If you are currently living in Victoria and you’ve been thinking about upgrading your air conditioner, 2026 might just be your moment.
Now, you might be thinking, why!
Well, with recent shifts in policy, rebate rules, and program details under the Victorian Energy Upgrades (VEU) framework, a lot of things are changing, offering you numerous benefits.
Therefore, in this blog, we’ll walk you through:
- The key changes and updates for the Aircon rebate 2026 Victoria
- What’s been added, removed, or tweaked
- A step‑by‑step application process under new rules
- What you should act on now if you are planning to upgrade soon
- Some common FAQs to clear up your usual doubts
By the end of this blog, you should feel confident navigating the rebate landscape in Victoria and know exactly how to secure the best deal out of your investment. So, let’s get started!
In this blog post:
- What Is the VEU Aircon Rebate? | Things You Should Know
- What’s New for 2026: Major VEU & Aircon Rebate Changes
- Which Air Conditioner Should You Buy?
- Navigating the New 2026 Aircon Rebate Application Process in VIC
- Before You Apply: Tips for a Smooth 2026 Rebate Application with Cyanergy
- Frequently Asked Questions
What Is the VEU Aircon Rebate? | Things You Should Know
Before we dive into what’s new in the 2026 aircon rebate, here’s a short glimpse of what the VEU program means.
The VEU (Victorian Energy Upgrades) program offers discounts or rebates on energy-efficient appliances, such as heating and cooling.
This Government initiative offers incentives for Victorian homeowners to replace their ducted gas heating systems with a Multi-head Split System or a Ducted Reverse Cycle Air Conditioner.
However, the main goal behind this initiative is to transition away from harmful fossil fuels for heating and cooling systems. This reduces greenhouse gas emissions and lowers power bills, resulting in significant cost savings.
In this scheme, eligible installations generate VEECs (Victorian Energy Efficiency Certificates), which can be traded or sold to offset installation costs.
The rebate is typically applied as an upfront discount through your installer, but make sure to work only with accredited installers.
What’s New for 2026: Major VEU & Aircon Rebate Changes
According to Government data, 2026 will bring some important changes in the Victorian Energy Upgrades.
These energy upgrades are expected to benefit the homeowners and commercial property holders by saving more power and making their properties more sustainable.
So, if you wanna know the updates, let’s explore further!
The Program’s Lifetime Is Extended
One of the most significant updates is that the VEU program’s timeline has been extended significantly. Under the Victorian Energy Efficiency Target Amendment Bill, the target period is now stretched to 2045 from 2030.
Therefore, if you’re planning big electrification or retrofits, you now have long‑term certainty that the rebate framework is still available.
Legislative & Rule Changes Begin from Mid‑2025
In Australia, a range of new rules and updates are being introduced from mid-2025, which will affect how the 2026 programs operate. Here are some new rules:
- From 21 May 2025, the deadline to create VEECs has been removed, which was previously supposed to end on 31st of January.
- According to changes expected from 1 July 2025, if any participants provide false information or don’t follow the rules, new penalties can be applied directly to them.
- There will be stricter accountability requirements for program participants.
- The ESC has updated its guidance documents and rules for the registry. These include:
- Clearer rules around co-payments and pricing records
- Updated warranty requirements
- Changes to how information is recorded in the registry
- In July 2025, updates to heat pump and cooling eligibility and clarifications for commercial or industrial heat pump water heater rules were released.
Stronger Consumer Protection, Warranty, and Documentation Rules
Besides extending lifetimes, the VEU 2026 changes also emphasize stronger consumer safeguards. For example:
Effective from 31 March 2025, all applicable water heating, space heating, and cooling products installed under the Victorian Energy Upgrades (VEU) program must include a five-year warranty against defects from the date of installation, purchase, or supply.
They updated their activity guides to reflect changes to invoice and payment requirements, along with minor updates, aligning with recent VEU Registry changes and guidance.
Rebate Amounts & Incentives Are Being Rebalanced
Even though the rebate amount and incentives for 2026 aren’t fixed yet, this rebate structure may shift in 2026 as the Australian government is increasingly favouring reverse-cycle and heat pump technologies over gas systems.
The discounted amounts for heating and cooling are still substantial.
For example, by switching your old ducted gas heater for a multi-head split system or ducted reverse cycle air conditioner, you can claim up to $7,200 with the Victorian Government rebate.
However, Cyanergy offers competitive rates under the VEU rebate program. Here’s the breakdown:
✔ VRF Multi-Head Split System price starts from $1,999 (fully installed)
✔ A 3 Head Multi Split Aircon price starts from $2,199
✔ A 4 Head Multi Split Aircon price starting from $2,699
✔ Ducted Reverse Cycle Air Conditioner price starts from $7,499 inc GST
Removed or Restricted Incentives & Stricter Eligibility Boundaries
- Certain products or configurations that were loosely eligible may be dropped if they don’t meet new performance thresholds or registry criteria.
- Rebates for switching from gas to electric may now come with stricter conditions, such as meeting energy efficiency standards or fully removing the old gas system.
- Any systems not on the VEU Register or installed by non-accredited providers will be disqualified.
- Some rebate programs are starting to introduce minimum co-payments or stricter eligibility rules.
For instance, from 1 February 2025, minimum co‑payments of $200 were introduced for single non-ducted systems smaller than 10 kW, and $1000 for ducted or multi-head systems.
Which Air Conditioner Should You Buy?
