Market Update | 21 June

• The Australian Gas Infrastructure Group releases a survey aimed to better understand Victorian businesses’ degasification journey
• ESS Rule Change affects minimum co-payment for HEER and IHEAB Activities
• DEECA Delays the introduction of RDCs under the VEU until further notice

Decarbonisation Survey for Victorian Businesses

The Victorian Chamber of Commerce and Industry is currently conducting a survey aimed at gaining deeper insights into the needs of Victorian businesses as they navigate the transition to low-carbon energy alternatives. This initiative aims to uncover key opportunities and potential barriers to assist in further developing the state’s degasification roadmap for a lowered dependence on Natural Gas.

Understanding the complexities associated with fuel switching, gas efficiency and electriciation for industry is paramount in ensuring the Government plans and targets are considered. Ecovantage assists businesses with diverse needs through our expertise in Measurement and Verification (M&V) projects as they undertake these projects. These initiatives are tailored to facilitate fuel switching and support businesses in their decarbonisation efforts to adopt cleaner energy solutions. If your business is directly impacted, we encourage you to participate in the survey to ensure your voice is heard.

NSW HEER Program Changes

This week, anticipated changes to the Energy Saving Scheme (ESS) Rules have taken effect, particularly impacting the Home Energy Efficiency Retrofits (HEER) program. The minimum co-payment under HEER has been increased significantly from $30 + GST to $200 + GST per end-user equipment (EUE). These updates apply to installations of water heaters, air conditioning units, and pool pumps under Activities D5 and D16-D21 of HEER, mandating a minimum co-payment of $200 + GST. Furthermore, Activities D17-D21 will see changes to baseline energy consumption and coefficient adjustments for water heater installations.

NSW IHEAB Program Changes

In addition to HEER, changes to the Installation of High Efficiency Appliances for Business (IHEAB) have also been implemented. Similar to HEER, IHEAB now requires a minimum co-payment of $200 + GST per EUE (Activity F16, F17).

Further effective changes:

• • Four-sided refrigerated display cabinets are no longer eligible for ESC creation
  • New RDC installations are no longer eligible for ESC creation, the RDC must replace an existing product of the same type.
  • RDC asset lifetime has been reduced from 12 years to 8 years for classes 7, 8, and 11.

The VEU announces a delay on Refrigerated Display Cabinets

The Victorian Energy Upgrades (VEU) program has issued an announcement regarding the delay of the Refrigerated Display Cabinet (RDC) Activity. This decision follows concerns raised by the Department of Climate Change, Energy, the Environment, and Water (DCCEEW), prompted by recent issues in New South Wales and historical challenges within the VEU framework. DEECA has advised that the introduction of incentives for plug-in RDC activities will be postponed until further notice. This delay allows for a thorough investigation into the activity to be consistent with the Act and the program. RDCs with GEMS classes 12 to 15 which use a common central condensing system to supply units, requiring a qualified tradesperson to install, remain eligible under the program.

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.