU Heating and Cooling Discount
The discount follows the system you remove
This is the single fact that most competitor pages get wrong, so it is worth putting in front.
| What you are getting rid of | Maximum discount | Typical annual bill saving |
|---|---|---|
| A non-ducted gas space heater, such as a single-room heater, being installed or replaced with efficient reverse cycle | up to AUD 1,610 | up to AUD 460 |
| A ducted, whole-of-home gas heater being removed or replaced with efficient reverse cycle | up to AUD 5,530 | up to AUD 1,140 |
Both lines are quoted from the Victorian government’s own heating and cooling page, checked on 5 November 2026. The gap between them is roughly AUD 3,900, which is why a quote that does not state your removal category is not comparable to another quote.
The page does not publish a figure for every starting condition. If your home currently runs electric bar heaters, hydronic heating, or something else, ask the provider to confirm which activity your removal falls under rather than assuming a number from this table applies.
Who qualifies and what the product must be
Eligibility is broader than most installers imply: all Victorian households and businesses, and private rental properties are eligible too. There is no income test on this route — that is the Solar Homes hot water rebate, which is a different programme.
The product has to meet all three of these:
- Approved under the Victorian Energy Upgrades program.
- A high-efficiency reverse cycle air conditioner that provides both heating and cooling.
- A minimum 5-year warranty where the installation is at a home.
Room, multi-split and ducted models can all qualify, which matters because “ducted” and “multi-split” are exactly where the price spread is widest.
How the money actually reaches you
Nobody lodges this with the government on your behalf except the provider. The stated process is that an accredited provider — or an installer working under one — confirms which models are eligible, builds the discount into your quote, installs, and handles the paperwork including any electrical or plumbing certificates.
Two consequences people get burned by:
- Do not buy the unit first. The Victorian guidance is explicit that you should contact an accredited provider before purchasing or installing, and that retrospective discounts are typically not possible.
- Your own installer still needs an accredited partner, and that arrangement has to exist before work starts, not after.
There is a second, federal layer
Some air source heat pump systems also create small-scale technology certificates. The Clean Energy Regulator keeps a register of eligible solar water heater and air source heat pump models, and it sets five postcode zones for air source heat pumps — the certificate count comes from zone, capacity and the deeming period, and the certificates are then sold at market price.
Practical effect on a quote: you may be looking at two separate reductions, a VEU discount and an STC-based one. Ask for them as two named lines. A single unlabeled “government rebate: $X” is where the truth about which scheme is being claimed disappears.
The 1 March 2027 rental rules
From the same Victorian pages: new minimum energy efficiency standards for rental homes begin 1 March 2027. When a space heater in a rental fails and cannot be repaired after that date, it must be replaced with an efficient reverse cycle air-conditioner with an outlet in the main living area, and rental homes must also have efficient cooling in that space at the start of a new lease.
For landlords this turns a comfort upgrade into a compliance item with a known trigger date, and the discount above is the cheapest way to do it on your own schedule rather than in a winter emergency. Details on the 2027 gas hot water rule page.
What we are not publishing here
No installed price. We found no official Victorian figure for the cost of installing a residential reverse cycle system, so we do not print one. The AUD 2,000-6,000 range that appears elsewhere on this site is a New South Wales Government number for heat pump hot water, and it is not a substitute. Get three quotes and read the discount lines.
No per-model discount amounts. The ceiling depends on the activity and the certificates generated, so the only number that counts is the one on your quote.
One timing caveat for our own updates: the Victorian state election is 28 November 2026 and the caretaker period begins 6 pm on 3 November 2026, during which government pages are only updated on an exception basis. If this page looks out of date within that window, re-check the source rather than assuming nothing changed.
What to insist on in writing
- Which removal category your job falls into, and the discount tied to it.
- The exact model, and that it appears on the VEU approved-product list.
- The warranty term — 5 years minimum for a home.
- That the provider is accredited, and who signs off the certificates.
- VEU discount and any STC reduction shown as two separate lines.
Related
- Heat pump cost Australia — what every state pays right now
- Victoria heat pump hot water rebate — the other Victorian route, which does stack
- Victoria’s 2027 gas rule — the rental dates landlords should plan around
- Payback calculator — put your own quote and bill through it
| Program | Level | Amount / terms | Status | Source | Checked |
|---|---|---|---|---|---|
| Small-scale Renewable Energy Scheme (STC) discount Federal · certificate | federal | No fixed national amount. Certificates are created from a deemed calculation based on postcode zone, system size and the deeming period, then sold at market price — the CER publishes the calculator and the model register The model must appear on the CER Register of solar water heaters, which lists eligible solar water heater and air source heat pump models; installation date drives the deeming period | Active | Clean Energy Regulator | 2026-11-05 |
| Victorian Energy Upgrades — heating and cooling discounts VIC · certificate | state | Up to AUD 1,610 discount and about AUD 460 a year saved when replacing a non-ducted gas space heater with an efficient reverse cycle system; up to AUD 5,530 off and about AUD 1,140 a year saved when removing or replacing a ducted whole-of-home gas heater All Victorian households and businesses, including private rentals. Product must be approved under the VEU, be a high-efficiency reverse cycle air conditioner providing both heating and cooling, and carry a minimum 5-year warranty for homes. Work must go through an accredited provider; retrospective discounts are typically not possible | Active | Victorian Government — Energy (VEU products) | 2026-11-05 |
Frequently asked questions
Is there a rebate for a reverse cycle air conditioner in Victoria?
Yes, through the Victorian Energy Upgrades program rather than the Solar Homes rebate. It is a certificate-based discount applied at point of sale, and its size depends on the heating system you are removing or replacing.
Why do installer sites quote AUD 1,000 to 3,000?
That range is a guess about an average job, not a published figure. The Victorian pages set two specific ceilings by starting condition — up to AUD 1,610 from a non-ducted gas space heater and up to AUD 5,530 from a ducted whole-of-home gas heater — so ask which category your removal falls into before comparing quotes.
Can I claim if I already bought the unit?
Almost certainly not. The Victorian pages state that retrospective discounts are typically not possible, and that the accredited provider must handle the paperwork. Choose the provider before you buy the equipment.
Does the unit have to heat and cool?
Yes. The requirement on the page is an approved high-efficiency reverse cycle air conditioner that provides both heating and cooling. Room, multi-split and ducted models can qualify.
Is a warranty really required?
For a home, yes — the product requirements state a minimum 5-year warranty. A quote that does not name the warranty terms is describing a system that may not qualify.
I rent. Can I ask for this?
Private rental properties are eligible, but the discount route belongs to the property owner and their accredited provider. From 1 March 2027 the rental rules get sharper: a failed space heater that cannot be repaired must be replaced with an efficient reverse cycle system, and new leases must provide efficient cooling in the main living area.
Do businesses get the same amounts?
Businesses are eligible for the program, but the published household ceilings above are stated for homes. The Victorian pages describe separate business routes for larger hot water and heating loads, so treat commercial figures as a quote-specific question.
Sources
- Victorian Government — VEU heating and cooling discounts — https://www.energy.vic.gov.au/victorian-energy-upgrades/products/heating-and-cooling-discounts · accessed 2026-11-05
- Clean Energy Regulator — calculate small-scale technology certificate entitlements — https://cer.gov.au/schemes/renewable-energy-target/small-scale-renewable-energy-scheme/small-scale-technology-certificates/calculate-small-scale-technology-certificate-entitlements · accessed 2026-11-05
- Solar Victoria — hot water rebate — https://www.solar.vic.gov.au/hot-water · accessed 2026-11-05