Market Update | 25 October

• Co-Payments and Warranty Updated under the VEU
• Cooktops are Live
• All Energy Wrap & AEMC’s Inaugural Report on Consumer-Centric Net-Zero

VEU New Co-Payment and Warranty Rules from 1 February 2025.

Starting 1 February 2025, the Victorian Energy Upgrades (VEU) program is introducing new co-payment and warranty requirements for heat pump water heaters (HPWH) and reverse-cycle air conditioners (RCACs) under the program:

• • Five-Year Warranty: A five-year minimum product warranty will apply to all HPWH (up to 700 litres) and residential RCACs.
  • No Installation Warranty (TBD): Installation warranty requirements for HPWH and RCACs will not be introduced at this stage but may be reconsidered later.
  • Co-Payments:
    • HPWH (up to 700 litres): Minimum co-payment of $200.
    • Non-ducted RCACs (<10 kW): Minimum co-payment of $200.
    • Non-ducted RCACs (≥10 kW), multi-split, and ducted RCACs: Minimum co-payment of $1,000.
    • Cold rooms: Minimum co-payment of $500.

The department will ensure warranties align with Australian Consumer Law and VEU program regulations and full details on the forthcoming changes, as well as the Response to Consultation are available on Engage Victoria.

Induction Cooktop Incentives Start 25 October 2025.

Starting 25 October 2025, households in Victoria can enjoy new incentives for switching to induction cooktops under the VEU program. The introduction of this activity rounds out the full range of electrification options for homes. For each new induction cooktop purchase, consumers will receive two Victorian Energy Efficiency Certificates (VEECs).

For more details, including eligible products and a handy factsheet, visit: Induction Cooktop Discounts.

See below communications from the Department of Energy, Environment and Climate Action (DEECA) advising the release of:

• • Victorian Energy Efficiency Target Amendment (Induction Cooktops and Co-payments) Regulations 2024
  • Victorian Energy Upgrades Specifications 2018 – v 18.0

All-Energy Australia 2024: A Focus on Electrification and Demand Management.

All-Energy Australia 2024 attracted a record-breaking 10,000 attendees on its first day, showcasing a growing focus on demand-side technologies alongside the usual interest in solar and storage. Key themes across the event centered on electrification, energy management, and Australia’s decarbonisation challenges.

Attendees report that demand management sessions were overflowing, tackling everything from smart energy solutions to consumer behavior and the challenges of scaling demand response. Gaps in policy were a hot topic and the event reinforced the industry’s critical role in driving Australia’s energy transition.

In parallel with the energy transition at large, the Australian Energy Market Commission (AEMC) has released its inaugural report, A Consumer-Focused Net Zero Energy System, outlining strategic priorities to ensure equitable, secure, and consumer-centric outcomes in Australia’s evolving energy landscape. Read the full report here.

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.