Renting in Victoria often comes with its share of compromises, especially when it comes to heating and cooling.
In Victoria, most households face high bills and reduced comfort because their old gas heaters kick in during winter or inefficient split-system air conditioners struggle to keep homes cool throughout summer.
Fortunately, there’s a golden opportunity many residents don’t know about: the Victorian Energy Upgrades (VEU) Program. This government-backed initiative offers meaningful rebates and discounts for efficient heating and cooling and other home upgrades.
But the question is: Do rental properties qualify for the VEU rebates?
The answer is yes, but there are a few important things tenants need to know.
Therefore, in this article, we’ll guide you through how tenants in VIC can benefit from VEU air con Upgrade, how the landlord consent process works, and share some real-world examples that you can follow to get started.
So, let’s begin!
In this blog post:
- Understanding VEU Air Con Rebates: Can Renters Benefit?
- Do Tenants Really Need Landlord Consent? | The Approval Process Explained!
- Pro Tips Every Tenant Should Know During the Rental Process
- How are Costs and Incentives Shared?
- Sharing Benefits Between Landlord and Tenants: A Collaborative Approach
- Ready to Upgrade Your Rental Home's Efficiency? Cyanergy Make it Easy!
Understanding VEU Air Con Rebates: Can Renters Benefit?
As mentioned earlier, the Victorian government has introduced the Victorian Energy Upgrades (VEU) program to help households and businesses reduce energy costs and lower greenhouse gas emissions.
Under this scheme, accredited providers offer rebates or discounts on the installation of energy-efficient products, including reverse-cycle air conditioners that replace older, inefficient systems in your home.
How Does the VEU Rebate Program Work?
The government issues “VEU certificates” for each upgrade, which energy companies then buy to meet their emissions-reduction targets. This trading system allows households to receive up-front discounts.
Significantly, tenants can also benefit from the rebate if they have their landlord’s approval for installing air conditioners.
In rental homes, this upgrade not only improves comfort and reduces electricity bills but also helps landlords meet Victoria’s minimum energy-efficiency standards for rental properties.
Eager to know more?
Here is how renters can benefit through VEU air con Upgrades:
Lower energy bills
- Upgrading to a high-efficiency reverse-cycle air conditioner under the VEU scheme can significantly reduce your heating and cooling costs.
For example, recent data represents estimated savings of $120 to $1,100 per year, depending on the size or type of upgrade.
- Switching to efficient heating and cooling systems helps reduce ongoing operational costs.
- In your home, better temperature control means you’re less reliant on inefficient systems, like gas-burning heaters or fans.
Improved comfort and living conditions
- In a rental property, installing a modern, energy-efficient cooling system means better indoor comfort.
- This VEU air con upgrade can be especially relevant in rentals where older systems may struggle or be inefficient.
Eligibility and access permission as a tenant
- Tenants can access upgrades under the VEU program, though you’ll need to coordinate with the landowner.
- The best part is that there are no income thresholds to meet. The program is broadly available to Victorian households and rental properties.
- The discount is applied via an accredited provider, so the cost to the tenant (or the landlord/tenant jointly) is reduced upfront.
Air Con Upgrade adds value to the rental property
- Even though this VEU rebate directly benefits the property owner or landlord in terms of value appeal, tenants also benefit by renting a property with better systems that likely have fewer repairs or maintenance issues.
- Upgrades reduce maintenance tasks for tenants, as older systems are more likely to break, causing discomfort or disputes over repairs.
Do Tenants Really Need Landlord Consent? | The Approval Process Explained!
If you are living in a rental property in VIC and thinking about upgrading your air conditioning system through the VEU program, you might be wondering — do I need my landlord’s approval before installing the new unit?
Well, since you don’t own the property you’re renting, one of the first steps as a tenant is to talk with your landlord and seek permission.
It’s important to check in with your landlord before making any upgrades or installations. It helps avoid common mistakes that disqualify you from a rebate, ensures compliance with your lease, and keeps everything running smoothly.
Here’s how the landlord approval process usually works and what you should do to get landlord approval fast:
- Initiate the conversation
- Check eligibility together: here’s what to check!
- Confirm the property has existed for more than 2 years.
- Verify whether the existing system is eligible for replacement, e.g. an old gas heater or a low-efficiency AC unit.
- Not all the brands and models are eligible, so check the public registry to find a suitable one.
- Make sure the upgrade has not been claimed for that property before. The program won’t allow duplicate claims.
