What are Victorian Energy Efficiency Certificates and What Is the Spot VEECs Price
Major Benefits
Energy efficiency has become an important part of everyday life in Victoria. People want lower energy bills, better comfort and a lighter environmental footprint. That is why the Victorian Government created the Victorian Energy Upgrades Program, which encourages households and businesses to switch to energy-efficient products. When someone searches for a Victorian energy rebate today, they usually come across this program quite quickly because it sits at the centre of Victoria’s long-term emissions reduction strategy.
Victorian Energy Efficiency Certificates, more commonly known as VEECs, sit behind this entire program and support Victorian Energy Upgrade Rebates.
Let us explain to you the concept of VEECs in detail. By the end of this blog, you will understand what VEECs represent, what is spot VEECs price and how they support the Victorian energy rebate.
Table of contents
- What Are Victorian Energy Efficiency Certificates?
- How VEECs Are Created?
- Why VEECs Exist?
- VEEC Targets Over the Years
- VEEC Price: How It Works?
- How VEECs Support the Victorian Energy Rebate
- Conclusion
- Frequently Asked Questions
VEECs ( Victorian Energy Efficiency Certificates ) are units that represent verified energy savings achieved through approved upgrades. According to the Essential Services Commission, one VEEC equals one tonne of greenhouse gas emissions avoided as a result of energy-efficient improvements made in a home or business.
If an upgrade helps your home use less energy, the avoided emissions are measured and converted into VEECs. VEECs exist to encourage Victorians to adopt more efficient technologies. Instead of simply telling people to save energy, the state created a measurable system that rewards energy savings at scale. Over time, this helps reduce overall emissions across Victoria and supports the state’s long-term climate goals.
When a household or business replaces an older appliance with a more efficient one, the new appliance uses less energy. This reduction means fewer greenhouse gas emissions. The difference between the old system and the new system is measured in tonnes of CO₂ equivalent. That measurement becomes VEECs.
Accredited providers like EcoOrigin handle the technical and compliance side of creating VEECs. They ensure the upgrade meets all program rules and that the emissions reduction is accurately calculated. Once verified, the certificates are created under the Victorian Energy Upgrades program.
From the household’s point of view, nothing needs to be done beyond completing the upgrade with an authorised provider. The creation of VEECs happens behind the scenes and is managed in line with government standards. The important point is that VEECs reflect the real environmental benefit of choosing more efficient technology. They show how individual upgrades contribute to statewide emissions reduction goals.
Victoria has made strong commitments to reducing greenhouse gas emissions and increasing statewide energy efficiency. Energy use in homes contributes significantly to the state’s overall emissions profile, especially heating and cooling, which account for a large share of household energy consumption.
VEECs were introduced to:
- Encourage ongoing adoption of efficient technology
- Support households in reducing energy bills
- Reduce pressure on the electricity grid
- Help Victoria meet emissions reduction targets
- Stimulate innovation within the energy-efficient product market
By converting emissions savings into certificates, the state created a system where energy efficiency becomes measurable, trackable and scalable. Instead of seeing upgrades as isolated household decisions, VEECs turn them into part of a coordinated statewide strategy.
The Victorian Energy Upgrades program operates with yearly targets that outline how many certificates must be created to meet statewide emissions objectives. These targets are set by the Victorian Government and reflect the environmental ambition for each period. They also show how the program has grown over time and how it will continue to evolve in the coming years
You can see the scale of the program through these official targets
Source: Essential Services Commission
VEECs have a value that can change over time and this value is shaped by a range of program-level and environmental factors. Although the detailed mechanisms behind these changes sit within the broader Victorian Energy Upgrades framework, the key point for households is that VEEC prices naturally rise or fall depending on statewide activity within the program.
These price movements do not require any action from households and they do not affect how you complete your energy-efficient upgrade.
If you ever want to check the current VEEC price, you can view it here: VEEC calculator.
When someone installs a high-efficiency split system or a heat pump under the program, the value of VEECs helps reduce the upfront expense. This is why households see lower prices for efficient products. It is not a discount from a retailer. It is a benefit created by the VEEC framework.
Understanding the Victorian Energy Rebate & VEECs
The Victorian energy rebate concept is based on a simple idea. The program rewards people for choosing energy-efficient upgrades by supporting the cost through VEECs. This aligns with Victoria’s long-term climate goals.
The rebate mechanism works differently from traditional government support. Instead of direct payments, the system focuses on long-term energy savings. This creates a sustainable path for Victorian households to reduce their energy bills over time.
How VEECs Help Reduce the Cost of Upgrades
When VEECs are created after an eligible upgrade, they directly offset the cost of energy-efficient products. For example, installing efficient air conditioners, heat pump hot water systems, LED lighting, or insulation upgrades qualifies under the Victorian Energy Upgrades (VEU) program. Here's how the process works step by step to deliver these benefits to households.
Step 1: Complete your upgrade:
An accredited provider like EcoOrigin installs the approved energy-efficient product, such as a high-efficiency split system or heat pump.
Step 2: VEECs are created:
Once the upgrade is complete, the provider submits the activity to the VEU program. They calculate greenhouse gas savings; each VEEC represents one tonne of emissions avoided, depending on the product and activity type.
Step 3: VEECs are sold:
The provider sells these VEECs to large energy retailers through the VEU Registry. Retailers must surrender them to the Essential Services Commission (ESC) to meet their legal obligations.
Step 4: You get the discount:
The income from selling VEECs allows the provider to offer you a discounted upfront price. It's a direct result of the program's design.
Step 5: Enjoy ongoing savings:
After finalisation, you start seeing lower energy bills and better home performance right away.
This system makes efficient products more affordable while driving long-term savings and real environmental impact. It shifts focus from short-term handouts to measurable, statewide benefits.
VEECs are a unique and effective mechanism that allows Victoria to measure and track real energy savings across the state. Each certificate represents a verified reduction in greenhouse gas emissions and the system ensures that energy efficiency improvements are consistently accounted for and valued.
Over time, this framework has created a clear structure for encouraging efficiency upgrades, setting targets and maintaining accountability. While the value of VEECs may shift, the program itself provides stability and direction, underpinning Victoria’s ongoing efforts to make energy use smarter, more efficient and more sustainable.
1. What is a VEEC?
A VEEC (Victorian Energy Efficiency Certificate) represents one tonne of greenhouse gas emissions avoided through approved energy-efficient upgrades.
2. Who creates VEECs?
Accredited providers create VEECs after verifying that an upgrade meets the Victorian Energy Upgrades program requirements.
3. What types of upgrades generate VEECs?
Approved heating, cooling, hot water, lighting and other energy-efficient products can generate VEECs when installed according to program standards.
4. How is one VEEC measured?
One VEEC equals one tonne of greenhouse gas emissions avoided. This is calculated by comparing the energy use of the old system versus the new efficient system.
5. Are VEEC prices fixed?
No. VEEC prices can change over time based on program activity and statewide energy efficiency trends.
