Gas space heater swap
Up to $1,610
Replace a gas space heater with an efficient reverse-cycle air conditioner. Published running-cost saving: up to $460 a year.
Heating and cooling discounts
Air conditioning through the VEU program: what's actually on offer.
There's no cash aircon rebate in Victoria, and anyone who tells you otherwise is selling something. What Victoria does have is a state discount program with up to $5,530 off efficient reverse-cycle air conditioning when you replace ducted gas heating. No income test. Figures checked against energy.vic.gov.au on 26 August 2026.
The published numbers
What energy.vic.gov.au quotes.
Ducted gas replacement
Up to $5,530
Remove and replace ducted gas heating with efficient reverse-cycle. Published running-cost saving: up to $1,140 a year.
These are the government's published "up to" figures. Your actual discount depends on your home, the unit and the Accredited Provider delivering it, which is why our quotes show the discount as its own line before you decide anything.
Who's eligible
Every Victorian household. No income test.
The program isn't means-tested. That matters for households earning above the Solar Homes $150,000 income cap: this program is still open to them, and for a ducted gas replacement it can be a substantial discount.
- All Victorian households and businesses can apply
- Upgrades must use an approved product with a minimum 5-year warranty
- Covers ducted and non-ducted reverse-cycle air conditioners that heat and cool
- Delivered only by accredited providers, regulated by the Essential Services Commission
- Statewide, with the same program in regional Victoria as metro Melbourne
Program detail: energy.vic.gov.au/victorian-energy-upgrades.
How it works
The discount comes off your quote up front.
- Tell us what you're running now: gas ducted, gas space heater, or old electric units.
- We size the right reverse-cycle system from the program's approved products list.
- The accredited provider in our install partner network applies the discount directly to your itemised quote.
- Install, certificate paperwork and program compliance are handled for you.
Because discounts vary with the certificate market and the product, no one can promise you the maximum figure before quoting your actual home. Anyone who guarantees "$5,530 off, always" before seeing your ducting is guessing. Your written quote holds the figure it states.
Common questions
Heating and cooling discounts FAQ.
Is there an air conditioning rebate in Victoria?
There's no cash rebate. What exists is a state discount program (its legal name is the Victorian Energy Upgrades program) that takes money off high-efficiency reverse-cycle air conditioners at the point of quote, applied by an accredited provider. Government-published figures run up to $5,530 depending on what you're replacing.
How does the VEU program cover air conditioning?
The Victorian Energy Upgrades (VEU) program discounts high-efficiency reverse-cycle air conditioners when they replace less efficient heating, most commonly gas ducted systems, gas space heaters or old electric units. The discount is applied to your quote by an accredited provider, covers ducted and split systems that both heat and cool, and has no income test. It's the only government-backed air conditioning support in Victoria.
How much is the air conditioning discount?
Per energy.vic.gov.au: up to $1,610 when replacing a gas space heater with an efficient reverse-cycle air conditioner, and up to $5,530 when removing and replacing a ducted gas heating system. Treat these as government-published ceilings. The exact discount depends on your home, the product and the provider delivering it. Figures checked 26 August 2026.
Who is eligible for the heating and cooling discounts?
All Victorian households and businesses can apply, and unlike the Solar Homes rebates there's no income test. That matters for households earning above the Solar Homes $150,000 cap: this discount is still open to them.
Does regional Victoria get the same discounts?
Yes, the program is statewide. Homes in Bendigo, Benalla, Cobram, Warrnambool and everywhere in between access the same discounts as metro Melbourne, through any accredited provider that services the area. Tidy Energy's install partner network covers 100+ Victorian towns.
What air conditioners qualify?
Approved products with a minimum 5-year warranty. The program covers a range of ducted and non-ducted reverse-cycle air conditioners that both heat and cool. Your quote names the exact unit and shows the discount as its own line item.
Can I replace my old gas ducted heating?
Yes, and it attracts the largest published discount, up to $5,530, because removing ducted gas and installing efficient reverse-cycle delivers the biggest energy saving. Energy.vic.gov.au also quotes running-cost savings of up to $1,140 a year for that swap.
Will a reverse-cycle air conditioner actually heat my home in a regional Victorian winter?
Yes, sized properly. Modern cold-climate reverse-cycle units are designed to keep heating through sub-zero mornings, the kind Benalla and the north-east serve up every July. The sizing matters more than the brand: a unit matched to your room sizes and climate zone heats comfortably where an undersized one struggles. That sizing is exactly what the quote process works out for your home.
How does the discount actually work behind the scenes?
Accredited providers create energy efficiency certificates when they deliver eligible upgrades. Energy retailers must buy those certificates, which funds the discount you receive. The scheme is regulated by the Essential Services Commission, and only accredited providers can deliver it. Tidy Energy's install partner network includes one.
The team was professional, helpful, and easy to deal with throughout the entire process. They explained everything clearly and kept me informed every step of the way. The installation went smoothly and was completed efficiently.
I truly appreciate all the assistance they provided with my queries. Their customer service was outstanding — they guided me through the entire process from start to finish and exceeded my expectations.
I had a great experience with Tidy Energy. The service was reliable, the setup process was straightforward.
I had a great experience with Tidy Energy. The team was professional, friendly, and responsive throughout the entire process. They explained everything clearly, kept me informed, and made the experience smooth and hassle-free. Highly recommend to anyone looking for a reliable and trustworthy energy company.
I had an excellent experience with Tidy Energy. Their team was professional, knowledgeable, and responsive throughout the entire process. They provided reliable service, communicated clearly, and made everything simple and stress-free. It's refreshing to work with a company that truly values its customers and delivers on its promises.
Outstanding service from start to finish! The installers were courteous, knowledgeable, and worked very efficiently. They made sure everything was installed properly and left the area clean afterward. I really appreciate how easy the whole process was. Thank you for providing such excellent service!
From the initial consultation to the final installation, the team was professional, knowledgeable, and efficient. They took the time to explain everything clearly, answered all questions, and made the entire process smooth and stress-free.
The team was professional, helpful, and easy to deal with throughout the entire process. They explained everything clearly and kept me informed every step of the way. The installation went smoothly and was completed efficiently.
I truly appreciate all the assistance they provided with my queries. Their customer service was outstanding — they guided me through the entire process from start to finish and exceeded my expectations.
I had a great experience with Tidy Energy. The service was reliable, the setup process was straightforward.
I had a great experience with Tidy Energy. The team was professional, friendly, and responsive throughout the entire process. They explained everything clearly, kept me informed, and made the experience smooth and hassle-free. Highly recommend to anyone looking for a reliable and trustworthy energy company.
I had an excellent experience with Tidy Energy. Their team was professional, knowledgeable, and responsive throughout the entire process. They provided reliable service, communicated clearly, and made everything simple and stress-free. It's refreshing to work with a company that truly values its customers and delivers on its promises.
Outstanding service from start to finish! The installers were courteous, knowledgeable, and worked very efficiently. They made sure everything was installed properly and left the area clean afterward. I really appreciate how easy the whole process was. Thank you for providing such excellent service!
From the initial consultation to the final installation, the team was professional, knowledgeable, and efficient. They took the time to explain everything clearly, answered all questions, and made the entire process smooth and stress-free.
Related pages
Go deeper.
- Heat pump hot water rebate: the other half of getting off gas
- Every Vic rebate stacked: solar, battery, hot water and heating discounts in one view
- Tidy Home HVAC: the install side of heating and cooling
- Rebate calculator: estimate your stack for your postcode
- Tidy FAQ: everything else you might want to ask
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