Market Update | 15 December

• VEU to expand into Induction Cooktop activity with consultation in the first half of 2024
• The Victorian Gas Substitution Roadmap identifies 9 priorities and an increase in support for Renewable Gases
• CER Announces a new Accreditation Scheme Operator will be released in February 2024

VEU Program Announced to Include Induction Cooktops

On Thursday this week, the Victorian Government released an updated Gas Substitution Roadmap. It included an announcement that the VEU program will expand to include an Induction Cooktop activity, which is set to be consulted on in the first half of 2024. The statement released detailed the benefit of replacing gas cooktops is within a range of $350 to $400 annually on fixed network charges per home. The activity addition comes after the introduction of Space Heating and Cooling, and Heat Pump activities introduced throughout 2023.

Victorian Gas Substitution Roadmap Summary

In the Roadmap released on Thursday, it was highlighted that the electrification transition will be ‘staged and careful’, allowing time for industry and consumers to adjust. Issues surrounding workforce changes within the transition were identified, and will be addressed in the 2024 roadmap update. A total of nine priorities have been identified under the roadmap, outlined below. There is a distinct increase in support for Renewable Gases in this iteration of the paper, as outlined in Items 4 and 7. 

1. Deliver more all-electric precincts: all new homes where planning permits are submitted after 1 Jan 2024 will be all-electric
2. All-electric, efficient homes: the pathway to phase out gas use in homes and commercial buildings will be addressed in 2024 
3. Transition Government’s own gas use: all new government facilities to be all-electric 
4. Industrial users: Assist industry in adopting renewable gases
5. Build skills and capability: Increase skills and training to build the electrification workforce 
6. Support Victorians to participate in the transition: Rebates of up to $4000 for gas heating system replacements, up to $1000 for hot water replacements (Solar Homes), and up to $720 for gas to electric hot water systems (VEU)
7. Unlock renewable gases to service hard-to-abate sectors: A policy directions paper to be released in mid-2024
8. Maintain gas reliability throughout the transition: Additional Interim gas supply infrastructure to mitigate short-term supply risks

CER Announces a new Accreditation Scheme Operator will be released in February 2024

The Clean Energy Regulator sent a release today (15/12) outlining that a new Accreditation Scheme Operator (ASO) body for the SRES installer and designer accreditation will be announced in February. Both installers and designers will be required to become reaccredited with the new body within three months of the release. This will involve submitting an online form with current details, and a new accreditation number will be issued based on the information.

At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.

Katie Tebbatt | Business Development Manager, Energy & Carbon Services
Katie specialises in Commercial Lighting (NSW, VIC & SA), Measurement & Verification, and energy certificates including LGCs & ACCUs.