The State is trying to reduce energy use and bills through the VEU initiative. It works by reducing the cost of energy items. Using energy-efficient equipment can save homes and businesses money. You do not need to prove your income. Anyone living in the State can join. This plan reduces costs at the time of purchase, not months later.
Since 2009, more than 2.4 million homes have been part of this program (Victorian Energy Upgrades). By 2027, the state aims to save 37 million tons of gas. This is equivalent to removing 11 million cars from the streets for a year. You can replace your old gas-powered heating or water equipment with new electric equipment and earn a profit. This plan will last until 2045, which gives you plenty of time to consider the needs of your home.
Who Can Apply
Anyone living in the state can participate. There is no test to determine how much money you earn. Help is available for both homes and businesses. You can only use companies approved by the state. These companies are included in the main list of the state. If you try to buy things yourself and then ask for money later, it will not work. Rented homes can also be included.
The owner and renter must agree to the initial claim. Either party can initiate the claim. The owner must agree to have new units installed in their homes. There are no strict laws regarding who pays the electricity bill, but generally the one who pays the bill makes the decision. Most owners like this idea because it increases the value of the home and reduces occupant expenses.
If you want to replace old heating or cooling devices, your home should be at least two years old. This rule ensures that the plan is for real renovations, not just new homes. This assistance is not available for new construction. If you have a large business with solar power units ranging from 30 to 200 kW in size, you can also qualify for assistance. This idea can help small businesses and large establishments save anywhere from $500 to $74,000 annually.
Hidden Cost Savings
Long-Term Power Bill Drops
Switching from a gas water heater to a heat pump can save you $330 a year. Switching from a gas room heater to a cool-heat device saves $370 a year. Every year, homes that switch from gas ducted heat to ducted cool-heat save $1,010. This money adds up quickly. A family that makes three swaps can save over $1,500 a year. Over ten years, this translates to over $15,000 in their bank account.
Lower Care Costs for Units
Power units are cheaper to repair than gas units. They have fewer parts that can wear out. With minimal maintenance, heat pump water units can last 10 to 15 years. Most cool-heat units only need to be inspected once a year. You will not have to pay for as many repairs during the five-year claim period. This keeps costs down and gives you peace of mind.
Home Value Growth
Homes with power units sell for more. Cheese buyers appreciate lower bills and green technology. A home with a good cool-heat unit and heat pump water can sell for $10,000 to $20,000 more. This makes the initial expense well worth it. If you ever sell your house, you will get your money back, or even more. Homes that use energy efficiently also rent faster and at higher prices. This is beneficial for those renting out their homes.
Green Power Gains
Solar panels work very well with power units. If you have solar panels on your roof, you can heat and cool your home using free sunlight. This significantly reduces your electricity bill. Some homes that have both solar panels and power units do not have much electricity costs. When you use more of your own generated electricity, you draw less from the grid. This saves money and keeps the ground clean.
Approved Product Limits
Every unit must be on the Main List of the state. This list includes all the brand names and model codes that are in use. If your unit is not on this list, you will not be able to get any money. Even if it looks good or saves energy, it is still of no use. Always check the list first. Your company can help you understand this list. This list is available online and new items are added to it every month. If a unit does not follow the new rules, it is removed from the list.
Each unit must be accompanied by a claim that is at least five years old. This rule came into effect on March 31, 2025. This rule applies to all space cool and water heat equipment. If a unit is less than five years old, it will not be included in the list. This ensures that the items you purchase will last a long time. The claim must cover the engine, not just normal wear and tear. Read your claim carefully to see what is included.
Only a limited number of items in a home can be claimed at a time. Over time, up to five exchanges can be made for heating, water, lights, and other items. Each exchange costs a separate fee. If you want to replace more than one gas room heater in a single home, each must meet the full rules. You can only install as many new units as you remove. The State does not want to add new items, but rather wants one exchange for another.
Installer Choice Rules
- You Must Use An Okay Firm: Only companies listed by the state can do this. They know the rules and how to fill out the forms. They handle all the paperwork for you. If you hire an ordinary trade but want money, that trade will have to work with a reputable and approved company to file the paperwork.
- Check Their Card: Every reputable company will show you their card, which has their name and code. This card should also have the main trade number. If they do not show this card, do not let them start the work. Fake companies exist, so always check. For extra caution, you can also search their code on the state website.
- Ask For Price First: Ask for the full price before starting the work. Get a clear quote that lists the full expenses and the final amount after deducting the money. The quote should list the price of both the goods and the work separately. Make sure you understand how much you have to pay after the money is deducted. Some companies also charge extra fees, so be careful. If the price seems too low or they say “free,” be cautious.
