Dear Valued Partners,
This month brings several important regulatory developments across the Victorian Energy Upgrades (VEUVictorian Energy Upgrades is a Victorian government energy efficiency program that gives every Victorian household and business the opportunity to receive rebates or discounts on energy saving products.), Energy SavingsElectricity or gas savings or both. Scheme (ESSThe NSW Energy Savings Scheme (ESS) provides financial incentives to install, improve or replace energy savings equipment and appliances in NSW households and businesses. The ESS was established in 2009. Financial incentives are in the form of tradeable certificates, called energy savings certificates (ESCs). Generally, householders and businesses who fund energy savings activities transfer the right to create ESCs to Accredited Certificate Providers (ACPs) in return for a discount on the cost of the energy savings activity. The MWh savings from the project determines the number of ESCs that can be created. The ESS works by allowing ACPs to create and register ESCs for energy savings that are supported with appropriate evidence. ESCs are then purchased each year by mainly electricity retailers operating in NSW to meet their share of a legislated annual energy savings target.), Peak Demand Reduction Scheme (PDRS) and the Clean Energy RegulatorThe Clean Energy Regulator is the Australia Government body responsible for accelerating carbon abatement for Australia through the administration of the National Greenhouse and Energy Reporting scheme, Renewable Energy Target and the Emissions Reduction Fund. More (CER). These changes will impact installation practices, customer minimum co-payment amounts, battery incentives and future program participation.
We encourage all partners to familiarise themselves with the updates below and review internal processes to ensure ongoing compliance.
VEU UPDATE – SPACE HEATING & COOLING REVIEW
The Department of Energy, Environment and Climate Action (DEECA) has published its response to the Space Heating & Cooling Review consultation, outlining several proposed changes to reverse cycle air conditioner (RCAC) activities that are expected to commence from 30 September 2026.
Key proposed changes
- Residential multi-split RCAC incentives will be capped at 20 kW. Systems larger than 20 kW may still be installed; however, no additional VEU incentives will apply above the 20 kW threshold.
- The incentive cap will not apply to non-residential installations.
- The minimum customer co-payment will increase to $3,000 (incl. GST) for ducted RCACs and multi-split RCACs with a cooling capacity of 10 kW or greater.
- The existing $1,000 (incl. GST) minimum co-payment will continue to apply for multi-split RCACs below 10 kW.
- The department has also confirmed that further consultation on improving RCAC system sizing and design practices will occur later this year.
Please note: these changes remain proposed at this stage, pending further confirmation from the Essential Services Commission (ESCAn energy savings certificate (ESC) is a tradeable certificate created under Division 7 of Part 9 of the Electricity Supply Act 1995. Each ESC represents one notional megawatt hour (MWh) of energy.). While the Department of Energy, Environment and Climate Action (DEECA) has released its response to consultation confirming its intended position, the ESC has advised that it will communicate the impact of the changes to the VEU Registry system and program documents closer to the commencement date. The VEU Specifications have not yet been formally updated to reflect these changes.
We will continue to keep you informed and provide further guidance as additional information becomes available or when the changes are formally implemented.
VEU UPDATE – MIDEA MULTI-SPLIT SYSTEMS
The Essential Services Commission (ESC) has issued an update regarding the previously identified compliance issues affecting certain Midea multi-split air conditioning systems.
Midea has confirmed that the following models have been re-tested and re-rated to a current rating of 32A:
- MULMI0618B
- MULMI0619B
- MDV-V235WN1(AU)-R
- MDV-V235WN1(AU)-A
As a result, and consistent with Energy Safe Victoria’s (ESV) position, accredited persons are not required to undertake retrospective remediation of previously installed systems, provided they were installed using 32A-rated cabling and a 32A Residual Current Circuit Breaker with Overcurrent Protection (RCBO).
Partners installing these products should ensure all future installations continue to comply with the latest manufacturer specifications and the Wiring Rules (AS/NZS 3000).
