Proposed Changes to the VEU Program

‍Engage Victoria is currently consulting on proposed changes to the VEU program affecting solar and heat pump water heaters. This article describes the proposed changes to the VEU program.

Transition from testing standard AS/NZS 4234:2008 to AS/NZS 4234:2021

Timeline: 

• First half of 2023 - All new products must be registered to the AS/NZS 4234:2021 standard, with modelling at two load sizes.
  
• 6 months from response to consultation publication (April 2023)
  - Transition calculations replace current calculations for scenario 1C and 1D for existing registrations to AS/NZS 4234:2008
  - Annual energy savings will be calculated using the Be and Bs figures provided from the 2008 modelling, but calculated compared to the reference water heaters from the 2021 Standard. Water heaters modelled to drop below the 60 per cent minimum energy saving benchmark will be removed from the ESC product register
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• 1st July 2024 - any products that have not been modelled to AS/NZS 4234:2021 will be removed from the VEU program.

Key differences between testing standard AS/NZS 4234:2008 and AS/NZS 4234:2021

• A change to the weather files - this will impact all water heating systems.
• A change to the reference water heater systems - this will impact the annual energy savings percentage calculated for these products.

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Addition of new gas replacement activities

New gas replacement activities will be introduced into the VEU program in the first half of 2023:

• Activity 3A - Replacing a gas or LPG water heater with an electric boosted solar water heater
• Activity 3C - Replacing a gas or LPG water heater with a heat pump water heater

Only medium load size is eligible for these scenarios, and products must be registered to AS/NZS 4234:2021 to be eligible.
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Transition to low GWP HPWH products

From the end of 2023, only heat pump water heater (HPWH) products with a refrigerant global warming potential (GWP) lower than 700 will be eligible for installation. This means products that use refrigerants such as R-134a and R-410a will be ineligible for installation.

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Removal of incentives to replace electric water heaters with gas water heaters

By the 30th April 2023, Activities that incentivise replacing inefficient electric water heaters with gas water heaters (1A, 1B, 1F and 3B) will be removed from the VEU program. Existing registrations will not be removed.

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About the VEU

The Victorian Energy Upgrades (VEU) program is voluntary initiative that provides subsidies for residential and business consumers to reduce their energy use by upgrading products. VEECs (Victorian Energy Efficiency Certificates) are awarded to eligible products based on their efficiency. Each VEEC represents one tonne of greenhouse gas emissions saved over the lifetime of the activity or product installed.  

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Our Services

EnergyAE specialises in helping manufacturers to register their product onto the VEU Registry efficiently. We provide the following VEU related services:

• Eligibility check
• TRNSYS modelling
• Preparation of application documents
• Application via the VEU Registry
• Training in TRNSYS modelling and VEU Registration

Get in touch with us today to discuss an upcoming project.

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