Victorian energy upgrades

Why this is important

The Victorian Energy Upgrades program aims to increase the uptake of energy-efficient appliances and building upgrades to reduce energy demand, household energy costs and greenhouse gas emissions.

When approved businesses complete energy-saving projects, such as installing efficient appliances and upgrading buildings, they create Victorian Energy Efficiency Certificates. Each certificate represents one tonne of greenhouse gas emissions reduction. Energy retailers must buy these certificates from the approved businesses to meet their government mandated efficiency targets. Energy retailers pass the cost of buying certificates on to consumers through electricity bills.

Since 2023, the program has also supported households and businesses to move away from gas appliances. This works towards the government’s Gas Substitution Roadmap and energy transition objectives. However, energy savings under the programs have declined and the program may have impacted electricity prices. There have also been compliance issues including fraudulent certificates.

It is timely to improve transparency over the management and outcomes of this important, but under-reported component of the government’s greenhouse gas and energy transition agenda.

What we plan to examine

We plan to examine if the Victorian Energy Upgrades program has reduced energy demand and greenhouse gas emissions, and if it complies with the Victorian Energy Efficiency Target Act 2007 and its subordinate instruments.

Who we plan to examine

Department of Energy, Environment and Climate Action

Essential Services Commission

Further information

This is one of several engagements that look at Victoria's transition to renewable energy.