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Victorian Government VEU Program Review and What It Means for Your Business in 2026

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The Victorian Government has released a February update on its strategic review of the Victorian Energy Upgrades (VEUVictorian Energy Upgrades is a Victorian government energy efficiency program that gives every Victorian household and business the opportunity to receive rebates or discounts on energy saving products.) program. The review proposes a series of reforms aimed at strengthening the scheme’s long-term direction, improving flexibility, supporting electrification, and reducing administrative burden.

While further detail is still to come, the announcement provides policy certainty and signals a continued commitment to the VEU as a central mechanism for achieving Victoria’s emissions reduction and energy affordability targets.

At this stage, it is largely business as usual, but stakeholders should monitor the upcoming 2028–2030 target-setting process closely.

What Has Been Announced

The Government is proposing to:

· Retain the greenhouse gas emissions metric, while adding new objectives to support:

Industry has welcomed the announcement, noting that it establishes a more strategic, long-term direction for the scheme.

Who Is Likely Affected

The review impacts multiple stakeholder groups:

1. Accredited Providers & Installers

2. Energy Retailers (Obligated Parties)

3. Businesses & Commercial Property Owners

4. Residential Consumers

How This May Affect Your Business

At this stage, the review provides policy certainty rather than immediate operational change.

Short-Term (Now–2027)

Medium-Term (2028–2030 Targets)

The upcoming target-setting process may:

Strengthened oversight could mean:

For compliant participants, this should reduce uncertainty rather than increase burden.

Should You Take Action? For most, it’s business as usual. There is no immediate requirement to change compliance processes or project planning.

However, Business Should:

For accredited providers and retailers, early engagement in consultation processes may be beneficial.

Strategic Implications

This review signals that:

Overall Position

The announcement is broadly positive for the energy savingsElectricity or gas savings or both. industry and participants in the VEU program. It provides greater policy certainty and signals expanded opportunities, particularly in electrification and affordability. There is no immediate action required for most businesses. The key milestone to watch is the 2028–2030 target setting process which we will update as they roll out. If you want to discuss this further please get in touch below.

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What did the Victorian Government announce in February 2026 regarding the VEU program?

The Victorian Government released a February 2026 update on its strategic review of the Victorian Energy Upgrades (VEU) program, proposing reforms aimed at strengthening the scheme's long-term direction, improving flexibility, supporting electrification, and reducing administrative burden.

What new objectives is the Victorian Government proposing to add to the VEU program's metrics?

The Government is proposing to retain the greenhouse gas emissions metric while adding new objectives to support equity, energy affordability, electrification, and flexible demand.

What other reforms are being proposed under the VEU program review?

The proposed reforms include streamlining the introduction of new activities as technologies evolve, increasing flexibility for retailers in meeting targets, improving transparency of discounts for consumers, strengthening regulator oversight and clarifying participant responsibilities, and reducing red tape through administrative efficiencies.

Do businesses need to take immediate action in response to this VEU review announcement?

No, at this stage it is largely business as usual. There is no immediate requirement to change compliance processes or project planning, no immediate compliance changes have been announced, existing VEU activities and obligations remain in place, and projects can proceed under current settings with no changes to current targets.

What should businesses monitor going forward related to the VEU program?

Stakeholders should monitor the upcoming 2028–2030 target-setting process closely, as it may increase VEU targets. Businesses should also continue planning energy efficiency and electrification projects, consider forward planning electrification projects aligned with future VEU incentives, and stay alert for consultation papers or draft regulations outlining implementation details.

How might Accredited Providers and Installers be affected by the VEU program review?

Accredited Providers and Installers may benefit from streamlined processes and reduced administrative burden, could see faster introduction of new eligible technologies (particularly electrification measures), and should prepare for potential compliance refinements as regulator oversight is strengthened.

How might Energy Retailers (Obligated Parties) be affected by the VEU program review?

Energy Retailers may see increased flexibility in meeting targets that could improve cost management, and greater clarity on responsibilities that may reduce compliance risk over time.

How might businesses and commercial property owners be affected by the VEU program review?

Businesses and commercial property owners may see a potential expansion of electrification and energy efficiency activities, continued access to VEU discounts for upgrades, and a possible increased focus on energy affordability and flexible demand measures.

How might residential consumers be affected by the VEU program review?

Residential consumers may benefit from improved transparency of discounts and continued support for energy upgrades.

What is the overall strategic implication of this VEU program review?

The review signals that the VEU will remain a cornerstone of Victoria's decarbonisation strategy, electrification will become increasingly central, the Government aims for a more stable long-term policy framework, and administrative simplification may reduce compliance friction over time. Importantly, this is described as a strengthening and modernisation of the scheme rather than a contraction.

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