How Victorian Businesses Can Get a Free Energy Upgrade in 2026
Introduction
Energy bills are one of the fastest-growing costs for Victorian small and medium businesses in 2026. Gas prices remain elevated, electricity tariffs have risen sharply since 2022, and most commercial premises are still running equipment that was installed a decade or more ago.
Here is the good news: the Victorian Government’s Victorian Energy Upgrades (VEU) program is still fully operational — and following a major legislative reform, it has now been extended all the way to 2045. That means Victorian businesses have more than two decades of government-backed incentives ahead of them to upgrade to energy-efficient technology, often at zero upfront cost.
Glow Green is an Accredited Person (AP) under the VEU program. In this guide, we break down exactly which upgrades are available to Victorian businesses right now, what has changed in 2026, and how to claim your upgrade with no paperwork headaches.
What Is the VEU Program and Why Does It Matter in 2026?
The Victorian Energy Upgrades (VEU) program is a State Government scheme that incentivises households and businesses to replace old, energy-hungry equipment with modern, efficient alternatives. It operates through a certificate trading system:
- You allow an Accredited Person (AP) like Glow Green to install energy-efficient equipment at your premises.
- The AP creates Victorian Energy Efficiency Certificates (VEECs) — one VEEC equals one tonne of greenhouse gas emissions reduced.
- The AP sells those VEECs to energy retailers, who are legally required to surrender a set number each year.
- The value of the VEECs is passed directly to you as an upfront discount on the upgrade — no rebate claim forms, no waiting.
What's New in 2026?
Three major legislative and regulatory changes have taken effect that every Victorian business owner should know about:
1. VEU Extended to 2045. The program has been legislatively extended from 2030 all the way to 2045, providing long-term certainty for businesses planning capital upgrades. This removes one of the biggest reasons businesses delayed — the fear the program would end before they could act.
2. New Fees for 2026–2027. Revised VEU program fees took effect from 1 January 2026, affecting certificate costs for accredited providers. Glow Green has absorbed these changes into our pricing model — the cost to you does not increase.
3. Strategic Review Underway (March–April 2026). A formal stakeholder consultation is taking place right now — March and April 2026 — with a Bill planned for Parliament in 2026. Proposed changes include renaming the Act, adding new equity and electrification objectives, and making VEEC targets more flexible and market-responsive. This is not a wind-down — it is a strengthening of the program.
VEU 2026 Regulatory Changes Timeline
Every Victorian Energy Upgrades (VEU) program change from mid-2025 through 2026 and beyond — sequenced by date, with plain-English impact notes for business owners.
- 31 January lodgement deadline for prior-year VEECs abolished
- Accredited providers can now lodge certificates on a more flexible schedule
- Reduces administrative pressure — stable discount pipeline for businesses
- Minimum $1,000 customer co-payment now required — no longer a $0 upgrade
- Storage tank must exceed 700 litres — targets genuine commercial-scale installations
- Hospitality, gyms, aged care, and accommodation still strongly eligible
- Glow Green itemises VEEC value and co-payment clearly in every quote
- VEU incentives for energy-efficient refrigerated display cabinets removed
- Full activity review underway — no reinstatement timeline confirmed
- Affects hospitality, food retail, and cold-chain operations
- Contact Glow Green for alternative upgrade pathways (motors, HVAC)
- New fee schedule for accredited providers and certificate lodgement from 1 January
- Fee changes absorbed by Glow Green — no additional cost passed to business owners
- Applies to all VEU activities lodged from this date onward
- Target drops sharply from 7.3 million in 2025 — a 40% reduction
- Smaller target = fewer certificates required = VEEC prices expected to soften
- Early movers in 2026 access higher discount values before prices fall
- Approximately 6 million VEECs still expected to be created, maintaining a surplus
- Minister for Energy raised the mandatory shortfall penalty to $100/VEEC
- Energy retailers are strongly incentivised to keep purchasing certificates
- Keeps the discount pipeline open for businesses — demand for VEECs remains robust
- Brand-new activity covering commercial and industrial solar PV systems
- Applies to systems over 100 kW — updated guides and forms now available from ESC
- Businesses may access VEU certificates in addition to standard STCs
- Residential solar remains under Solar Victoria (a separate program)
- ESC oversight now covers individual tradespeople, not just accredited providers
- Strengthens program integrity and consumer protection
- Verify both company AP status and individual installer authorisation before proceeding
- Glow Green's Certify platform ensures every job is audit-ready from day one
NOW OPEN
- Formal consultation open March–April 2026 via DEECA
- Bill planned for Parliament in 2026 to amend the Victorian Energy Efficiency Target Act 2007
- Proposed reforms: rename Act; add equity & electrification objectives; flexible VEEC targets
- No impact on current upgrades — existing program operates normally during review
- Post-2027 program design expected to be announced later this year
- Launching in 2026 — watch ESC website for formal start date
- VEEC funding for metering, sub-metering & real-time energy analytics installation
- Targets medium-to-large commercial and industrial buildings
- Helps businesses identify waste and quantify savings from other upgrade activities
- Revised activity guides and forms now published by the ESC
- Covers pumps, fans, compressors, and conveyors in industrial settings
- Strong ROI for manufacturing, cold storage, and food processing facilities
- Extension from 2030 confirmed in legislation — 15 additional years of incentives
- Removes the risk of "program ending before I act" — plan capital upgrades with confidence
- Annual VEEC targets will be set progressively; market remains active and funded
- The single most important change for long-term business energy planning
What Free Energy Upgrades Can Victorian Businesses Access?