Is a split system or ducted AC better for your home?
Well, it’s a common dilemma for homeowners and businessmen looking to stay cool or warm year-round while keeping energy bills low.
So, if you are one of them, don’t stress! We’re here to help you figure it out based on your property’s layout so that you can get the best value out of your system.
Multi-Split System
Allows you to run multiple indoor units from a single outdoor unit. They are ideal for medium- to large-sized homes where different rooms require their own climate control.
Ducted Reverse Cycle Air Conditioning
These type of aircons provides whole-house heating and cooling through a network of ducts. They offer seamless comfort across all rooms, but come with a higher initial investment.
Reverse Cycle Split System
A great all-in-one solution for both heating and cooling. Best suited for individual rooms or small spaces where targeted comfort is needed.
High-Efficiency Air Conditioners
These models may cost more upfront but deliver significant savings over time through reduced energy bills and lower greenhouse gas emissions.
Navigating the New 2026 Aircon Rebate Application Process in VIC
Previously, applicants had to meet specific eligibility criteria to qualify for the Aircon Rebate.
These included income thresholds, approved product lists, and purchase deadlines. However, for 2026, several important changes have been introduced to make the program more accessible, energy-efficient, and aligned with environmental goals.
These updates affect who can apply, which air conditioner models qualify, and how the application process works.
So, if you’re planning to purchase a new air conditioner and want to take advantage of the rebate, it’s essential to understand the new rules.
Below is a step-by-step guide to help you with the 2026 Aircon Rebate under the updated program:
Step 1: Confirm Your Eligibility
- You must live or operate a business in Victoria.
- Property must be at least 2 years old if replacing an existing system.
- Check if any new low-income or rental property conditions apply to you.
Step 2: Choose a Rebate-Approved Air Conditioner
- Visit the VEU Product Register to find eligible models.
- Check that you haven’t recently claimed a similar VEU upgrade.
- Choose a reverse-cycle air conditioner with a 5+ year warranty.
- Ensure the quote includes the rebate or discount up front, not later.
Step 3: Get a Quote from a VEU-Accredited Installer
- Only work completed by an approved provider qualifies under this rebate.
- The installer must be VEU‑accredited and seek at least 2–3 quotes from providers.
- Ensure you are okay with any minimum warranty, co‑payment, or performance-related requirements.
Step 4: Look for Additional Upgrades
- Ask if you can combine this with other eligible upgrades, such as solar hot water, insulation, and an energy audit.
- You may receive bonus rebates for bundling multiple energy-efficient upgrades.
Step 5: Schedule the Installation
- Ensure the installer submits all paperwork to the VEU program on your behalf.
- You should receive documentation confirming the value of the rebate applied.
Step 6: Pay Your Co-payment
- Make your required contribution of at least $200 or $1,000, depending on the unit.
- Keep your invoice and receipt for your records.
Step 7: Receive Confirmation and Final Rebate Approval
- Your installer or provider will issue confirmation that the rebate has been processed.
- You don’t need to apply directly; the rebate is deducted from your total cost.
Before You Apply: Tips for a Smooth 2026 Rebate Application with Cyanergy
If you plan to install an air conditioning system on your property, it’s undoubtedly a smart move to act as early as possible. Reason?
The rebate amounts can fluctuate throughout the year depending on the market value of VEECs (Victorian Energy Efficiency Certificates).
Also, before making a purchase, be sure to double-check that your chosen air conditioner model is still listed as eligible, since the official product register is updated regularly and some units may be added or removed.
Lastly, keep all documentation related to your installation and rebate, especially if you’re applying for bundled upgrades or stacking multiple rebates.
Remember, having proper records will make the approval process smoother and protect you in the event of an audit.
However, applying for the 2026 aircon rebate doesn’t have to be complicated, especially when you’re working with a trusted provider like Cyanergy.
With years of experience, Cyanergy ensures you’re guided through every step with clarity and confidence.
With Cyanergy handling the paperwork and installation through accredited professionals, you can rest assured your application is in good hands from start to finish.
For more information about the rebate or incentive program, keep your eyes on Cyanergy. Our expert team will make everything easy to understand, helping you with a smooth installation.
Frequently Asked Questions
- What VEU program for the air conditioner?
- How much rebate can I get for air conditioning?
- Will you decommission my old ducted gas heating system for free?
- Can I get a rebate if I live in a rental property?
- Do I need to apply for the rebate myself?
The Victorian Energy Upgrades (VEU) program is a Victorian Government initiative offering incentives for homeowners to replace their ducted gas heating systems with a Multi-head Split System or a Ducted Reverse Cycle Air Conditioner. This enables energy savings and reduces emissions.
The Victorian Energy Upgrades (VEU) program offers rebates of up to $7,200 when you replace your existing gas heating system. This subsidy significantly helps to reduce the overall costs of installing a new system.
Yes, if you are participating in the VEU rebate program, the decommissioning or recycling of the existing system is included as part of the service package.
Our expert team handles everything before installing the new system, making the process hassle-free for you.
Yes, renters can benefit from the VEU program, but the property owner (landlord) must approve and coordinate the upgrade. If you’re a tenant, speak to your landlord about upgrading to a reverse cycle system through an accredited provider like Cyanergy.
No. When you go through an accredited provider like Cyanergy, they handle the entire rebate application process for you. The rebate is applied as a discount upfront, so you pay less at the time of installation, no waiting for reimbursement.
