VICTORIAN households are saving thousands on their energy bills thanks to a surge in uptake of energy-efficient heating and cooling systems under the Victorian Energy Upgrades (VEU) program.
Energy and Resources Minister Lily D’Ambrosio revealed that more than 99,000 households have already participated in the program this year, with numbers expected to top 170,000 by the end of 2025.
The upgrades—ranging from reverse-cycle air conditioners to electric hot water systems—are helping residents stay comfortable year-round while cutting costs. In 2025 alone, more than 41,000 homes have accessed discounted heating and cooling upgrades, saving up to $5,530 on installation costs and more than $1,000 annually on power bills.
A further 18,000 households have swapped inefficient gas water heating for electric systems, saving up to $330 a year. Combined rebates from Solar Victoria and the VEU can slash as much as $2,030 from the price of a locally made energy-efficient hot water system.
Government figures show that an all-electric home with solar can save up to $1,820 annually, while existing homes making the switch could save around $2,000 a year. Last year alone, the VEU program shaved nearly $54 million off household energy bills.
The program also boosts the economy, supporting about 2,700 jobs in installation and related trades. A government review is underway to make the scheme even more accessible for households and businesses.
“We’re on the side of Victorian families and helping them cut their energy bills in a time where every dollar counts,” Ms D’Ambrosio said. Member for Eltham Vicki Ward added: “The VEU program is helping to lower energy bills during this cost-of-living crisis, and I encourage everyone to see what upgrades are available.”
For more information, visit energy.vic.gov.au/victorian-energy-upgrades.