We have released updates to Victorian Energy Upgrades (VEU) program guides to reflect changes to the commercial and industrial heat pump water heater activity (Activity 44) and high efficiency motor activity (Activity 31).
Changes to VEU commercial and industrial heat pump water heater and high efficiency motors activities
31 March 2026
The Department of Energy, Environment and Climate Action has released updated Victorian Energy Upgrades Specifications 2018 - version 22.0 (VEU Specifications), which:
- Introduces several changes to the commercial and industrial heat pump water heater activity (Activity 44), related to product requirements, consumer co-payments and incentives.
- Updates the relevant Greenhouse and Energy Minimum Standards (GEMS) determination for the high-efficiency motors activity (Activity 31).
Changes to the commercial and industrial heat pump water heater activity (Activity 44)
The following changes will apply to activity 44 upgrades from 31 March 2026:
- Removal of the average heat pump thermal capacity eligibility threshold of 20 kW for products that have an average insulated storage volume equal to or less than 700 litres but greater than 425 litres.
- Increase in the minimum co-payment amount from $1,000 to $10,000 incl. GST.
- Increase in the scaled incentive for products below the 10kW heat pump thermal capacity threshold, which have multiple compressors.
Please refer to VEU Specifications - v 22.0 for further details of these changes.
We have updated the following forms and guides to reflect the above changes:
- Commercial and Industrial Heat Pump Water Heater Activity Guide
- Commercial and Industrial Air Source Heat Pump Water Heater Product Application Guide
- VEEC Assignment Form Template: Commercial and Industrial Heat Pump Water Heater Activity (Activity 44) – Business and Non-Residential Premises.
Accredited persons and scheme participants will need to use the updated VEEC assignment form for activities undertaken from 14 April 2026.
Activity 44 submissions in the VEU Registry
We are updating the VEU Registry to reflect the activity 44 changes in the VEU Specifications, which is expected to take approximately three weeks. While we make these updates, accredited persons will be unable to submit activity 44 upgrades in the VEU Registry system that are completed on or after 31 March 2026. We appreciate your patience during this time.
We will notify industry once the VEU Registry has been updated and submissions for activity 44 upgrades can resume.
There will be no disruption to submission of activity 44 upgrades completed prior to 31 March 2026.
Changes to GEMS requirements for high efficiency motors (activity 31)
The VEU Specifications has been updated to reflect the updated Greenhouse and Energy Minimum Standards (GEMS) Determination reference for products under this activity.
The update requires the measurement, testings, and ratings for products to achieve the minimum performance requirements in the VEU Specifications to be made in accordance with the GEMS (Three Phase Cage Induction Motors) Determination 2019 unless otherwise stated, updated from Determination 2012.
We have updated the Appliance Activity Guide to reflect this change.
Where to get help
If you have any questions about this update, please contact the Victorian Energy Upgrades program support team on (03) 9032 1310 or veu@esc.vic.gov.au.