The VEU program covers a wide range of commercial upgrade types. Below is the complete 2026 menu for non-residential premises — this is the ‘cluster hub’ section, with each upgrade type linking to a dedicated Glow Green service page.
2a. Commercial LED Lighting Upgrades
Lighting typically accounts for 25–40% of a commercial electricity bill. Replacing fluorescent tubes, halogens, high-bay fittings, and metal halide systems with modern LEDs is one of the highest-value, fastest-payback upgrades available.
Who qualifies: Offices, warehouses, retail stores, factories, car parks, aged care facilities, schools, and local councils (including street lighting). If your business has fluorescent or halogen fittings, you almost certainly qualify.
2b. Non-Building-Based Lighting
Outdoor lighting that is not attached to a building — including car park structures, outdoor sports facilities, signage arrays, and temporary or industrial lighting — is covered under a separate VEU activity.
2c. Commercial Heat Pump Hot Water (Activity 44 — Updated)
Hot water is the second-largest energy cost for many hospitality, gym, aged care, and accommodation businesses. Activity 44 under VEU covers commercial heat pump hot water systems — replacing electric resistance or gas storage water heaters with high-efficiency heat pumps.
Key 2026 update: Activity 44 was revised in July 2025. Systems must now have storage tanks exceeding 700 litres to qualify under the commercial pathway, targeting genuine commercial-scale installations rather than oversized residential units.
How Glow Green Delivers Your Upgrade —
End to End, Zero Paperwork
From eligibility check to certified installation, we handle every step. You simply sign once and enjoy lower energy bills. Here is exactly what happens.
-
Assess
We check your premises eligibility, confirm which VEU activities apply, and calculate your VEEC discount. No commitment required.
No Obligation -
Quote
You receive a written quote itemising the VEEC value, any co-payment, and full installation costs. Then sign one VEU consent form.
Full Transparency -
Install
Our accredited installers handle supply, installation, safety checks, and decommissioning of old equipment. One visit. Done.
Accredited Installers -
Certify
Your job is lodged through our Certify platform. VEECs are created in real time. Discount applied upfront — no rebate claim, ever.
Real-Time Compliance
Every job is ESC-compliant on lodgement. No corrections, no delays, no compliance surprises for your business.
Track your job from assessment to VEEC creation. Full visibility at every stage — no chasing emails.
You sign once. Glow Green handles all lodgement, documentation, decommissioning records, and regulatory submissions.
Ready to Start Your Upgrade?
VEEC prices are softening through 2026. Act now for the strongest discount.
What Does 'Free' Actually Mean?
The word ‘free’ in the context of VEU requires some honest explanation. Here is exactly what it means — and what it does not mean:
What it means: For many upgrade types — particularly LED lighting — the VEEC value is sufficient to cover the full cost of supply and installation. You pay nothing. The discount is applied at the point of sale, not as a rebate you claim later.
What it does not always mean: Some activities, particularly Activity 44 (commercial heat pump hot water), now carry a mandatory minimum co-payment of $1,000. This is a result of regulatory changes in July 2025 to ensure installations are genuinely commercial-scale. The total installed cost is still heavily discounted compared to the market rate — but it is not zero.
