Upcoming VEECs Increase! What It Means for Your Business

The Victorian Energy Efficiency Certificate (VEEC) scheme is undergoing a significant update that will impact businesses investing in energy-efficient heating solutions. Starting February 2025, the value of VEECs will increase by approximately 20%, creating a stronger financial incentive for businesses to transition to high-efficiency heat pump systems.

From 1 February 2025, an updated electricity emissions factor (EEF) will come into effect to reflect a decline in emissions intensity due to increased renewable energy generation. This adjustment will affect the number of VEECs assigned to various energy-saving activities, leading to higher rebates for eligible projects.

For example, the Revere1CHP-80-1T1000-S-2C, which previously received 201 VEECs, will now receive 244 VEECs, a 20% increase*. While the exact changes will vary between products, this shift means greater financial returns for businesses upgrading their heating systems.?

(* The number of VEECs awarded also varies based on the system being replaced.)

Updated electricity emissions Factor from 1 February 2025

From 1 February 2025, changes to the EEF will come into effect to reflect a decline in the emissions intensity of electricity due to increased renewable energy generation.

The change reduces the EEF to 0.393 (t CO2-e/MWh). Deemed VEU activities may see a change in incentive depending on:

1. the fuel source used in the baseline and upgrade activity, for example, electric to electric, electric to gas
2. technical assumptions that underpin the activity
3. the rounding of Victorian Energy Efficiency Certificates (VEECs).

For more details, visit the Victorian Energy Upgrades (VEU) program website:Victorian Energy Upgrades Latest News.

Three key programs provide financial incentives for upgrading heating and hot water systems:

• Victorian Energy Upgrades Scheme (VEU)
• New South Wales Energy Savings Scheme (ESS)
• New South Wales Peak Demand Reduction Scheme (PDRS)

Through these initiatives and by choosing one of our approved heat pump packages, businesses can receive rebates to:

• Replace electric resistance water heaters
• Replace gas boilers
• New heat pump installations

Automatic Heating is the only approved supplier with a commercial heat pump of its size for rebates in Vic and NSW.

Understanding Heat Pump Approved Packages

It’s important to note that rebates apply to specific heat pump approved packages, not just any standalone heat pump. These packages include pre-approved configurations that meet government rebate requirements, ensuring compliance and maximum financial benefit.

Why Consider Heat Pump Technology?

Switching to a high-efficiency CO? heat pump system offers key advantages like:?

• Higher Efficiency – A CO? heat pump produces an average of 3.9kW of heating energy per 1kW of electricity, making it nearly four times more efficient than traditional systems.
• Lower Carbon Emissions – The technology leverages natural CO? refrigerant and an advanced heat extraction process to minimise emissions.?
• Enhanced Safety – Unlike gas boilers, CO? heat pumps eliminate on-site combustion, reducing fire risks and improving workplace safety.

How to Calculate Your Rebate

Want to see how much your business can save? We’ve developed a list of resources including links to easy-to-use calculators for both Victorian Energy Upgrades (VEU) and NSW Energy Security Safeguard programs.?

Explore Rebate Calculators & Resources?

These tools allow businesses to estimate rebate values and determine potential cost savings when upgrading to energy-efficient systems.

Leading the Way in Sustainable Heating

At Automatic Heating, we are committed to providing businesses with high-performance, sustainable heating solutions that align with government energy efficiency programs. With nearly 100 years of industry leadership, we specialise in system design, engineering, and tailored solutions that maximise rebates and long-term savings.

Reach out to our team of experts to learn more about how these updates impact your business and explore the best heating solutions for your needs.

Join us in making the shift toward a more efficient, cost-effective, and sustainable future.