Victorian Energy Upgrades (VEU): How Electricians Earn $250–$1,650 Per Heat Pump Job in 2026
Victorian Energy Efficiency Certificate (VEEC): A tradeable certificate created under the Victorian Energy Upgrades (VEU) program when an accredited party completes an eligible energy efficiency upgrade. Each VEEC represents one tonne of greenhouse gas abatement. Certificates are traded on the open market and purchased by obligated retailers to meet their annual scheme targets.
Victorian electricians doing heat pump hot water installations, lighting upgrades, and gas-to-electric space heating replacements are sitting on a revenue stream most aren’t claiming. The Victorian Energy Upgrades (VEU) program — established under the Victorian Energy Efficiency Target Act 2007 (VEET Act) and administered by the Essential Services Commission (ESC) — lets accredited persons create Victorian Energy Efficiency Certificates (VEECs) after completing eligible upgrades. Those certificates are then sold on the open market.
The arithmetic is straightforward: a 315L heat pump hot water installation in a house with an old electric storage system can generate 20+ VEECs. At $35 per certificate, that’s $700 in additional revenue on a job you’re already doing — revenue that non-accredited competitors aren’t capturing. Multiply that across 30 eligible installs per year and you’re looking at $21,000+ in unclaimed certificate income.
This guide explains how the VEU program works for electricians — who can participate, what activities qualify, how to create certificates, and how VEU interacts with federal STCs on the same property.
What is a VEEC? A Victorian Energy Efficiency Certificate is a tradeable certificate representing one tonne of greenhouse gas abatement, created by an accredited person after completing an eligible activity under the VEET Regulations 2018. Certificates are sold to energy retailers to meet annual scheme targets — generating revenue on top of installation fees.
How the VEU Program Works
The VEU program creates a market-based mechanism for reducing energy consumption across Victoria. Established under the Victorian Energy Efficiency Target Act 2007, with eligible activities defined in the Victorian Energy Efficiency Target Regulations 2018, the scheme obligates electricity and gas retailers above certain supply thresholds to surrender VEECs each year to meet targets set by the ESC. They buy VEECs from scheme participants who have completed eligible activities.
The flow looks like this:
- An accredited scheme participant completes an eligible energy efficiency upgrade
- They create VEECs in the ESC registry, supported by evidence of the installation
- VEECs are sold (directly to retailers, via brokers, or through aggregators) at the prevailing spot price
- Retailers surrender VEECs to meet their annual obligation
For electricians, participation typically works one of two ways:
Option A — Become an accredited person yourself. You apply to the ESC, get approved for relevant activity types, and create and trade VEECs directly. Higher administrative overhead, but you capture 100% of the certificate value.
Option B — Work under an existing scheme participant. Many VEEC aggregators recruit electricians to deliver installations under their accreditation. The aggregator handles ESC compliance and certificate creation; you deliver the job and receive a fixed payment (or the customer receives a point-of-sale discount the aggregator finances). Lower admin, lower per-job return.
For a reasonably active electrical business doing 20+ eligible installs per month, Option A typically delivers better economics. For sole traders or businesses just testing the model, Option B is a lower-friction starting point.
Licence Requirements for VEU Participation
To become an accredited person under the VEU program, you need:
- A valid Victorian Electrical Contractor Licence (EC Licence) issued by Energy Safe Victoria (ESV)
- Active public liability insurance (minimum $5 million, typically $10–$20M for most trades)
- For heat pump hot water: ability to complete electrical, plumbing-adjacent, and refrigerant handling work, or subcontract appropriately
- Registration in the ESC’s online registry
Note: the VEU program has activity-specific accreditation. Being approved for heat pump hot water doesn’t automatically mean you’re approved for lighting upgrades — each activity category requires separate registration with the ESC.
Visit the ESC’s scheme participant portal at esc.vic.gov.au/victorian-energy-upgrades to access the current Activity Definitions, product eligibility lists, and registry access.
Eligible Activities in 2026
The VEU program covers a wide range of energy efficiency upgrades. The most commercially relevant for electricians in 2026 are:
1. Heat Pump Hot Water Systems
The highest-volume activity for most participating electricians. When replacing an existing electric storage or gas hot water system with an eligible heat pump unit, VEECs are calculated based on the energy savings the new system delivers over its rated life.
Key requirements:
- Product must be on the ESC’s approved product list (updated regularly — check before quoting)
- Must replace an existing system (new installations on properties with no prior hot water don’t qualify)
- Photographic evidence required: existing system, new installation, serial numbers
- Commissioning documentation required
VEEC quantity: Varies by product, climate zone, and existing system type. The ESC’s VEEC calculator gives the exact figure — typically 10–30 VEECs per residential installation.
