VEET Scheme having a tremendous financial & abatement impact

About this update

This dated news record has been reorganised for clear reading and connected to current guidance.

Publication date: August 3, 2017.

Status note: Present-tense statements, market figures, deadlines and program details in the archived record belong to its publication date. Check current official sources before making a decision.

What this article reported

The VEET scheme, now rebranded as the Victorian Energy Upgrades (VEU) program is having a tremendous impact, saving money for Victorian households and businesses (over $400M this year alone) and reducing carbon emissions in a real and meaningful way. This year alone emissions savings equivalent to half a million cars being removed from the roads. Read full details below. Wattly is proud to be a major participant in the program, please see the case study of the upgrade of Metcash distribution centre, performed by one of our partners; incentives provided through Wattly under the VUE program.

Victorian Government Press Release
Metcash Distribution Centre Lighting Upgrade Video

How to use this information now

For current use, confirm the applicable scheme rules, regulator notices, market date and reporting period. Keep historical prices or forecasts separate from present quotes and verified outcomes.

Separate source-reported facts from forecasts, targets and commentary. For a current project, retain the official source, version, effective date, assumptions and decision record in the evidence file.

What is the Victorian Energy Upgrades (VEU) program and how does it work?

The Victorian Energy Upgrades (VEU) program, formerly known as the VEET scheme under the VEET Act 2007, supports eligible energy efficiency improvements through Victorian Energy Efficiency Certificates (VEECs). Accredited providers create certificates for activities meeting specific scheme requirements. The program offers Victorian households and businesses rebates or discounts on energy-saving products and upgrades. Eligibility depends on the specific activity, premises, equipment and scheme conditions—a technically sound upgrade is not automatically eligible. Projects can use prescribed activities with standardized equipment requirements or project-based activities such as measurement and verification or benchmark rating for more complex sites. Early assessment of the right pathway helps identify necessary evidence before implementation begins.

What financial impact has the VEU program achieved for Victorian households and businesses?

According to the article, the VEU program saved Victorian households and businesses over $400 million in the year referenced (2017 alone). This substantial financial benefit demonstrates the program's effectiveness in delivering cost savings through energy efficiency improvements. The savings result from reduced energy consumption across participating households and businesses. Beyond direct financial savings, the program also generates revenue through certificate sales when eligible activities meet scheme requirements. We assist clients in maximizing these benefits by conducting energy audits to identify opportunities, preparing investment cases that quantify savings, and managing certificate pathways to ensure eligible activities generate appropriate proceeds.

What environmental benefits has the VEU program delivered?

The VEU program achieved emissions savings equivalent to half a million cars being removed from the roads in the year referenced in the article. This substantial environmental outcome reflects the cumulative impact of energy efficiency improvements across thousands of participating households and businesses throughout Victoria. Energy reductions translate directly to lower grid electricity demand and associated emissions, particularly where the electricity supply includes fossil-fuel generation. The program demonstrates how structured energy efficiency schemes create meaningful environmental outcomes at scale. Our carbon advisory services help organizations measure and verify these emissions reductions, assess compliance with reporting obligations, and develop transition pathways that connect energy improvements to organizational carbon reduction targets.

What types of projects are eligible under the VEU program?

The VEU program recognizes two project categories: prescribed activities and project-based activities. Prescribed activities use standardized equipment requirements and defined specifications, making them simpler to assess and implement. Project-based activities warrant investigation beyond prescribed standards for more complex sites and are assessed using either measurement and verification (comparing pre- and post-upgrade energy data) or benchmark rating (using NABERS ratings). Eligible activities can include solar installations, heating projects, cogeneration systems, lighting upgrades and other energy-efficient equipment. The correct method choice is a technical and procedural assessment, not simply the route showing the largest estimated certificate quantity. We assist in selecting the appropriate pathway by conducting energy audits, assessing technical feasibility and preparing project briefs that establish eligibility assumptions before implementation.

How can businesses ensure their energy efficiency project qualifies for VEU certificates?

Businesses should establish key information before committing to an upgrade: site address and premises use, existing and proposed equipment, project stage and intended dates, available energy data, any prior incentives or certificate arrangements, and the proposed provider's relevant activity and professional scope. Before relying on certificate contributions in an investment case, request the governing activity and document version, main eligibility assumptions, calculation basis, evidence responsibilities and commercial treatment of certificates. Show certificate price and quantity assumptions separately and confirm whether the quoted amount is indicative gross value or what the customer would actually receive after charges. We provide project screening, prepare evidence plans and manage certificate pathways, ensuring projects meet the Victorian Government's specifications and the Essential Services Commission's approval scope before detailed advice or calculations are finalized.

What was the Metcash Distribution Centre project and how did it demonstrate the VEU program's impact?

The Metcash Distribution Centre lighting upgrade was a case study referenced in the article, performed by Wattly's partner with incentives provided through Wattly under the VEU program. This project exemplified how larger commercial facilities could achieve significant energy and cost savings through targeted efficiency improvements. The upgrade showcased practical implementation of the VEU program at scale, delivering measurable financial and operational benefits. A video case study documenting the lighting upgrade was hosted on the Victorian Energy Saver website. Such case studies illustrate the type of work that generates both operational improvements and environmental outcomes. We deliver comparable commercial building assessments, measurement and verification services, and certificate support, helping businesses identify opportunities like the Metcash project and navigate the pathway to eligible incentives.

How does Northmore Gordon support businesses pursuing VEU certificates?

We provide comprehensive support across the VEU pathway. Energy audits identify opportunities and establish evidence quality. Feasibility studies assess technical and commercial viability of proposed upgrades. Investment case development quantifies financial benefits, capital requirements and certificate value. Project management oversees implementation and commissioning. Measurement and verification services establish baseline conditions, project boundaries and verify energy savings through pre- and post-upgrade data analysis. Certificate support services include project registration, nomination and evidence gathering. Our six-stage approach—Assess, Build the Case, Capture Value, Deliver, Procure and Perform—connects technical assessment with commercial decisions and ongoing performance. This structured approach helps businesses maximize energy savings, optimize certificate proceeds and demonstrate outcomes through verified results.

What should businesses avoid when planning a VEU project?

Businesses should avoid making early commercial commitments based only on headline rebate amounts. Before relying on certificate contributions, verify the governing activity version, eligibility assumptions, evidence responsibilities and actual customer proceeds after charges. Do not assume that a past solar or cogeneration project's certificate value and approved methodology establish eligibility for a new site today. Exact current specifications and the Essential Services Commission's relevant approval scope must be matched to the proposed project. Avoid treating technically sensible upgrades as automatically eligible—the scheme has specific requirements that must be assessed separately. Do not assume funding or certificate proceeds are secured until proper pathway assessment has been completed. We help businesses navigate these pitfalls by conducting early screening, documenting assumptions and separating technical merit from programme eligibility, ensuring projects are structured to meet current requirements.

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