How the VEEC value is determined: VEEC values depend on the type of upgrade, the size of the installation, and the current market price of VEECs. In 2026, with the annual target set at 4.4 million VEECs (down from 7.3 million in 2025), VEEC prices are expected to soften over the course of the year. Businesses that secure upgrades earlier in 2026 stand to receive a more favourable discount than those who wait until the second half of the year.
The following table summarises every significant regulatory and program change Victorian businesses should be aware of heading into 2026:
All VEU Program Changes
Relevant to Businesses in 2026
Thirteen regulatory, legislative, and operational changes now in effect — and what each one means for your Victorian business.
| Change | What It Means for Your Business |
|---|---|
|
Update
VEU program extended to 2045 (legislation)
|
Long-term certainty — plan capital upgrades with confidence beyond 2030 |
|
New
New C&I Solar PV activity now live
|
Larger businesses (>100 kW) can access VEU certificates for solar installations |
|
Action
Activity 44 revised — $1,000 minimum co-pay required (from July 2025)
|
Commercial heat pumps require a customer contribution; no longer fully zero-cost |
|
Update
Activity 44 revised — 700L+ tank requirement
|
Targets genuine commercial installations; residential oversizing no longer qualifies |
|
Update
VEEC creation deadline removed (from May 2025)
|
More flexible certificate lodgement; reduces administrative pressure on providers |
|
Update
Shortfall penalty raised to $100 per VEEC
|
Energy retailers strongly incentivised to buy VEECs — discount pipeline remains robust |
|
Update
Revised program fees 2026/2027 (from 1 Jan 2026)
|
Updated VEEC pricing in effect; Glow Green has absorbed changes into our model |
|
Action
2026 target: 4.4M VEECs (down from 7.3M in 2025)
|
Smaller target may soften VEEC prices — act early in 2026 for best discount |
|
New
EMIS activity launching in 2026
|
New VEEC funding for sub-metering and energy analytics systems |
|
Suspended
Refrigerated cabinets activity suspended
|
No VEU incentives available for commercial refrigeration until activity review completes |
|
Integrity
ESC now oversees individual installers
|
Stronger program integrity; verify your provider's AP accreditation before proceeding |
|
Review
Strategic Review consultation: March–April 2026
|
Proposed reforms to equity, electrification, and flexible targets — no impact on current upgrades |
|
Scam Alert
Telemarketing and doorknocking banned under VEU
|
Any cold call offering VEU upgrades is a scam — report it to the ESC immediately |
Scam Warning — VEU Telemarketing Ban The VEU program has formally suspended all telemarketing. If you receive a cold call, door knock, or unsolicited SMS offering a free government energy upgrade, this is a scam. Report it to the ESC using the CNI number provided, or contact Glow Green at info@glowgreen.com.au.
Frequently Asked Questions
Everything Victorian businesses ask us about the VEU program, eligibility, costs, and how Glow Green works.
8 questions answered
-
The Short Answer: Yes, often
For many upgrade types, particularly LED lighting, the VEEC value is sufficient to cover the full cost of supply and installation.
For other upgrades such as commercial heat pump hot water (Activity 44), a minimum co-payment of $1,000 now applies following July 2025 regulatory changes. Glow Green will always confirm the exact cost breakdown in your quote before any work starts.
-
Solar Victoria primarily supports residential solar and battery installations and some small business solar through its rebate and loan programs.
The VEU program (administered by the ESC) covers a much broader range of commercial upgrade types — lighting, hot water, HVAC, motors, and now commercial-scale solar PV. If your business is considering solar over 100 kW, VEU is now the relevant program.
-
Typically one day
For most commercial premises, a lighting upgrade is completed in a single day. Larger warehouses or multi-site installations may take 2–3 days.
Glow Green coordinates installation scheduling to minimise disruption to your business operations.
-
Not always. Many VEU activities can be accessed by tenants with the property owner's written consent.
Glow Green can advise on the specific consent documentation required for your upgrade type when we assess your eligibility.
-
No ongoing obligations for you
No ongoing compliance obligations fall on the business owner after installation. Glow Green holds responsibility for lodging the VEECs and maintaining installation records.
You simply continue using the new, more efficient equipment and enjoy lower energy bills.
