Release of legislative amendments introducing a new commercial and industrial solar photovoltaic (PV) system activity, revision to high efficiency motors activity and other amendments

2 October 2025

The Department of Energy, Environment and Climate Action (department) has released the Victorian Energy Efficiency Target Amendment (Commercial and Industrial Solar) Regulations 2025  (Amendment Regulations) and updated VEU Specifications (version 21).

The Amendment Regulations and updated VEU Specifications introduces the following changes to the Victorian Energy Upgrades program:

• a new commercial and industrial solar photovoltaic (PV) system activity (C&I solar activity) for solar system installations between 30 and 200 kilowatts (kW) in size at commercial and industrial premises
• revisions to the high efficiency motors activity to:
  • include an additional efficiency level (IE3)
  • amend the greenhouse gas (GHG) abatement calculations for the activity
  • introduce co-payment requirement of $200 per product installed
• an extension of the induction cooktop activity to 30 June 2026
• an updated definition of residential premises and installation eligibility requirements for certain activities by building classification.

The changes made in the Amendment Regulations and updated VEU Specifications commenced on 29 September 2025.

Introduction of C&I solar activity into the VEU program

Streamlined accreditation pathway to undertake the C&I solar activity

We are providing a streamlined accreditation pathway for VEU accredited persons who have:

• demonstrated their capacity and capability to undertake commercial and industrial solar system installations
• a strong compliance record in delivering activities under the VEU program.

This streamlined accreditation pathway will ensure accredited persons are available to assist business energy consumers to access VEU incentives for this new activity as soon as possible.

How to apply under the streamlined accreditation pathway

Accredited persons must use this application form to apply to vary their accreditation conditions to be accredited to undertake this new C&I solar activity under the streamlined accreditation pathway.

To be considered in the first phase of approvals, accredited persons must submit this form to the commission for assessment by 8 October 2025.  We are requesting this form be completed by this date to ensure the timely approval of applications shortly after the activity’s legislative commencement date.  We will not be charging any fees in respect of applications submitted to the commission by 8 October 2025.

We will only approve applications using this form where the accredited person applying meets the below criteria:

• has completed and registered Victorian energy efficiency certificates (VEECs) for a minimum of four solar installations under the Measurement and Verification (M&V) method within the VEU Project Based Activities (PBA) stream
• has at least two years’ experience delivering or managing solar installations under the M&V method within the VEU PBA stream
• is not subject to any significant compliance investigations or actions by the commission at the time of submitting the application.   

Consultation on proposed competent and capable matters, training and competency and record-keeping requirements for C&I solar activity

We are seeking feedback from VEU program participants and industry on the administrative settings for the C&I solar activity. This will ensure we achieve the right balance between maintaining the integrity of the program/protecting consumers and minimising the red tape burden for participating businesses, in addition to aligning with established industry practices and standards where possible.

In support of this objective, we have released a consultation paper inviting stakeholder feedback on:

• proposed administrative requirements (training and competency and record-keeping requirements) for this activity
• proposed guidance on competent and capable matters for those applying to be accredited to undertake this activity
• potential accreditation conditions for accredited persons undertaking this activity.

How to provide feedback on C&I solar activity requirements

You can access the consultation paper from the commission website here: Consultation on guidance and administrative requirements for commercial and industrial solar PV system activity | Essential Services Commission.

We recommend you submit your feedback to us by completing the consultation submission form by Thursday, 16 October 2025. Alternatively, you can email your submission to veu@esc.vic.gov.au, using the subject line: ’Consultation submission – VEU commercial and industrial solar PV system activity’ by the same date.

Release of C&I solar activity program guides and accreditation forms in late October

Once the C&I solar activity requirements consultation is completed, we anticipate:

• settling our guidance and requirements informed by stakeholder feedback by late October 2025
• publishing new/updated program guides, accreditation forms, VEEC assignment forms and updated Victorian Energy Efficiency Target Guidelines on the commission website by 31 October 2025.

The program guides will provide guidance to support accredited persons and scheme participants understand their obligations and how to comply with the program rules for the activity.

