Victorian Energy Upgrades (VEU) Program
Previously known as the Victorian Energy Efficiency Target (VEET) scheme, the Victorian Energy Upgrades (VEU) program is administered & regulated under the VEET Act 2007 by the Essential Services Commission (ESC).
The Australian Government is committed to reducing its carbon footprint by almost 65% by 2030. The nation’s 2030 target is a commendable, credible and responsible contribution toward lowering greenhouse gases (GHGs) emissions & resulting climate change with consistent growth in economy and job opportunities.
To help achieve the target, the Victorian government is promoting energy-saving upgrades by providing financial incentives/discounts under the Victorian Energy Upgrades Program (VEU) to make the switch more affordable, efficient and economically attractive. The free/discounted energy-saving lighting product upgrade under the VEU program can help Victorian households/businesses save money on upgrade costs, save up to 80% on lighting costs and help the environment.
By switching over to energy-efficient LED lights under the Victorian Energy Upgrades program, a victorian household or business can expect $191* annual energy cost savings, 1065 kg of less CO2 annually (Reduction in greenhouse gas emissions) and $9274 savings over an average life of the LED light fixture.
* based on 10 standard GU10 halogen 50W lights, @ $0.23 cents/ kWh charge for 5 hours per day, 7 days per week for 52 weeks.
Victorian Energy Efficiency Certificates (VEECs) can be created by an Accredited Person (AP) and sold to Energy Retailers when a legitimate activity takes place. The Energy Retailers are bound to purchase a certain number of Victorian Energy Efficiency Certificates (VEECs) every year under the victorian energy incentive scheme, and this, in turn, helps the households and businesses in cutting their electricity bills.
The number of certificates generated depends on the amount of greenhouse gas abatement associated with the approved product or service. Incentive or discount received by households and businesses for LED lighting upgrades varies as per the market activity and certificate price.
What is the Victorian Energy Upgrades (VEU) Program?
Scheme name: Victorian Energy Upgrades (VEU) program, formerly the Victorian Energy Efficiency Target (VEET) scheme. The scheme was renamed on August 01, 2017.
Policy framework responsibility: Victorian Government Department of Environment, Land, Water and Planning (DELWP)
Ministerial responsibility: VIC Minister for Energy, Environment and Climate Change
Scheme administrator: Essential Services Commission (ESC)
Scheme regulator: Essential Services Commission (ESC)
Certificates: Victorian Energy Efficiency Certificates (VEECs)
Start date: January 01, 2009 / End date: January 01, 2030
VEU Program at a Glance
Victorian Energy Upgrades (VEU) is an energy-saving initiative by the Victorian Government to help businesses (small and big) and households cut power bills and reduce greenhouse gas emissions. It is made possible by providing access to discounted energy-saving lighting products and services like Halogen/CFL light globe replacement.
The VEU scheme is administered under the Victorian Energy Efficiency Target Act 2007. The purpose of this Act is to promote the reduction of greenhouse gas emissions by establishing the VEET scheme (was commenced on January 1, 2009), which:
- Provides for the creation and acquisition of energy efficiency certificates
- Requires the surrender of energy efficiency certificates
The VEU scheme is designed to make energy efficiency upgrades more affordable, contribute to the reduction of greenhouse gases, and encourage investment, employment, and innovation in industries that supply energy efficiency products and services.
VEU Program Targets:
The 2007 Victorian Energy Efficiency Target Act mandates that annual emissions reduction goals be set in the 2018 VEET Regulations for the periods 2021 to 2025 by May 2020.
|2009 to 2011||2.7 million tonnes per year, set in VEET Act|
|2012 to 2014||5.4 million tonnes per year, set in VEET Regulations|
|2015||5.4 million tonnes per year, set by Minister|
|2016 to 2020||5.4 to 6.5 million tonnes per year, set in VEET Act|
|2021 to 2025||To be set in VEET Regulations|
|2026 to 2030||To be set in VEET Regulations|
Less Heat, Better Light, More Savings
Figures show replacing incandescent bulbs, CFLs and halogen downlights with energy-efficient LED lights can save small to medium size businesses over 75% on energy costs. For bigger commercial setups, the savings can be in thousands.
Because LED lights:
- Require less maintenance
- Generate a tiny amount of heat, reducing air conditioning costs during summers
- Improve light quality
Products must be professionally installed by the installer/service provider.
We offer free/discounted LED light replacement services under Victorian Energy Upgrades (VEU) program to help Victorian households and businesses reduce their energy bills by over 75%.
