Tag Archive for: Victoria battery incentives

Many Victorian homeowners search for a VEU rebate on solar batteries.

Then they find out the truth. The Victorian Energy Upgrades program does not fund home batteries directly. It covers many other energy-efficient upgrades instead.

So where does battery support actually come from? This guide explains what the VEU rebate covers, how the scheme works in 2026, and where battery buyers should look next.

What Is the VEU Rebate?

The VEU rebate comes from the Victorian Energy Upgrades program, regulated by the Essential Services Commission. It was once called the Victorian Energy Efficiency Target scheme.

Actually, the program started back in 2009. Since then, it has helped more than 2.4 million Victorian homes.

In 2025, the state passed a bill extending the program through to 2045. So installers and homeowners now have long-term certainty.

Here is how the funding works. Then energy retailers must buy and hand in credits each year.

Each credit is called a VEEC, short for a Victorian energy efficiency certificate. One VEEC equals one tonne of greenhouse gas saved.

So providers earn these credits by installing approved products. Then they turn that value into your upfront discount.

2026 and 2027 Targets

The government locked in new targets for the scheme. So the VEU rebate program now aims for 4.4 million certificates in 2026, rising to 4.6 million in 2027.

Also, regulators expect around 6 million certificates to actually be created each year. That builds a healthy surplus and keeps the market stable.

Once, retailers who fell short only faced a modest penalty. Now the shortfall rate has risen to $100 per certificate, which pushes retailers to keep buying.

How the Program Works Step by Step

The process stays simple on your end. First, you contact an accredited provider.

Next, they check your home and current system. Then your quote shows the discount already applied. You never claim anything after the fact.

From Credit to Discount

Your VEU rebate size depends on two things. One is the credit price, and the other is how much greenhouse gas your upgrade saves.

Also, prices move with the market. So the same upgrade can offer a different discount from month to month.

Credit Fees and Deadlines

Providers pay a fee for each credit they create. That fee rose from $2.33 to $4.35 from 1 January 2026, as part of a wider cost-recovery update.

Then there is also a strict deadline. So credits must be created within six months after the year ends.

So a 2025 upgrade needs its credit locked in by 30 June 2026. This same deadline covers late claims too.

Act early if you already installed an approved product but never claimed the discount.

Does the VEU Rebate Cover Home Batteries?

Not directly. Instead, the VEU program has no set activity for home battery installs, even in 2026.

That surprises many people. After all, batteries are one of the most searched clean-energy products in Victoria right now.

Victoria did run an interest-free loan scheme for home batteries through Solar Victoria, but that’s closed now. It hit its 4,500-loan target and stopped taking new applications in 2025.

Solar Victoria still offers rebates for solar panels and hot water systems, and the income cap for those drops from $210,000 to $150,000 from 1 July 2026. That cap doesn’t apply to battery support, though, since the battery loan itself no longer exists.

The Federal Cheaper Home Batteries Program

Instead, the federal Cheaper Home Batteries Program adds its own discount on top. That support runs through the Small-scale Renewable Energy Scheme, administered by the Clean Energy Regulator.

It funds around 30 percent off the upfront cost of eligible battery systems between 5kWh and 100kWh. No separate government application is needed. Your installer applies the discount directly.

This program has grown fast. In its first six months, more than 155,000 households and small businesses claimed the discount, with most installs happening outside inner-city areas.

So in December 2025, the government expanded its budget from $2.3 billion to $7.2 billion over four years. That’s expected to help over 2 million Australians install a battery by 2030.

Then, from 1 May 2026, the calculation method changed. The Small-scale Technology Certificate factor now tapers by battery size and steps down every six months through 2030.

Still, the government says the aim is to hold the discount at roughly 30 percent for most typical systems, while discouraging oversized batteries bought purely to chase a bigger rebate.

So if a provider advertises a “VEU battery rebate” for your home, ask one simple question: which scheme actually pays for it?

Often, it turns out to be a federal or state incentive, just marketed loosely under the VEU name.

What the Program Covers for Households

The scheme funds many approved products. Here are the most common home upgrades covered by the VEU rebate in 2026:

• Heat pump hot water systems, swapped in for old electric or gas units, generally earning 10 to 30 certificates per home
• Reverse-cycle air conditioning, replacing older heating and cooling
• Ceiling insulation, a brand-new 2026 activity — live now for public and community housing, opening to all Victorian homes from 1 October 2026
• Induction cooktops, recently extended to cover more eligible households
• Efficient shower roses and other water-saving fixtures

Renters can access most upgrades too. But some, like heating and cooling, need landlord sign-off first.

Always check your own eligibility with a provider before you commit to any single product, since exact certificate numbers vary by climate zone and the system being replaced.

Business Battery Storage and the VEU Rebate

Business battery projects access VEU rebate value differently. Instead, companies tap credit value through project-based activities.

So these use real measurement data, not a fixed formula. Since June 2025, the program added new measurement methods for larger sites.

So these better capture the value that business batteries deliver. As a result, they produce a stronger credit outcome than the older method did.

That single change makes battery projects easier to finance. So this especially helps sites doing heavy peak shaving.

The scheme also added a Commercial and Industrial Solar activity, which commenced on 29 September 2025. It covers systems between 30kW and 200kW, with the program guide and application forms released by late November 2025.

Pairing that solar activity with a battery lets a site make, store, and use its own power. So this cuts grid costs further over time.

The scheme has also revised its high efficiency motor activity and updated eligibility rules for several existing activities, so it’s worth checking current terms even for a project you assessed a year ago.

For help sizing these systems correctly, see our guide on C&I vs Utility-Scale BESS.

How to Claim Your VEU Rebate

Follow these steps to claim your VEU rebate with any accredited provider:

• Confirm your home and current system qualify for an approved activity
• Pick an approved product from the VEU register
• Get a quote with the discount already taken off
• Have a licensed provider complete the install
• Let the provider handle the credit paperwork

You never touch the credit process yourself. Instead, your provider manages that step from start to finish.

What’s Changing Next: The VEU Strategic Review

The program isn’t standing still. Regulators are running a wider strategic review of the whole VEU framework in 2026.

So the aim is to modernise the VEU rebate scheme and better support electrification as more households switch to efficient, electric appliances.

A bill to amend the underlying Act is planned for state Parliament later in 2026. Formal stakeholder engagement, including public webinars, ran through March and April 2026.

Instead of assuming today’s rules are fixed for years, treat this guide as a snapshot. Always confirm current activity terms with an accredited provider before signing a quote.

Comparing VEU Rebate and Other Battery Incentives

The table below compares the main schemes Victorian homes and businesses actually use.

Mixing up these schemes is common. Often, providers blend the language together in their marketing.

So knowing which body actually funds your discount helps you compare quotes fairly. It also guards you against a provider who overstates what the VEU rebate alone will cover.

Why the Mix-Up Happens So Often

Most Victorian energy schemes overlap in timing and paperwork. So it is easy to see why homeowners blur them together.

Often, one accredited VEU provider is also a Solar Victoria partner. That same firm might also process federal battery credits.

So one invoice can quietly bundle three discounts into a single number. Always ask for a clear, itemised breakdown before you sign anything.

Frequently Asked Questions

Further Reading

• C&I vs Utility-Scale BESS: Choosing the Right System
• Peak Shaving and Load Shifting at the Same Time
• Australia’s New Battery Rules 2026: What Changed