Heating upgrades drive big savings for families

More Victorian families are slashing their power bills by upgrading to energy-efficient heating and cooling thanks to the Victorian Energy Upgrades (VEU) program. 

This week, the program passed the milestone of 100,000 households accessing upgrades in 2025, with participation on track to exceed 170,000 by the end of the year. 

These upgrades are helping Victorians stay warm in winter, cool in summer and take control of their energy costs. 

Real savings 

More than 41,000 households have already accessed discounted heating and cooling upgrades in 2025, saving households up to $5,530 on the cost of upgrading appliances and more than $1,000 on their annual energy bill. 

So far this year more than 18,000 households have upgraded their inefficient gas water heating to electric, saving them up to $330 off their energy bills annually. 

Hot water systems are one of the most popular upgrades, with savings of up to $2,030 available off the cost of installing a locally made energy-efficient hot water system when you combine a Solar Victoria rebate and a Victorian Energy Upgrades discount. 

A new all-electric home with solar can save up to $1,820 a year on energy bills. An existing home can save around $2,000 annually by going all-electric with solar. 

Last year the VEU saved households almost $54 million off their energy bills, putting money back in the pocket of Victorian families. 

Victorians can access discounts on a wide range of upgrades including reverse cycle air conditioners, heat pump hot water systems, induction cooktops, weather sealing and more. 

Strengthening the VEU program 

The Victorian Government is also undertaking a Strategic Review of the program to ensure it remains fit-for-purpose and continues to play a pivotal role in reducing emissions and energy bills for all Victorians. 

The Review is exploring ways to streamline legislation, reduce red tape, and improve access for households and businesses. The Government is now considering its response to Review findings, focusing on enabling large-scale electrification, stronger consumer protections and modern regulatory tools for the Essential Services Commission. 

The program also supports businesses and tradespeople delivering installations, supporting 2,700 jobs and boosting the economy.  

For more information, visit energy.vic.gov.au/victorian-energy-upgrades.