- Read All The Terms Carefully: This means you should read the contract before signing. It should state which unit will be provided, when the work will be done, and what the claim covers. It is important to understand your rights. If the company does not provide you with a document outlining your rights, ask for it. By law, they are required to provide it before work begins.
Paperwork You Sign
| Form Name | What It Does | When You Sign It |
| Quote Form | Lists price, unit type, and your share to pay | Before work starts |
| Rights Sheet | Tells you your legal rights under the plan | Before deal is made |
| Deal Paper | Legal pact for work to be done right from the start | Before work starts |
| Work Done Cert | Proof that unit was put in right and safe | After work ends |
| Claim Paper | Shows the funds were sent to you or the firm | After work ends |
Upgrade Timing Windows
Generally, exchange transactions take two to four weeks from initial presentation to completion (Energy Educators). The first week is for the company to inspect your home and provide you with an estimate. They need to see where the old unit is installed and where the new unit will be installed. They may take notes or take pictures. This helps them understand which parts will be needed. If you agree with the quote, they order the new unit. This can typically take three to seven days.
The second week is for work. Most water unit or room heating work is done in a day. If the house is rainy, duct units can take two days. The company removes the old unit and installs the new one. Then they check that everything is working properly. You are given a paper stating that the work is safe. After this, they send forms to the state so that you can get your money back. If you paid the full amount upfront, you get your money back within four to four weeks. If the company has already given a lower price, then the state makes the payment directly to the company.
Rental Home Access
- Owners Must Agree: If you rent, the consent of the owner is essential. So, talk to your landlord first. Most owners like this idea because it reduces the value of their home. New units also reduce your bills. Get their permission in writing or via email so you have a record. Some lease agreements state that you cannot make arbitrary changes. So, be sure to check your lease first.
- Bills In Your Name Help: If the electricity bills are in your name, the process becomes easier. The company may ask you to see the bills to prove you live there. These bills should not be more than three months old. If the bills are in the name of the owner, they may be able to sign some papers. Help them make the process go smoothly.
- Who Pays What: It is important to decide who will pay what. Usually, the owner pays the unit expenses, which reduces your bills. Sometimes the fee is divided between the owner and the renter. There is no clear law about this. Both parties must agree before the work begins. Make a written note of who will pay what so there is no confusion later.
- Keep Proof Of All Talks: Keep proof of all conversations with the owner. Keeping a record of messages, emails, and calls is beneficial. If you ever have questions about who said what, you have proof. This also helps with future swaps. Some owners are even willing to do more work after the first switch is done properly.
Post-Install Checks
First Week After Work
During the first week, thoroughly test your new device to make sure it is working properly. Turn it on and off a few times. When you need cool air, make sure it is blowing out. And when you need heat, make sure it is blowing out. If the device makes strange noises or does not work properly, call the foreign company. They have to fix all issues free of charge under the claim. Do not hesitate to report the issue. The sooner they find out, the sooner they can fix it.
Monthly Use Watch
Check your electricity bills every month. You should see a lower amount than before. It may take two to three months to see full savings because bills take time to update. If bills remain the same or go off, call the company. There may be a setup issue. Make sure your unit is in the correct mode. Many people leave their units on the wrong mode, which wastes electricity.
Yearly Care Visits
Make sure to schedule a maintenance appointment once a year. This will keep your unit in good condition. The caregiver will clean up and check that everything is okay. A small expense now can save a lot of trouble later. Most care plans of companies cost between $100 and $150 a year. This is valuable because it keeps your claim valid. Some claims may not be covered if care is not taken.
Common Claim Mistakes
Many people choose units that are not on the list of the state. They think any good unit will do, but the state is very strict about this. If the unit is not on the list, you will not get any money (Energy Educators). Always make sure the model code and brand name match exactly. If even one digit is wrong, it is a fake unit. Your company should confirm this, but you can also check it yourself on the website of the state. This small thing can save you a lot of trouble later.
Some people forget to bring all their forms. The state needs proof that the work has been completed and the old unit has been properly removed. If you do not have these forms, your claim may be delayed or even rejected. Keep all the forms in one place in a file. This may include your quote, transactions, work certificate, and pictures of you taking the old unit. If the state urgently asks for information, you can send it abroad. If there is a delay, you may have to wait weeks or months for your money.
It is not advisable to receive money from two state plans at the same time. You can not use both this plan and the Solar Homes plan for the same unit. Only one state fund is available for each unit. You can combine this plan with plans from other states, but not with two plans from the same state. If you are unsure, ask your company. They know which plans are compatible and which are not. At Astra Green Solutions, we are here to help you every step of the way. We make sure you get the right units, documents, and money.
