Victorian Government Split System AC Rebate

Split system AC rebate by Victoria government

Ever-rising energy costs and extreme weather events (such as Victorian bushfires and Western Australian Heatwaves) are causing energy bills of Australian households to soar through the roof.

To mitigate its impact on the household budget, Victorian government is offering rebates on replacement of old (and inefficient):

  • Ducted gas heater
  • Non-ducted gas heater
  • Electric resistance heater
  • Hard-wired electric room heater
  • Gas/LPG room heater
  • Central Resistance/Slab heater
  • Or wood fired room heater

with a new highly energy-efficient heat pump based space heating and cooling systems. Rebates are also being offered on installing a new space heating and cooling system.

Air-conditioners (heating and cooling) rebates in Victoria

The heating and cooling system (aka reverse cycle air-conditioners or heat pump powered air-conditioner) rebates/discounts are available under activity 6 of Victorian Energy Upgrades (Heating & Cooling Rebates) Program.  To be eligible for the rebates, you must replace (or install a new one) an old air-con with an air-conditioner that is listed in the VEU program registry.

Under the program, three types of air conditioning systems are available:

  1. Single-split units
  2. Multi-split units
  3. VRF (Variable Refrigerant Flow) units

What is rebate amount?

It ranges from $1,500 to $9,000, depending upon the following factors:

  • Air-conditioner brand/model
  • Number of indoor units installed
  • Energy certificate price at the time of installation
  • Your home location
  • Installation cost
  • Rebate application processing & administrative costs (if any)

Who are eligible for split system aircon rebates?

All Victorian households are eligible to apply for the heating and cooling rebates under the VEU program. Tenants are also eligible for the heating and cooling rebates. The renters need to work out the key aspects — like installation cost, schedule, and documentation— with their homeowners.  Here are the additional conditions for Victoria aircon rebates:

  • Applicant’s should be owner of the home for more than 2 years
  • Existing system must be connected to electric circuit of the building

How to get the air-con upgrade?

Getting an air-conditioner upgrade under the VEU program is straightforward. Simply select a right-sized reverse air-conditioning unit from the VEU program registry and engage an accredited installer. The installer will quote you a discount on the product you selected. And if you agree to the offer, the installer will schedule the installation of the reverse/heat pump based air-conditioning system and carry out the installation on the scheduled date and time.

Products We Offer Under VIC Heating & Cooling Rebate Program

Midea Single Split & Multi Split Air-conditioners


  • Product type: Ducted and non-ducted
  • Mount: Wall hung & under ceiling
  • GEMS Class: Class 8-20
  • Heating Capacity: 2.25 to 21 kW
  • Cooling Capacity: 2 to 15 kW
  • COP: 3.5 to 5.5
Midea single-split non-ducted air-conditioner

Smart User Split System Air Conditioner


  • Product type: Non-ducted
  • Mount: Wall hung
  • GEMS Class: Class 20
  • Heating Capacity: 19 kW
  • Cooling Capacity: 15.5 kW
  • COP: 5.2
Smart User Split System Air Conditioner

Emerald Planet Single Split Air-conditioning Systems


  • Product type: Non-ducted
  • Mount: Wall hung
  • GEMS Class: Class 8 & 9
  • Heating Capacity: 3.2-7.5 kW
  • Cooling Capacity: 2.5 to 7.2 kW
  • COP: 3.9 to 4.7
Emerald Planet Single Split Non-Ducted AC system

Carrier 2.75 & 7.6 kW Single Split AC System Systems


  • Product type: Non-ducted
  • Mount: Wall hung
  • GEMS Class: Class 8 & 9
  • Heating Capacity: 2.75 & 7.6 kW
  • Cooling Capacity: 2.6 & 7 kW
  • COP: 5 & 3.6
Carrier 7kW Split System AC for Victoria rebate program

Why do we recommend the air-conditioner upgrade?

Replacing the old electric/gas/wood-fired heating system with a new heating and cooling system brings a host of benefits to homeowners, such as:

  1. Regulation of indoor temperature for year-round comfort
  2. Reduce your energy bills on heating and cooling by 50-70%
  3. Reduced carbon emissions
  4. Twin functionality (a single heat pump works for dual function of heating/cooling your home/workplace)
  5. Government rebates
  6. Social and health benefits
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Types of reverse cycle air conditioners offered under VEU Program

Types of reverse cycle ACs installed under Victoria rebate program

Four types of air conditioners are being offered under heating and cooling rebate program:

  1. Single split:  It has a single outdoor heat exchanger unit connected to a single indoor unit. These air-conditioning systems are suitable for heating/cooling a single room or space.
  2. Multi-split: These systems have one outdoor heat exchanger unit connected to multiple indoor (which can be multiple floor-standing units and ceiling units) units.  Such systems are space and cost-efficient, as it requires only one outdoor unit to heat different kinds of spaces.  Moreover, with a multi-split air conditioning system, temperature zones can be created to serve different air-conditioning needs of different spaces within your home.
  3. Ducted:  Unlike in multi-split systems where multiple indoor units are visible (on wall/ceiling or floor), in ducted air-conditioning systems, the single indoor fan coil unit is employed. It is not visible as it is installed in the ceiling cavity. The indoor unit delivers heated/cooled air to different rooms/spaces of your home through ducts and ceiling-mounted diffuser. The circulation of air (and its temperature) can be controlled through a wall-mounted zone controller or a phone application. All spaces are air-conditioned uniformly in a ducted AC system.
  4. Ductless: Indoor units are installed in different spaces.  Users have the option to set a different temperature set point and the spaces are heated/cooled differently as per the user preferences.

Things to consider before getting air-con upgrade

There are about 900 air-conditioning units listed in VEU heating and cooling rebate program product registry. Before zeroing in on a unit, consider the following factors:

  1. Air conditioning unit type (single split, multi-split or ducted).  Consider the unit type that can meet your air conditioning needs.
  2. Size: Sizing is crucial. The air-conditioners are sized in KW (kilowatts).  An oversized unit cools poorly and wastes energy, while an undersized one won’t cool effectively.
  3. Heating and cooling operating range.
  4. Efficiency: Energy-efficiency of an air conditioner is measured in COP (Coefficient of Performance) and EER (Energy Efficiency Ratio). The higher the COP and EER numbers are, the higher energy-efficiency the unit will deliver.
  5. Noise level.
  6. Warranty
  7. Environmental Impact: Look for an air-conditioning unit that uses low GWP (Global Warming Potential) refrigerant.
  8. Rebate amount.

How to select a right sized air conditioner?

To select a right-sized heating and cooling system from the 900 odd air-conditioning units listed in VEU product registry, you need to do a thorough research.

There are several factors that influence what size air-conditioning system would meet your heating and cooling needs. The most significant factors are:

  • Room space: Large spaces require bigger air-conditioning units.
  • Climate: Some areas (like Mildura, Swan Hill, Buloke, Hindmarsh and Moria) fall under climate zone 4.  Regions under climate zone 4 have hotter and drier summer and cooler winters. Such places require larger air-conditioning systems.
  • Number of people: Larger households require larger air conditioning units as more people generate more heat.
  • Ceiling height: Spaces with higher ceiling require more powerful aircon units to maintain the set temperature.
  • Insulation: A well-insulated space can be air-conditioned by a smaller unit.

Apart from these factors, there are several others that will determine the size-suitability of the dual use (heating + cooling) systems for your household or workplace.


We recommend consulting a licensed and experienced accredited installer to know the size-suitability of the aircon unit.

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