- Select a VEU-approved product and an accredited installer, such as Cyanergy.
- The landlord gives consent
- Transparent discussion on cost & contract
- Installation & rebate claim
- Post-installation: Allocation of benefits
As a tenant, you can raise the possibility: “Would you be willing to upgrade the heating/cooling system under the VEU rebate scheme?” You can emphasis the long-term benefits to the landowner, such as lower bills, greater comfort, and improved property value.
Your landlord or rental provider must agree to the upgrade. Many installers note that rental properties can access the scheme only when the owner provides landlord approval.
Before installing a system, a contract with the installer will outline the rebate and installation details, including who pays upfront.
It’s wise for both the landlord and tenant to review it.
The installer handles the application under the VEU scheme, ensuring that the discount/rebate is applied. The landlord will likely be the applicant (since they’re the property owner), but tenants can initiate or support the application.
After installation, the improved system delivers reduced energy use. The agreement between landlord and tenant should clarify how those savings are handled.
Pro Tips Every Tenant Should Know During the Rental Process
To get the most out of this opportunity, here are some best practices especially tailored for tenants:
- Get everything in writing, keep records, and retain a copy of the document for both the landlord and you.
- Request an estimate that clearly outlines the rebate process or discount amount, allowing you to see the actual cost.
- Ask the installer to clarify the warranty, ongoing maintenance, and any other relevant details.
- Ensure the landlord agrees to your shared arrangement, including the cost, benefits, and timeframe, before committing to it.
How are Costs and Incentives Shared?
One of the main questions is: when a tenant benefits, who pays for what? And how incentives are distributed?
Well, under the VEU scheme, here’s how it typically works:
Incentives offered
- According to the Victorian government’s heating and cooling factsheet, installing an efficient reverse-cycle air conditioner can result in significant savings. For example:
- Up to about $840 when replacing a hard-wired electric resistance room heater ranging from 3 kW-9 kW in a non-ducted setting.
- Up to $2,520 for replacing a ducted gas heater and installing 4 split systems (1×8 kW + 3×3 kW).
- Up to about $840 when replacing a hard-wired electric resistance room heater ranging from 3 kW-9 kW in a non-ducted setting.
- The program also notes that for rental properties, benefits apply: the regulatory impact assessment states:
“The VEU program is available to renters. The program encourages collaboration between rental providers and tenants to work together on upgrades.”
So, who bears the cost?
When discussing cost-sharing for installing an air conditioning system in a rental property, the tenant may offer to contribute by paying higher rent, extending the lease term, or sharing the energy savings.
This helps both the landlord and tenants to secure the upgrade quickly.
However, in most cases, the landlord pays the bulk of the cost or arranges for the installer to claim the rebate or discount, reducing the upfront cost.
Then, the installer essentially offsets your rebate via VEECs (Victorian Energy Efficiency Certificates) and passes the benefit on to the customer.
The rebate is usually applied up front, reducing the installation cost, and the amount depends on the type of system you remove and the system you install.
Sharing Benefits Between Landlord and Tenants: A Collaborative Approach
Upgrading the air conditioner or installing a new unit under the VEU rebate program can benefit both tenants and landlords. While tenants benefit from lower power bills and greater comfort, landlords benefit from improved property value.
Let’s picture this:
Example Scenario
The tenant initiates the upgrade, and the landlord agrees. The installer’s quote shows the system costs $4,000, with a $2,500 rebate, so the net cost payable is $1,500.
- The tenant might offer to sign a 2-3-year lease extension, providing the landlord with stability in return for a share of the savings, such as lower power bills or a slight rent increase.
- Landlord receives a modern upgrade, a better energy rating, and reduced risk.
- Tenants enjoy comfort and lower bills, all while living in a rental.
However, even with a rebate, the property owner must meet the minimum customer contribution.
For instance, for a non-ducted reverse-cycle air conditioner under 10 kW, the minimum cost is $200 for a multi–split system and $1,000 for a ducted system.
So, remember! While rebates are generous, they don’t always cover everything.
Ready to Upgrade Your Rental Home's Efficiency? Cyanergy Make it Easy!
Whether it’s Victoria or NSW, more efficient rentals mean happier tenants and lower running costs. It’s a win-win for both. Don’t wait to make your property more efficient and affordable to run.
Let Cyanergy handle everything from rebates to installation so you can enjoy peace of mind and lasting value.
Start your upgrade journey today with us!
