Hot summers, rising power bills and an old, noisy air conditioner that barely keeps up?
For many Victorian households, that’s the reality.

The good news: the Victorian Energy Upgrades (VEU) program can make upgrading to a modern, energy-efficient air conditioner much more affordable. With the right system, you can cut your running costs and unlock generous rebates through accredited VEU providers.

But there’s a catch—not every air con unit qualifies.

In this guide, Melbourne Aircon Specialist breaks down which systems are typically eligible, how to check if a particular model is on the approved list, and what to consider when choosing a new unit for your home in Melbourne and surrounding suburbs such as Craigieburn, Epping, Glen Waverley, Werribee, Melton, Dandenong, Frankston and beyond.

---

In This Blog

• Understanding the VEU Rebate: What It Is and How It Works
• Key Benefits of Switching to an Energy-Efficient Electric Air Conditioner
• Types of Air Conditioning Systems: Split, Multi-Split & Ducted
• Is Your Unit VEU-Approved? 5 Simple Checks
• Air Conditioner Types Eligible for VEU Rebates (with Tables)
• How to Choose the Right System for Your Home
• How Melbourne Aircon Specialist Can Help

---

Understanding the VEU Rebate: What It Is and How It Works

The Victorian Energy Upgrades (VEU) program is a state government initiative aimed at helping households and businesses:

• Reduce energy bills
• Cut greenhouse gas emissions
• Move away from less efficient gas or electric resistance heating

Under the program, eligible Victorians can receive rebates or discounts when they install approved energy-efficient products such as:

• Reverse-cycle air conditioners
• Heat pump hot water systems
• Efficient lighting and other upgrades

The rebate is typically claimed and applied through accredited VEU providers. As a customer, you usually see the benefit as a discount on the supply and installation price rather than receiving cash later.

At Melbourne Aircon Specialist, we:

• Design and install high-efficiency air conditioning systems; and
• Work closely with accredited VEU providers and partners who handle the formal rebate side of things.

That means you still get expert advice, a quality install and support with the rebate process—without needing to navigate all the paperwork alone.

---

Why Switch to an Energy-Efficient Electric Air Conditioner?

Upgrading your heating and cooling system can transform your home in Melbourne’s varied climate—from scorching summers to chilly winters. Here are some of the biggest advantages:

1. Cleaner, Healthier Indoor Air

Modern reverse-cycle systems often include:

• Advanced filtration
• Dust and allergen reduction
• Better humidity control

This helps improve air quality—especially useful for families in suburbs close to busy roads or industrial areas such as Dandenong, Laverton or Sunshine.

2. Higher Property Appeal

Energy-efficient, reverse-cycle systems:

• Improve comfort
• Look neat and modern
• Appeal to renters and buyers who value lower running costs and sustainability

If you own an investment property in Melton, Point Cook, Tarneit or Cranbourne, an efficient air con system can be a strong selling or leasing point.

3. Reliable, Quiet Performance

Newer systems use inverter technology and improved components, which means:

• Faster heating and cooling
• Quieter operation
• Better reliability and longer life (when installed and maintained properly)

4. Smart Control Options

Many eligible models support:

• Wi-Fi control
• App-based scheduling
• Integration with smart thermostats

You can manage your home’s comfort from your phone—perfect if you’re commuting between Melbourne CBD and outer suburbs and want the house comfortable when you arrive.

5. Lower Maintenance Over Time

High-quality systems, correctly sized and installed, usually:

• Experience less strain
• Require fewer major repairs
• Offer strong manufacturer warranties

This can mean lower maintenance costs over the life of the system.

6. Future-Proof Investment

Moving to an efficient reverse-cycle system:

• Aligns with future energy standards
• Supports the transition away from gas
• Positions your home for future technologies like solar + battery integration

---

Types of Air Conditioning Systems Under the VEU Scheme

Across Melbourne and regional Victoria, most homes considering the VEU rebate will look at one of three main system types:

1. Single Split System
2. Multi-Split System
3. Ducted Reverse-Cycle System

Here’s a quick comparison:

System Type	Description	Best Suited For	Typical VEU Category*
Single Split System	1 outdoor + 1 indoor unit	Single room or open-plan area (e.g. lounge, bedroom)	Non-ducted reverse-cycle high-efficiency unit
Multi-Split System	1 outdoor + multiple indoor heads	Multiple rooms/zones in small–medium homes	Multi-split reverse-cycle high-efficiency system
Ducted Reverse-Cycle	Central indoor unit + outdoor + ducts to many outlets	Whole-home heating & cooling	Ducted reverse-cycle high-efficiency system

*Exact eligibility depends on the specific Activity 6 category, product registration and other VEU rules at the time of installation.