-
Check the ESC's public register of Accredited Persons at esc.vic.gov.au. Glow Green is listed as an AP under the VEU program.
From 2026, ESC enforcement has been extended to cover individual installers as well as APs — so always verify that both the company and the tradesperson completing your installation are authorised under the program.
-
Activity Suspended
Government incentives for energy-efficient refrigerated cabinets have been suspended pending a full activity review. There is currently no timeline for reinstatement.
Contact Glow Green to discuss whether any alternative upgrade activities — such as high-efficiency motors or HVAC — may apply to your cold chain operations in the interim.
-
Victorian Energy Efficiency Certificate
A VEEC is a tradeable certificate created by an Accredited Person each time an eligible energy upgrade is completed in Victoria. One VEEC = one tonne of greenhouse gas emissions reduced.
Energy retailers must purchase and surrender a set number of VEECs each year — this obligation is what creates the market that funds your upgrade discount.
Ready to Claim Your 2026 Business Energy Upgrade?
VEEC prices are expected to soften as 2026 progresses. Victorian businesses that move now will access the strongest available discounts before market conditions shift.
Glow Green is a fully accredited VEU Accredited Person (AP). We handle all paperwork, installation, and decommissioning at no extra cost to you. Over 100,000 upgrades completed. Real-time compliance through the Certify platform.
About the Author & Publisher
This article was produced by the Glow Green content team. Glow Green (trading name of Accurate Marketing Pty Ltd, ABN 18 606 614 911) is an Accredited Person (AP) under the Victorian Energy Upgrades (VEU) program, administered by the Essential Services Commission of Victoria. Glow Green is also an Accredited Certificate Provider (ACP) under the NSW Energy Savings Scheme (ESS) and a nationally recognised STC aggregator.
All program information in this article has been verified against the Essential Services Commission (ESC) VEU program registry and official Victorian Government guidance current as of March 2026. This article is intended as a general guide only. Program terms, VEEC values, and eligibility criteria are subject to change. Readers should contact Glow Green or the ESC directly to confirm current eligibility before proceeding with any upgrade.
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Bibliography & References
All sources verified as of March 2026. Glow Green recommends checking each source directly for the most current version.
Official Government & Regulatory Sources
Essential Services Commission Victoria. (2026). Victorian Energy Upgrades (VEU) Program. Retrieved March 2026
Essential Services Commission Victoria. (2026). Accredited Persons Register — VEU Program. Retrieved March 2026
Essential Services Commission Victoria. (2026). Register of Scheduled Activity Premises. Retrieved March 2026
Essential Services Commission Victoria. (2025, July). Activity 44 — Commercial & Industrial Heat Pump Water Heaters: Updated Activity Guide. Retrieved March 2026
Essential Services Commission Victoria. (2025, May). VEU Program Update: Removal of VEEC Creation Deadline. ESC Program Bulletin. Retrieved March 2026
Essential Services Commission Victoria. (2026, January). VEU Program Fees 2026–2027. Retrieved March 2026
Department of Energy, Environment and Climate Action (DEECA), Victoria. (2026). Victorian Energy Upgrades — Strategic Review 2026. Stakeholder Consultation Paper. Retrieved March 2026
Department of Energy, Environment and Climate Action (DEECA), Victoria. (2026). VEU 2026 Target — 4.4 Million VEECs. Annual Target Notice. Retrieved March 2026
Victorian Government. (2025). Victorian Energy Efficiency Target (Amendment) Act 2025: Extension of Program to 2045. Retrieved March 2026
Solar Victoria. (2026). Solar for Business Program. Retrieved March 2026
Glow Green Internal Sources
Glow Green. (2026). Commercial Heat Pump Hot Water — Activity 44.
Glow Green. (2026). Non-Building-Based Lighting Upgrade Victoria.
Glow Green. (2026). Certify Platform — Compliance & Certificate Management.
Industry & Supporting Sources
Energy Efficiency Council (EEC). (2026). Commercial Sector Energy Efficiency Outlook — Australia 2026. Melbourne: EEC. Retrieved March 2026
Australian Energy Market Operator (AEMO). (2026). 2026 Electricity Outlook — Victoria. Melbourne: AEMO. Retrieved March 2026
Clean Energy Regulator. (2026). Small-scale Technology Certificates (STC) — Business Guide. Retrieved March 2026