Stakeholders will be able to apply to be accredited to undertake this activity once the updated accreditation forms are published on the commission website.

Anticipated timeline for VEEC creation in the VEU Registry for new C&I solar activity

We are currently working on changes to the VEU Registry to enable the creation of VEECs for the new C&I solar activity. We anticipate deploying changes to the VEU Registry in November 2025, which will enable accredited persons to create VEECs for this activity in the registry. We also note that accredited persons will also be able to register solar system installers and designers as scheme participants in the VEU Registry once these changes are deployed in November. 

We understand that the design and installation of most C&I solar system installations are likely to take months to install, prior to energisation, and anticipate these changes to enable creation of VEECs will be completed in time for claims of VEECs to be submitted by industry.

Please note that installation of solar systems for this activity can only be undertaken from the date the relevant accredited person is approved to undertake the activity. Therefore, solar systems which are already in the process of being installed are not eligible to claim VEECs retrospectively under the program.

Please reach out via email: veu@esc.vic.gov.au if you have any questions or concerns about this proposed timeline.

Timelines for implementation of the C&I solar activity

Changes to the high efficiency motor activity

Release of updated guides and forms

We have released the following updated guides and forms to reflect the changes to the activity:

• Updated Appliance Activity Guide guides to add an additional efficiency (IE3) level and the $200 co-payment requirement per product installed for high efficiency motors activity.
• Updated Product application form for high efficiency motors to add an additional IE3 efficiency level.
• Updated VEEC assignment form for high efficiency motors to reflect additional IE3 efficiency level and the $200 co-payment requirement per product installed.

Anticipated timeline for VEEC creation in the VEU Registry for revised high efficiency motor activity

We are currently working on changes to the VEU Registry to enable the creation of VEECs for the revised high efficiency motor activity. We anticipate deploying changes to the VEU Registry in November 2025, which will enable accredited persons to create VEECs for this activity in the registry.

Please reach out via email: veu@esc.vic.gov.au if you have any questions or concerns about this proposed timeline.

Extension of induction cooktop activity to 30 June 2026

Release of updated guide and updates to the VEU Register of Products

We have made the following updates to reflect the extension of the activity to 30 June 2026:

• Updated Appliance Activity Guide to reflect this extension.
• Updated all induction cooktop products listed in the VEU Register of Products to have an ‘effective to’ date of 30 June 2026.

Update to definition of residential premises and installation requirements in the VEET Regulations

We have updated the Obligations and Program Guide for Accredited Persons to update the definition of residential premises to reflect changes in the VEET Regulations as per below:

"residential premises means—

1. a building classified as a Class 1 building under Part A6 of Volume One of the Building Code; or
2. a sole-occupancy unit in a building classified as a Class 2 building under Part A6 of Volume One of the Building Code; or
3. a sole-occupancy unit in a building classified as a Class 3 building under Part A6 of Volume One of the Building Code; or
4. a building classified as a Class 4 building under Part A6 of Volume One of the Building Code;".

We have also updated the following activity guides to reflect the requirement that in addition to business or non-residential premises, activities 34, 37, 38, 39, 40, 41, 42 and 44 can be undertaken in  the common areas of a building that is classified under Part A6 of Volume One of the Building Code as a Class 2 or 3 building (pursuant to updated regulation 10(4) and 10(5)):

• Building Based Lighting Upgrades Activity Guide
• Gas Efficiency Activity Guide
• Commercial and Industrial Heat Pump Water Heater Activity Guide

Please note: 

• The above regulation amendment expands where commercial and industrial heat pump water heater activity (activity 44) can be undertaken to include the common areas of a Class 3 building (in addition to the common areas of a Class 2 building). 
• It is the commission’s view that water heaters installed under activity 44 which are not physically situated in the unit of a class 2 or 3 buildings need to service the water heating needs of multiple occupancy units in a class 2 or 3 building and/or the common areas of the building to be eligible to claim VEECs under this activity (i.e. the upgrade cannot service only a sole occupancy unit).