---

Single Split Systems

A single split system (often called a “wall split”) pairs one outdoor unit with one indoor unit. It’s ideal if you need to:

• Heat or cool a living room, bedroom, home office or small open-plan space
• Upgrade from an old wall furnace or electric resistance heater in one main area

Under the VEU program, many split systems qualify for rebates when:

• They meet the required energy efficiency thresholds
• They are listed on the VEU Register of Products
• Installation is done through an accredited provider

They’re often the most affordable entry point into VEU-supported upgrades.

---

Multi-Split Systems

A multi-split system lets you run several indoor units (heads) off one outdoor unit. This gives you:

• Independent temperature control in different rooms
• Cleaner walls (fewer outdoor units)
• Better energy management for multi-room homes

The VEU program clearly recognises “multi-split reverse-cycle air conditioners” under Activity 6 – high-efficiency air conditioners.

Multi-splits are a popular choice for family homes in suburbs such as:

• Craigieburn, Epping, Thomastown and Reservoir (older homes being upgraded)
• Tarneit, Truganina, Clyde North and Mickleham (newer estates needing zoned comfort)

---

Ducted Reverse-Cycle Systems

Ducted reverse-cycle systems deliver conditioned air via ceiling or floor ducts to multiple rooms. They’re ideal when you want:

• Whole-home heating and cooling
• A clean look with minimal visible indoor units
• Zoning options for day and night areas

Under VEU, certain ducted reverse-cycle upgrades attract higher rebates, particularly when replacing gas or electric ducted systems. They do involve higher upfront cost and more complex installation—but the comfort and potential rebate benefits can be significant when designed properly.

---

Is Your Unit VEU-Approved? 5 Simple Checks

Found a great-looking unit? Before you commit, you or your installer should confirm that it’s actually eligible. Here’s a simple step-by-step approach:

1. Look Up the VEU Register of Products

Go to the Essential Services Commission (ESC) website and search the Register of Products for:

• Activity 6 – Space heating and cooling – high efficiency air conditioner

Check that:

• The exact brand and model number appear on the register
• The product category matches (ducted vs non-ducted, capacity, etc.)
• The status is current, not expired or deregistered

2. Check Efficiency and Other Specs

Once you find the model:

• Confirm it meets or exceeds efficiency thresholds (EER, COP, etc.) for its size
• Compare its performance to other options—higher efficiency usually means better long-term savings

3. Confirm Accredited Provider & Compliant Installer

For the rebate to apply:

• The job must be arranged through a VEU-accredited provider
• Installation must meet all electrical, refrigeration and building standards

Melbourne Aircon Specialist works alongside accredited providers and licensed installers so your upgrade is both compliant and rebate-ready.

4. Check Property Eligibility

Typical conditions include:

• The property is in Victoria and usually more than 2 years old
• A qualifying existing system (e.g. gas heater, electric resistance heater, older ducted system) is properly decommissioned if required
• Rental properties can qualify, but usually need landlord approval

5. Keep All Documentation

You should receive documentation such as:

• Proof that the product is VEU-listed
• Evidence that the installer and provider are appropriately accredited/licensed
• Compliance certificates and installation details

Hold onto these documents in case of any future audit or if you sell the property.

---

Air Conditioners Eligible for VEU Rebates: Examples & Tables

Important: Rebate values and eligibility change over time. The figures below are indicative only and can vary based on VEEC prices, policy changes, site specifics and the accredited provider’s pricing structure. Always confirm current values before proceeding.

1. Ducted Reverse-Cycle Air Conditioner – Example Rebate Ranges

Existing System (Decommissioned)	Upgrade System Size	Indicative Rebate Amount*
Central electric resistance ducted heater	10 kW – 22.4 kW	Up to $5,460
Ducted gas heater	10 kW	Up to $2,520
	16 kW	Up to $4,200
	22.4 kW	Up to $5,530
Ducted reverse-cycle air conditioner (old/inefficient)	10 kW	Up to $490
	16 kW	Up to $770
	22.4 kW	Up to $910
No decommissioned product	10 kW – 22.4 kW	Up to $410

*Final customer benefit depends on VEEC value, site details, installer pricing and provider policies.