The Midea Product Notice can be accessed via the link below for more information.
PDRS UPDATE – NEW BATTERY ACTIVITIES COMMENCING 1 SEPTEMBER 2026
IPARTIndependent Pricing and Regulatory Tribunal has approved significant changes to the Peak Demand Reduction Scheme (PDRS), with three new Battery Energy Storage System (BESS) activities commencing from 1 September 2026.
The new activities include:
BESS 3 – Install a new behind the meter battery energy storage system (apartments)
BESS 4 – Install a new behind the meter battery energy storage system (small and medium businesses)
BESS 5 – Install a new behind the meter energy storage system (commercial and industrial businesses).
These new activities are expected to create significant opportunities within the NSW battery market.
Northmore Gordon is currently progressing its accreditation application for BESS 3, BESS 4 and BESS 5 activities. We will keep our partners informed of our progress and provide further guidance, training and onboarding information closer to the commencement date.
ESS (NSW) UPDATE
Partners are reminded that from 1 July 2026, installations or replacements involving gas-fired boilers, gas-boosted water heaters and gas space heaters are no longer eligible under the Energy Savings Scheme (ESS).
We encourage all partners to verify project eligibility before commencing works and contact Northmore Gordon where clarification is required.
CER UPDATE – CHEAPER HOME BATTERIES PROGRAM
The Clean Energy Regulator continues to progress the Federal Government’s Cheaper Home Batteries Program under the Small-scale Renewable Energy Scheme (SRESSmall-Scale Renewable Energy Scheme).
Eligible battery installations may generate Small-scale Technology Certificates (STCsSmall-scale Technology Certificate under the Australian Renewable Energy Target. More), helping reduce the upfront cost of battery systems for households and small businesses.
Partners undertaking battery installations should ensure systems meet all eligibility requirements before promoting available incentives to customers.
NSW eCERT & BRIDGE SELECT UPDATE
Bridge Select is actively working towards integration with the NSW eCert platform, introduced by Building Commission NSW. Please note that from 1 July 2026, the BCNSW eCert portal became mandatory for all Certificates of Compliance for Electrical Work (CCEWs), with handwritten and PDF forms no longer accepted.
At this stage, no action is required from partners.
Integration is currently targeted for mid-July 2026, subject to technical onboarding and system integration requirements.
Further updates will be provided as implementation progresses.
IMPORTANT REMINDER – CONSUMER COMPLAINTS
Consumer complaints remain a key area of regulatory focus across the VEU program.
Partners are reminded that all consumer complaints must be investigated promptly and managed professionally. This includes complaints relating to workmanship, product performance, warranties and customer service.
Failure to appropriately address consumer complaints may result in increased regulatory scrutiny and could jeopardise ongoing engagement and participation under the Victorian Energy Upgrades (VEU) program.
Maintaining effective complaint handling procedures and timely communication with customers is essential to delivering positive consumer outcomes and maintaining program integrity.
COMPLIANCE TIP OF THE MONTH
Quality Evidence = Faster Processing
Many validation delays continue to result from incomplete or poor-quality evidence.
Before submitting projects, ensure:
- All required photographs are clear and legible.
- Product labels and serial numbers are visible.
- Geotagging requirements have been met where applicable.
- Documentation is complete and consistent with the installation.
A few extra minutes spent verifying evidence before submission can significantly reduce RFIs and validation delays.
CLOSING REMARKS
As regulatory requirements continue to evolve across the VEU, ESS, PDRS and CER programs, maintaining strong compliance systems and proactive quality assurance remains more important than ever.
Northmore Gordon is committed to supporting our partners through these changes while maintaining the integrity of the programs and delivering positive outcomes for consumers.
Should you require clarification on any of the updates outlined above, please contact our Compliance Team via compliance@northmoregordon.com or call 03 9046 1914.
Kind regards,
Northmore Gordon Compliance Team
