WHAT IS VICTORIAN ENERGY UPGRADES?
The Victorian Energy Upgrades program is helping Victorians households and business owners cut energy bills and greenhouse gas emissions by giving them access to subsidised energy-efficient products and services.
The Victorian Energy Upgrades program (previously known as the VEET scheme) is administered in accordance with the Victorian Energy Efficiency Target Act 2007 which commenced on January 1, 2009, the Victorian Energy Efficiency Target Regulations 2008 and the Victorian Energy Efficiency Target Regulations 2017.
With effectiveness of the program, the energy retailer companies are liable to meet an annual greenhouse gas emissions reduction target by surrendering a certain amount of Victorian Energy Efficiency Certificates (VEECs).
Accredited Providers (APs) authorized under the VEU program generate VEECs for an energy upgrade. The number of certificates generated is based on the amount of greenhouse gas abated through energy upgrades. The level of incentive or discount received under the scheme vary for households and businesses.
The program is administered by the Essential Services Commission (ESC), which is the independent regulator of the retail energy industry in Victoria.
WHAT DOES IT DO?
VEU is the largest energy efficiency program in Australia. It’s active for last one decade (2009) and has helped over 1.7 million households and 70,000 businesses cut their energy costs since then.
Households and businesses that accessed the program in 2017 saved more than $400 million off their energy bills. In terms of greenhouse gas emissions saved, this is equivalent of taking 500,000 cars off the road.
According to Minister for Energy, Environment and Climate Change, Lily D’Ambrosio:
“This is good policy in action – saving businesses hundreds of thousands of dollars while reducing greenhouse gas emissions.”
“We know that increasing energy costs are affecting Victorians and we are working with households and businesses to cut their energy bills.”
The scheme encourages Victorian businesses and households to take advantage of the full range of the program designed to help them manage their energy costs while reducing greenhouse gas emissions.
The initiative helps support long term sustainability and jobs growth and new innovations and technologies in lighting industry.
HOW DOES VICTORIAN ENERGY UPGRADES WORK?
Victorian Energy Upgrades is an energy efficiency program by the Victorian government that gives every Victorian household and business access to rebated energy saving products and services.
Every upgrade allows businesses accredited under the program called Accredited Providers (APs) to generate Victorian Energy Efficiency Certificates (VEECs). Each certificate represents one tonne of greenhouse gas abated. APs then sell these certificates to energy retailers, who are liable to buy a certain amount of certificates every year. Revenue generated through the sale of VEECs enables APs to offer energy consumers special benefits that may reduce the cost of undertaking these energy efficiency improvements.
In 2018, a total of 6.1 million VEECs were created under the VEU scheme. This year (2019), the program is aiming to create 6.3 million certificates, which is equivalent to 6.3 million tonnes of greenhouse gas abatement through energy efficiency.
VEU TARGETS FOR THE YEARS AHEAD
|Year||Number of Victorian Energy Efficiency Certificates (VEECs)||Greenhouse Gas Abatement (Tonnes)|
|2016||5.4 million||5.4 million|
|2017||5.9 million||5.9 million|
|2018||6.1 million||6.1 million|
|2019||6.3 million||6.3 million|
|2020||6.5 million||6.5 million|
Currently, LED replacement is the most popular activity for energy efficiency upgrades under the VEU program. APs and their representatives are replacing old lights including CFLs, globes, and fluorescent tubes with LED lights that are 80% more energy-efficient than traditional bulbs. Eligible households and businesses are taking advantage of the program to save money on energy bills and make their house/office look better at little to no cost.