2. Residential and Commercial Lighting Upgrades
Replacing existing inefficient lighting (halogen, T8 fluorescent, metal halide) with LED equivalents generates VEECs based on the energy reduction per luminaire per year.
Key requirements:
- Must be a replacement (not new installation)
- Products must meet minimum efficacy thresholds
- Commercial lighting upgrades require additional documentation (metered hours of use, floor area)
- Large-scale commercial lighting projects can generate significant VEEC volumes — 100-bay warehouse lighting upgrade can yield 500+ VEECs
3. Space Heating Replacements (Gas-to-Electric)
With the push toward electrification, replacing ducted gas heating with reverse-cycle electric heat pumps is an emerging activity. VEEC eligibility applies where an existing gas heating system is replaced with an eligible high-efficiency electric alternative.
Key requirements:
- Gas disconnection or decommissioning evidence required
- New system must meet efficiency rating minimums
- Activity is growing rapidly as gas prices increase and Victorian new-build gas bans take effect
4. Hot Water Pipe Insulation and Draught Sealing
Lower-value activities per job, but can be bundled with other upgrades to generate incremental VEECs at minimal additional cost. Often added to heat pump installations to increase certificate yield per site visit.
Step-by-Step VEEC Claim Process
Step 1: Activity Selection
Confirm the job qualifies. Check the relevant Activity Definition on the ESC website for the specific activity type. Verify the product is on the approved products list. Confirm the customer’s property type, existing system details, and location (VEU is Victoria-only — a property in NSW does not qualify).
Step 2: Customer Agreement
Obtain written consent from the customer to assign VEECs to you (or your scheme participant). This is a non-negotiable evidence requirement. Most aggregators provide standard assignment forms — if running your own accreditation, create one based on ESC guidance.
Step 3: Installation
Complete the installation to the relevant standard. For electrical work, all installations must comply with AS/NZS 3000:2018 (Wiring Rules) — specifically Clause 1.4 (fundamental safety principles), Clause 1.7 (testing and verification), and any applicable product-specific standard. For heat pump hot water, follow manufacturer specifications and state plumbing codes where applicable.
Step 4: Evidence Collection
Collect the required evidence before leaving the site — you cannot return to remedy missing documentation without putting the VEEC claim at risk:
- Photos of the old product being removed (including serial number or rating plate where visible)
- Photos of the new product installed (including serial number, rating plate, installation location)
- Commissioning documentation
- Signed customer assignment form
- Any required test results or compliance certificates
Step 5: Certificate Creation
Log into the ESC registry and create the VEEC claim. Enter site details, product details, and upload evidence. The registry calculates the number of VEECs based on the activity definition rules. For new scheme participants, the ESC reviews a portion of claims before releasing certificates — processing time is typically 10–20 business days.
Step 6: Certificate Trading
Once certificates are created and validated, they appear in your registry account. You can:
- Sell directly to retailers (requires establishing relationships — larger volumes needed)
- Sell via brokers (immediate liquidity, small brokerage fee, typically 3–8%)
- Sell via aggregators (if working under aggregator accreditation — price agreed upfront)
Certificate prices are market-driven. Monitor spot prices via industry sources or the ESC market data before committing to forward sales.
VEU and Solar STCs on the Same Property
This is where Victorian electricians often get confused — and where errors can create compliance problems.
The VEU program and the federal STC scheme are separate, parallel programs administered by different regulators:
| VEU | STCs | |
|---|---|---|
| Regulator | Essential Services Commission (ESC) | Clean Energy Regulator (CER) |
| Scope | Victoria only | National |
| Applies to | Energy efficiency upgrades | Renewable energy generation |
| Certificate type | VEEC | STC |
| Trading market | VEEC market | STC market (SWH/SGU) |
The key rule: VEECs and STCs are not mutually exclusive on the same property, but they may apply to different activities in the same visit.
Example scenario: A Victorian household has a 6.6kW solar system installed. The customer also wants to replace their old electric storage hot water with a heat pump unit in the same job.
- The solar system generates STCs under the federal Small-scale Renewable Energy Scheme (SRES), administered by the Clean Energy Regulator (CER)
- The heat pump hot water system generates VEECs under the VEU program, administered by the ESC
- Both sets of certificates can be created from the same site visit — they’re independent schemes for different activities
VIC-specific gotcha: Heat pump hot water systems can generate VEECs or STCs in some configurations — but not both for the same installation. STCs for heat pump hot water systems are created under the SRES’s solar water heater (SWH) category. If you assign STCs, you cannot also create VEECs for the same hot water installation. Choose the higher-value path before installation — run both calculations.
