VEU considering co-payment and warranties

The Victorian Energy Upgrades (VEU) program is consulting on introducing co-payment and warranty requirements for space heating and cooling, water heating, and cold room upgrades.

In May 2023, the VEU program was expanded to include new incentives for Victorian homes and businesses to upgrade their existing gas heating and hot water to efficient electric appliances. These activities reduce the upfront costs for households and businesses to install heat pump water heaters and reverse-cycle air conditioners.

The government is proposing to increase consumer protections and improve consumer outcomes for these electrification activities by:

• Introducing requirements to manage the quality of heat pump water heaters and reverse-cycle air conditioners installed in the VEU program
• Introducing minimum co-payments for all space heating and cooling activities, water heating systems, and cold room upgrades.

The Victorian government says these requirements will both encourage consumers to engage with accredited providers about the suitability of products for their specific circumstances, and to provide them with increased confidence that the product they are purchasing is of a certain quality and that they will be protected in case of any malfunction or defect.

The consultation paper sets out options for updating the scheme.

The closing date for consultation submissions is April 21, 2024. The feedback will inform the development of new co-payment and warranty requirements, which will begin in July 2024.

More information about the consultation is available at the Engage Victoria website.

Do you think co-payment and warranty requirements for energy upgrade programs are a good idea? Or could this proposal adversely affect HVAC&R businesses? Let us know in the comments below.