Are You Eligible for the 2025 Victorian Air Conditioning Discount?

With summer just around the corner and temperatures beginning to heat up, it’s the perfect time to think about your air conditioner. You may already want to turn it on but, you’re worried about seeing a sudden increase to your energy bill.

This is a common concern in properties with outdated air conditioners. The good news is that you can receive a discount from the Victorian government when you switch to an energy-efficient air conditioner.

If you’re eligible, and live or operate a business in Victoria, you almost certainly are indeed eligible.This means you’ll receive a discount of between $210 and $8,400 when you replace your current air conditioning unit with a more energy-efficient model. If you don’t yet have an air conditioner, you can still receive a discount. Homes are entitled to a discount of up to $700, and businesses to a discount of up to $2,500.

Why is the Victorian Government Offering this Discount?

The Victorian government is committed to offering a discount on new air conditioners because they’re committed to reducing greenhouse gas emissions in Australia. They also want to help homeowners, renters, and businesses reduce their energy bills. The aim of the initiative is a sustainable future where people can be comfortable and productive at home and at work.

How Does the Air Conditioning Discount Work in Victoria?

The air conditioning discount in Victoria is part of the larger Victorian Energy Upgrades (VEU) program. It allows residents to receive a reduced price when they purchase and install an energy-efficient air conditioning unit. Eligibility, discount amount, and a variety of benefits all play a part in Victoria’s aircon discount.

Who is Eligible for an Air Con Discount?

Anyone who lives or operates a business in Victoria is eligible for the air con discount in 2025. This includes renters, although the government does recommend that tenants work with their landlords to make decisions about home upgrades like this. It’s important to be aware that there are limits as to how you may use the discount.

• The air conditioner you choose must be VEU approved (which will mean it is high efficiency) and capable of heating as well as cooling. 
• Many ducted and non-ducted reverse-cycle air conditioners (RCACs) meet these criteria. 
• You’ll also need to receive the installation from an accredited professional and apply for the discount beforehand.

What Kind of Discount Can You Expect?

The exact discount you can expect will depend on your current system as well as the type and size of air conditioner you install. The largest discounts available are for installed ducted RCACs, but efficient room RCACs also come with significant discounts of up to $2,250 for homes and up to $1,750 for businesses.

Remember, you can check the the Victorian Energy Upgrades website for a better idea of what kind of discount you qualify for.

Benefits of the VEU Air Con Program

Spending less on the purchase price of an air con system is a major benefit of the program, but the benefits don’t end there. Another key advantage is the cost savings over time. You’ll notice that your energy bills are immediately lower, which should mean the upgrade soon pays for itself.

You’ll also be reducing the environmental impact at the same time. These two factors should mean you feel less hesitant to turn on your air conditioner on hot days, which will mean your home is more comfortable for family members. The same can be said for your business, as this will make your office spaces more welcoming to employees as well as customers.

Receiving the Air Con Discount in 2025

The Victorian government has made receiving the air con discount in 2025 as easy as possible. It involves no paperwork on your part. As long as you choose an accredited provider and an approved air conditioner, you’ll receive the discount. To ensure this is the case, there are just a 3 simple things you need to do.

Step 1: Research What Air Conditioner You’d Like

Have an idea of what kind of model you’d like to install. Bear in mind, you don’t need to come to a final decision yet. The installer will be able to give all the advice you need.

Step 2: Find Out If You’re Eligible

Submit your details to an accredited provider to find out if you’re eligible for the discount. Contact one who serves your  within Victoria. Efficient Energy Group operates throughout Victoria, and our staff are knowledgeable about different eligibility criteria.

Step 3: Schedule the Installation

Once the provider receives confirmation of your eligibility, it’ll be time to finalise your decision about what model you want so that you can schedule the installation. You don’t need to do anything on your side, because the experts will take care of everything.

How to Choose the Right Air Conditioner

To make the most of the program, it’s crucial to choose the right air conditioner. This involves considering a few factors.

like the type of air conditioner, the size, and the provider. We’ll cover each of these more in-depth below, but you can also contact us for more tailored advice. 

Type of Air Conditioner

There are three main types of RCACs:

• Single-split air conditioners consist of an outdoor unit connected to an indoor unit. These are ideal for cooling a single room in your property.
• Multi-split air conditioners use an outdoor unit connected to several indoor units. This setup makes them suitable for cooling multiple rooms or even the entire building.
• Ducted air conditioners have just an outdoor unit, which connects to different rooms and areas in the home through ducts and vents. This is another option for cooling an entire building.

Size

It’s important to choose an air conditioner that will be large enough to meet your cooling needs, while not being too large that you waste money on the purchase and operating costs.

To pick the right size, consider what rooms you want to cool. This may come down to what rooms you use most often. Alternatively, you may like to think about which areas are prone to heating up in the summer.

In a home, you’ll likely want to cover your living room, lounges, and any open-plan spaces. It could also help to consider what areas of the building are currently climate controlled, and whether you’re happy with the arrangement.

The Victorian government has these size recommendations for single- and multi-split models:

• Cooling Capacity	Room Size	Typical Room Type
  2.5 kW – 3 kW	Up to 20 m²	Bedroom or study
  3 kW – 5 kW	21 m² – 40 m²	Bedroom with en suite or small lounge
  5 kW – 8 kW	41 m² – 60 m²	Lounge or large kitchen
  More than 8 kW	Greater than 60 m²	Open-plan areas or large lounges

For a ducted system, the government recommendations are between 1.1 kW and 1.4 kW for every 10 m2.

Where Can You Get More Info on the Victoria Aircon Discount?

For more information on the Victoria aircon discount, check out this factsheet. The Victorian government has prepared this sheet to help consumers find the right RCAC for their needs.

Looking to Completely Electrify Your Home in Victoria?

Efficient Energy Group is your one-stop supplier and installer! We can help you upgrade your gas or electric hot water system, thanks to huge incentives available right now. Not only can you upgrade your air conditioning, but you can also switch to a more energy-efficient heat pump hot water system.

Take advantage of the hot water rebates in Victoria and make the switch today. For more information, check out our Heat Pump Rebate Victoria page

Wrapping Up

There is a lot to consider when choosing the right air conditioner for your home or business. In addition to the type, brand, and model of the unit, you’ll need to make sure you have the appropriate size to maximise efficiency and make the most of your discount.

Since you’ll need to work with an accredited provider to receive the installation anyway, it makes sense to involve the installer from the start. The experts at Efficient Energy Group will support you every step of the way by advising you on the best air conditioner for your needs. We’ll also handle the paperwork for your VEU discount and complete a high-quality installation. Get started now.