How Does Victorian Energy Upgrades Work?
Victorian Energy Upgrades is an energy efficiency incentive program powered by the Victorian government that provides Victorian households and businesses the opportunity to upgrade from conventional to energy-saving lighting products for no or minimum cost.
Every energy-efficient appliance or lighting upgrade allows Accredited Providers to generate Victorian Energy Efficiency Certificates (VEECs). APs then sell these certificates to energy retailers.
Each certificate represents a tonne of greenhouse gas abated.
Australian households produce a significant amount of greenhouse gases, mostly from transportation, heating and refrigeration, lighting appliances and waste (in landfills). However, most families can lower their greenhouse gas emissions and slash their energy costs by upgrading to energy-efficient appliance & utilising solar power.
The Victorian government sets annual greenhouse gas reduction targets that require energy retailers to buy a certain number of certificates.
VEECs can be created in two ways:
- By activities as prescribed in the current VEU Regulations. They use a simplified approach whereby the GHG reduction (and the number of VEECs) for each activity is measured by the standard method included in the Regulations.
- Through project-based activities (PBAs), which are possible under the 2017 separate Victorian Energy Efficiency Target (Project-Based Activities regulations). PBAs are customized discrete activities that improve energy efficiency at premises for which VEECs can be created by calculating GHG abatements through actual energy savings.
In 2019, VEU aims to help reduce Victoria’s greenhouse gas emissions by 6.3 million tonnes through energy efficiency.
Victorian Energy-Efficient Appliances Rebate
Rebates are provided by the Accredited Providers (APs) registered with the Victorian state government under the VEU program. Victorians are the 2nd largest energy consumers in Australia. Air conditioners, freezers, water heaters, and lights are the most energy-hungry appliances. Choosing the most energy-efficient appliance can save you a lot of money and energy over many years.
Energy rating labels provide consumers with information regarding a product’s energy efficiency. The more stars the appliance has on its Energy Rating label, the more energy-efficient it is. Efficient appliances use less electricity to achieve the same level of performance in similar models of the same capacity or size.
Can I Apply?
Everyone who lives in Victoria using old lights can apply to get them replaced with approved energy-saving products and services through an Accredited Provider and their representative.
Who are Eligible Households & Businesses Under VEU/VEET Scheme
If you live in Victoria and use (old) incandescent, CFL and/or halogen bulbs, downlights, high bays at your home/business, you are definitely eligible for the upgrade. However, we require a minimum number of lights to be upgraded to qualify.
Switching to LEDs will help you reduce your energy consumption. This means you can expect to see long-term cost savings on your bills. For example, if you replace 20 halogen downlights with LED highbay or downlight, you can save over $200 a year on energy bills.
Other benefits include reduced maintenance cost because LEDs last over a decade.
How to Plan Energy Efficient Lighting Upgrade?
First, we do a free assessment of the business premises and prepare a detailed proposal. This is followed by a visit by an A-grade electrician who installs the new lights. We decommission old lights or any other equipment removed or replaced during the upgrade process. This is to ensure that old, inefficient lights are not used anywhere else.
Whether you are upgrading from old to new or starting afresh, take some time to plan lighting that is energy efficient and works for you. When planning your lighting, do consider:
- The look, function, and purpose of the space
- How you want to illuminate objects and features
- Suitability of the energy-efficient lighting products you choose
- How to maximize the use of natural light
LEDs are far more energy-efficient than halogen and CFL lights. Halogen lights are available in 12V and higher voltages, but low voltage doesn’t necessarily mean low energy use.
The table below shows the light output of 12V halogen downlights against 12V LED lights.
|Light Output (Lumens)||12V Halogen||12V LED|
LEDs are the Most Efficient Form of Lighting
LEDs use much less energy to provide the same or higher amount of light than conventional lighting products. One of the main reasons LEDs are so efficient is that most of their energy is used to create light, rather than creating light and heat.
Cost of running light is related to the wattage of the light bulb
The higher the wattage, the higher the running cost. Reduce your power bills by replacing halogen lights with LEDs throughout your home, office or warehouse.
Turn lights off when not in use
The longer your lights are left on, the higher the running cost. Switch lights off when not in use to keep your lighting energy costs down.
Use natural light wherever possible
The size and location of windows affect the amount of sunlight entering your premises significantly. Windows facing East and West tend to draw maximum sunlight in, while south-facing windows receive virtually no direct sunlight. Additionally, keep curtains open during the daytime so that the maximum amount of natural light comes in. This reduces lighting costs to zero during the daytime.