Clarifying eligibility requirements for space heating and cooling activity (activity 6)

Clarifying eligibility requirements involving replacement of multiple products under decommissioning scenarios

The commission’s position is that:

For upgrades involving the replacement of central heating systems – upgrades involving the replacement of multiple ducted gas heaters, ducted reverse cycle air conditioners and/or slab heaters at a residential and/or commercial premises under the activity’s decommissioning scenarios (scenarios (iii), (iv), (v), (vii) and (viii)) are eligible under the space heating and cooling activity (activity 6).

For upgrades involving the replacement of room-based heating systems – upgrades involving the replacement of multiple hard wired resistance electric room heaters are NOT eligible under the activity’s decommissioning scenarios (scenarios (i) and (ii)). Only one hard wired resistance electric room heater is able to be claimed at a premises.

Our position is informed by the expected greenhouse gas emissions abatement to be delivered by these upgrades as follows:

We recognise there are residential and commercial premises which are large in size and may require replacement of more than one of central heating system. Given the central heating nature of ducted gas heaters, reverse cycle air conditioners and slab heaters, allowing Victorian energy efficiency certificates (VEECs) to be awarded for decommissioning of these multiple products will not result in an overestimate of the overall greenhouse gas reduction for these activities. This is because these products are likely to service an area similar in size to the assumed area used in the prescribed greenhouse gas equation for activity scenarios (iii), (iv), (v), (vii) and (viii).

Allowing VEECs to be awarded for decommissioning of multiple room-based heating systems (i.e. hard wired resistance electric room heaters) will likely result in an overestimate of the overall greenhouse gas reduction for these activities. This is because these products are likely to service an area much smaller in size to the assumed area used in the prescribed greenhouse gas equation for activity scenarios (i) and (ii).

Please note that:

upgrades involving the replacement of multiple hard wired resistance electric room heaters are eligible to be claimed under the activity’s no decommissioning scenario (scenario (xi))

for upgrades involving the replacement of multiple heaters, co-payments apply to each product installed. The co-payment requirements are set out in table 6.4 of the Victorian Energy Upgrades Specifications 2018 (VEU Specifications).

the number of upgrades being claimed must not exceed the limits set for the activity as set in Schedule 4 of the Victorian Energy Efficiency Target Regulations 2018 (VEET Regulations). These limits are also set out in table 18 of the Water Heating and Space Heating and Cooling Activity Guide.

Compliance and enforcement

Upgrades under the activity’s decommissioning scenarios can only be claimed where the installer complies with the decommissioning requirements as stated in the VEET Regulations and VEU Specifications.

We will monitor compliance of VEEC creation claims involving the replacement of multiple of these products. We may require accredited persons to provide evidence that multiple products have been decommissioned as part of assessment of certificate creations, including:

Victorian Building Authority (VBA) compliance certificate or certificate of electrical safety, including description of of the work carried out, type and number of product(s) decommissioned, and method of decommissioning.

Geo-tagged photographs which are date and time stamped, showing:

existing product(s) before the upgrade providing eligibility (for installations involving decommissioning)
brand, model and serial number of the existing product(s) (for installations involving decommissioning – not required for activity 28)
gas pipe of the existing product(s) sealed and/or capped using appropriate materials (where the existing product is a gas heater)
existing product(s) rendered permanently unusable (for installations involving decommissioning)
existing product(s) ready to be removed from the consumer’s premises (for installations involving decommissioning)
location of the existing product(s) – the photograph to be taken at a wide angle to show the location of the product(s) (where product(s) has not been removed).

For installation of multi-split systems in residential premises, record which includes information on each room and the size of each room which was heated and cooled by the existing product(s).

The commission may take compliance and enforcement action against accredited persons who create Victorian energy efficiency certificates (VEECs) that do not comply with the VEU program rules, including:

Requiring surrender of certificates for activities deemed by the commission to be ineligible.

Suspending, cancelling or not renewing accreditation.

Imposing conditions on accreditation.

Updates to activity guide

We have updated the Water Heating and Space Heating and Cooling Activity Guide (the activity guide) to clarity eligibility requirements as stated above and make minor amendments to the record keeping requirements for water heating and space heating and cooling activities as follows:

To clarify that for invoice/proof of purchase record requirement, the number of installed product(s), the price of the product(s), the VEEC incentive amount and the amount paid by the energy consumer for the product(s) must be recorded.

To clarify that for the certificate of electrical safety and/or VBA compliance certificate record requirement, the number of product(s) installed and decommissioned must be recorded.

Please review tables 13 (pages 19-20) and 26 (page 37) of the activity guide for further information on the record keeping requirements for these activities.

Clarifying eligibility requirements for space heating and cooling activity (activity 6)

31 March 2025

Clarifying eligibility requirements involving replacement of multiple products under decommissioning scenarios

Compliance and enforcement

Updates to activity guide

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