---

2. Non-Ducted & Multi-Split Reverse-Cycle Air Conditioners – Example Rebate Ranges

Installed / Existing System	Upgrade System Type & Size	Indicative Rebate Amount*
Hard-wired electric resistance room heater	Non-ducted reverse-cycle 3 kW – 9 kW	Up to $840
Ducted (whole-house) gas heater	4 split systems (1 × 8 kW + 3 × 3 kW)	Up to $2,520
Ducted gas heater	Multi-split (e.g. 1 × 10 kW outdoor with heads)	Up to $2,940
Non-ducted (room) gas heater	Non-ducted reverse-cycle 3 kW – 9 kW	Approx. $630–$1,610
Non-ducted reverse-cycle air conditioner (old upgrade)	New 3 kW – 9 kW unit	Around $210
No decommissioned product	3 kW – 9 kW non-ducted reverse-cycle	Approx. $70–$140

Again, exact amounts vary, but this gives a sense of how different upgrade paths might compare.

---

3. Minimum Customer Contribution – Example

The VEU program requires customers to contribute a minimum amount towards the installation. For many air conditioning upgrades, the indicative minimums look like this:

System Type	Capacity / Description	Minimum Customer Contribution*
Non-ducted reverse-cycle (e.g. wall splits)	< 10 kW	At least $200
Multi-split or ducted reverse-cycle systems	Larger / whole-home upgrades	At least $1,000

*These are indicative only; always confirm current requirements with the accredited provider.

---

VEU-Approved Air Conditioner Brands & Models (Examples)

Many well-known brands have models listed under the VEU program, including:

• Daikin
• Mitsubishi Electric / Mitsubishi Heavy Industries
• Panasonic
• Fujitsu
• Midea
• SmartLifestyle and others

Eligibility is always based on the exact model, not just the brand name. For example, some models often seen on past efficient lists include:

• Mitsubishi Heavy Industries SCM100ZS-W (approx. 10 kW multi-split)
• Panasonic CU-5Z100VBR (multi-split)
• Daikin 5MXM100R2VMA (multi-split, high efficiency in certain configurations)
• Panasonic U-100PZH3R5 (ducted system listed with strong EER in some guides)

Because the register is updated regularly, always double-check the current VEU product list before purchasing.

---

How to Choose the Right Air Conditioning System – Expert Tips

Choosing a system that suits both your home and the VEU rules doesn’t have to be confusing. Here are some practical tips from Melbourne Aircon Specialist.

1. Start with Your Home and Comfort Needs

Ask yourself:

• How many rooms do I need to heat/cool—just the living area in Glenroy, or the whole house in Werribee?
• Do I want separate temperature control for bedrooms and living areas?
• Am I upgrading from gas ducted heating or from old electric wall heaters?

General guide:

• One main room → Single split
• Several key rooms (e.g. living + bedrooms) → Multi-split
• Whole-home comfort → Ducted reverse-cycle with zoning

2. Look Carefully at Efficiency Ratings & Brand Support

• Aim for systems with strong EER and COP values; higher usually equals better performance.
• Choose brands with a good service network in Melbourne and wider Victoria.
• Make sure warranties meet or exceed VEU requirements (often 5-year compressor and parts on many systems).

3. Confirm VEU Eligibility & Installation Compliance

Before signing anything:

• Confirm the exact model number is on the VEU Register.
• Ensure your installer works with an accredited VEU provider and understands decommissioning rules.
• Ask how the rebate will be applied on your quote (e.g. already discounted in the final price).

4. Think Long-Term Running Costs

Don’t just pick the cheapest eligible unit.

A slightly more expensive, higher-efficiency model can:

• Save hundreds of dollars a year on power
• Offer better comfort in extreme Melbourne weather
• Pay itself back faster over time

Consider features like:

• Inverter technology
• Wi-Fi control and zoning
• Quiet operation, especially for bedrooms

5. Be Aware of Rebate Rules & Timing

• Rebate amounts can change with VEEC prices and policy updates.
• The product must be listed at the time VEECs are created.
• Certain paperwork and installation timeframes apply.

That’s why working with an experienced installer who understands the process—and partners with accredited providers—is so important.

---

Upgrade with Melbourne Aircon Specialist

If you’re in Melbourne or nearby suburbs and are thinking about upgrading your air conditioning system under the VEU program, Melbourne Aircon Specialist is here to help.

• We design and install high-efficiency reverse-cycle, multi-split and ducted systems.
• We work closely with accredited VEU providers who manage the rebate creation and compliance side.
• You get a tailored solution that suits your home, budget and comfort needs—without needing to decode VEU documents yourself.

👉 Ready to explore your options?
Contact Melbourne Aircon Specialist today for a free, no-obligation quote and guidance on which air conditioning systems may qualify for VEU rebates in your area.

📞 1300 001 690
📧 info@melbourneairconspecialist.com.au

Stay cool, cut your bills, and make the most of Victoria’s energy upgrade incentives—one efficient air conditioner at a time.