In 2026, VEECs for heat pump hot water are generally higher value per installation than SWH STCs for the same unit. Run the numbers for each specific job using the ESC VEEC calculator and the CER STC calculator before advising the customer.
How to Build VEU Into Your Business
Pricing VEU jobs correctly
The VEEC value should inform your customer pricing, not just your margin. Most scheme participants offer customers a point-of-sale discount equivalent to the VEEC value — making the installation cheaper for the customer while maintaining or improving your net margin. This is the standard commercial model for heat pump hot water under VEU.
Example:
- Heat pump hot water installation: $2,800 list price
- VEECs generated: 20 VEECs × $35 = $700
- Advertised customer price: $2,100 (after $700 VEEC discount)
- Your net: equivalent to the $2,800 job with the $700 VEEC pre-sold
This is a genuine competitive differentiator against non-accredited competitors quoting the same job at full price.
Documentation workflows
The biggest time cost in VEU participation is evidence management. Set up a consistent photo capture and documentation workflow for every eligible job — the same way you’d set up a CCEW or Certificate of Electrical Safety workflow. Using a job management platform like ServiceM8 lets technicians capture evidence photos directly against the job record on-site, with timestamp and geolocation data that satisfies most ESC evidence requirements. See our digital job management guide for solar installers for the broader compliance documentation workflow.
Volume requirements for direct accreditation
The ESC’s accreditation process requires ongoing compliance — including audits of a sample of your claims. The administrative overhead is relatively fixed, so direct accreditation makes more sense at higher job volumes. A rough guide: if you’re doing fewer than 5 eligible installations per month, aggregator participation is probably more efficient. Above 10–15 per month, direct accreditation typically delivers better economics.
Common VEU Compliance Mistakes to Avoid
| Mistake | Consequence | Fix |
|---|---|---|
| Installing a product not on the approved list | VEEC claim rejected; no certificate revenue | Check ESC approved product list before quoting every job |
| Missing pre-installation photos | Claim cannot be validated | Photograph old system before removing it |
| Customer assignment form not signed | Certificates cannot be legally created or traded | Obtain signed form before installation, not after |
| Claiming VEECs and STCs on the same HWS installation | Non-compliance; potential certificate cancellation | Choose one scheme before the install |
| Missing product serial numbers in evidence | Claim queried or rejected | Photograph rating plate with serial number clearly visible |
| VEU claim on a non-VIC property | Claim void | Confirm address postcode before quoting VEEC value |
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Related Reading
- Replacing Gas Hot Water with Electric Heat Pump — Electrician’s Guide
- Heat Pump Hot Water Installation for Electricians
- VIC Solar Homes Battery Rebate 2026
- STC Claim Process for Solar Installers
- Digital Job Management for Solar Installers
- CER Audit Preparation for Solar Installers
- Full ServiceM8 Review 2026: Is It Worth It?
- How to Get More Solar Leads in Australia (2026 Guide)
FAQ
What is the difference between a VEEC and an STC?
A Victorian Energy Efficiency Certificate (VEEC) is created under Victoria’s VEU program for energy efficiency upgrades (heat pump hot water, lighting, heating). A Small-scale Technology Certificate (STC) is created under the federal Small-scale Renewable Energy Scheme for renewable energy installations (solar PV, solar water heaters). Different regulators, different markets, different activities — but potentially claimable from the same site if different activities are involved.
How long does ESC accreditation take?
The ESC typically processes new scheme participant applications within 20–40 business days. Complex applications or those with missing information take longer. Build this into your planning timeline — start the application before you need to create your first VEECs.
Can I create VEECs for jobs already completed before accreditation?
No. VEECs can only be created for installations completed after your accreditation is active and you have a valid customer assignment agreement. There is no retrospective VEEC creation for pre-accreditation work.
Do I need separate accreditation for each activity type?
Yes. VEU accreditation is activity-specific. Approval for heat pump hot water installations does not extend to lighting upgrades or space heating replacements. Apply for each activity type you intend to undertake, and ensure you understand the relevant Activity Definition for each.
Is VEU only for residential properties?
No — VEU covers both residential and commercial activities. Commercial lighting upgrades and commercial heat pump installations can generate VEECs. Commercial activities often carry more stringent evidence requirements and larger certificate volumes.
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