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What Is the Victorian Government Split System Rebate?

What Is the Victorian Government Split System Rebate?

If your energy bills are soaring, you need to take advantage of the Victorian Energy Upgrades program and the eco-friendly incentives offered by the Victorian government.

You could be eligible for FREE energy efficient systems subsidised under the program and installed by our experts at Ecosaver. One initiative that is saving Victorians energy and money is the Victorian Energy Upgrades split system rebate.

Read on as we explain what the Victorian Energy Upgrades split system rebate is and how you can enjoy the benefits.

What is the Victorian Energy Upgrades (VEU) split system rebate?

The Victorian Energy Upgrades (VEU) split system rebate is an incentive for households and businesses to adopt a reverse cycle split system air conditioner. 

When a reverse cycle split system air conditioner is installed, eligible households and businesses could receive a $1,000 rebate in return under the scheme. Depending on your eligibility, some other costs may also be covered when converting to split systems.

What is a reverse cycle air conditioner?

Reverse cycle air conditioners provide an alternative yet efficient heating and cooling system in your home or premises. An indoor unit and an outdoor unit are both used, with heat transferred between the two units using a refrigeration cycle.

What makes ducted reverse cycle air conditioners different from traditional air conditioners, however, is that this is a combined heating and cooling system. 

Typically, home heating may consist of a gas heater and a dedicated air conditioning unit. Running two separate systems with different energy use can lead to a surging energy bill, particularly when using a natural gas heater.


Image Source: Sydney Air Solutions

However reverse cycle air conditioners provide your home with both heat energy and cooling energy, ensuring your home feels like a comfortable temperature at all times whilst exuding energy efficiency.

What are the benefits of installing a reverse cycle air conditioner?

Successful installations of a reverse cycle conditioner provide the following benefits:

Environmental benefits

Using a reverse cycle conditioner as part of the cooling upgrades program will reduce the volume of greenhouse gas emissions that your household or premises release into the atmosphere.

You will lower your carbon footprint and help Victoria reach state targets for eco-friendly objectives by using renewable energy.

Financial benefits

Whilst the system outlay will require some initial costs, over time you will save money on your energy bills. You will no longer use expensive gas heating, whilst utilising one unit instead of multiple indoor units is an effortless option.

You could also be eligible for cooling rebate energy costs, such as the attractive $1,000 rebate after successful installations.

Comfort benefits

A reverse cycle conditioner will ensure maintaining comfortable indoor temperatures is a consistent possibility in your home or business. Whether the temperature rises or falls, your single unit will ensure that you feel comfortable at all times.

What is the Victorian Energy Upgrade (VEU) program?

The Victorian Energy Upgrades (VEU) program is a series of energy efficient incentives for eligible households and businesses located across Victoria. 

The aim of this program is to help Victorian residents to save energy and in turn lower their energy bills and make a positive impact on the environment.

Here are some of the VEU incentives that you could apply for in Victoria:

Heating and cooling

Installing a reverse cycle air conditioner in your home or premises can revolutionise how you heat and cool your home. Using these heating and cooling systems you will no longer need gas heating, saving you energy and money.

Some individuals may be able to gain some discounts on costs, although every eligible Victorian can enjoy a $1,000 rebate once installation is complete.

Commercial businesses could also apply for HVAC benefits, providing an enhanced heating, ventilation, and air conditioning system on your premises.

Another solution is to use a heat pump in your business, upgrading to an eco-friendly hot water pump and energy efficient system.


Image Source: Ecosaver

You will receive hot water 24/7 as heat is extracted from the air and transferred to the water using a condenser coil. Warm air compression heats the water, which is then circulated in the taps.


Upgrades could be available for households and businesses to gain a lighting upgrade, installing energy efficient LED lighting. You could reduce the cost of lighting your home or premises by up to 70% when upgrading to LED lights.

Water saving

Households in Victoria can save water and save energy to heat less water with a FREE water efficient shower head. 

Each time you shower, you will use less water once a water saving shower head has been installed. This is because air is mixed with the water to make the droplets bigger, requiring fewer water droplets during your showering experience.


Ensure there are no draughts in your home by installing a FREE door seal and a FREE exhaust fan seal, providing you meet the eligibility criteria.  

Draught-proofing your home prevents warm air from being lost through the gaps when you turn your home heating on. Therefore, you will use less energy as you will need to heat your home less. 

Likewise, draught-proofing also prevents hot air from coming into your home when you are using the cooling system, requiring less energy and saving you money.

Energy monitoring

You could be eligible for a FREE in-home energy monitor that tracks how much energy you use in the home and provides you with relevant financial data. 

Identifying the areas of your home that are using more energy can help you to make necessary changes to save energy and to save money.

Why choose Ecosaver?

Ecosaver is an accredited provider and an expert in energy efficiency. We can help you to understand which incentives you are eligible for and guide you through the necessary processes.

Take advantage of our FREE Quote & Audit now and start the ball rolling! Or, talk to an expert about how energy efficient products can help you to save energy and reduce energy bills.

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