Heating and cooling rebates in Australia
Heating and cooling incentives work differently from hot water in one way that matters more than any individual figure: there is no federal scheme. Small-scale Technology Certificates cover water heaters and solar panels only. So where a hot water buyer gets $800 to $1,200 wherever they live, a heating and cooling buyer gets whatever their state offers — and in three states, nothing.
That makes the spread far wider here, and it makes the Victorian program the most valuable household energy incentive in the country by a distance.
Victoria: a $2,000 higher co-payment from 30 September 2026
VIC: changed on 30 September 2026
From 30 September 2026 the minimum co-payment for ducted systems and multi-head splits of 10 kW or more is $3,000 including GST, up from $1,000. Small non-ducted systems stay at $200.
For a ducted system or a multi-head split of 10 kW or more, that is $2,000 more of your own money than before — not because the discount shrank, but because the minimum you have to contribute went up by that much.
Victorian Energy Upgrades (VEU), effective 30/09/2026. Verified 5 September 2026 — confirm with an accredited provider before relying on it.
The discount itself did not shrink — what changed is the minimum you are required to contribute, which went from $1,000 to $3,000 for ducted systems and multi-head splits of 10 kW or more. Small non-ducted systems were unaffected and stay at $200.
If you are comparing Victorian quotes for a ducted system, or reading an installer's page written before the change, check which minimum it assumes: a figure built on the old $1,000 co-payment is $2,000 too low. And as before, do not let the rebate push you into an upgrade you were not going to make — a system you did not need is not a saving.
What is available where
| State or territory | Scheme | Indicative value | Changes |
|---|---|---|---|
| Victoria | Victorian Energy Upgrades (VEU) | $1,000–$3,500 | Co-payment rose 30/09/2026 |
| New South Wales | Energy Savings Scheme (ESS) | $200–$2,600 | — |
| Australian Capital Territory | Home Energy Support Program | $0–$2,500 | — |
| South Australia | Retailer Energy Productivity Scheme (REPS) | $300–$1,500 | — |
| Queensland | Climate Smart Energy Savers | $0–$1,000 | — |
| Western Australia | no state scheme | — | — |
| Tasmania | no state scheme | — | — |
| Northern Territory | no state scheme | — | — |
There is no federal rebate for heating or cooling. Small-scale Technology Certificates apply to water heaters and solar panels only, so unlike a hot water upgrade there is no national floor — what you get depends entirely on your state. Every figure is indicative and delivered as a discount by an accredited installer rather than claimed back. Last verified 5 September 2026.
All five schemes work the same way: an accredited provider calculates the certificates your upgrade creates and discounts your invoice. There is nothing to claim back and no form to lodge. The consequence is that the discount depends on what you are replacing, not on what you buy — swapping ducted gas for reverse cycle earns far more than putting a split into a room that had nothing, because the scheme pays for energy saved.
By state and territory
New South Wales
Energy Savings Scheme (ESS). 478 heating and 683 cooling degree days, a cooling climate.
Victoria
Victorian Energy Upgrades (VEU). 1,239 heating and 173 cooling degree days, a heating climate.
Queensland
Climate Smart Energy Savers. 193 heating and 1,208 cooling degree days, a cooling climate.
South Australia
Retailer Energy Productivity Scheme (REPS). 793 heating and 563 cooling degree days, a heating climate.
Western Australia
No state scheme — federal certificates do not cover heating or cooling. 545 heating and 872 cooling degree days, a cooling climate.
Tasmania
No state scheme — federal certificates do not cover heating or cooling. 1,813 heating and 0 cooling degree days, a heating climate.
Australian Capital Territory
Home Energy Support Program. 1,833 heating and 210 cooling degree days, a heating climate.
Northern Territory
No state scheme — federal certificates do not cover heating or cooling. 0 heating and 3,508 cooling degree days, a cooling climate.
Frequently asked questions
Is there a federal rebate for air conditioning?
No. This is the single most common misconception in this area, and it comes from people reading about hot water. Small-scale Technology Certificates fund heat pump water heaters, solar thermal and rooftop solar. They do not fund space heating or cooling. If your state has no scheme, there is no national floor underneath you.
Why does replacing ducted gas earn more than a new install?
Because every one of these schemes pays for energy saved rather than for hardware bought. Replacing a ducted gas system with reverse cycle removes a large, inefficient gas load and replaces it with a much smaller electrical one, which generates a lot of certificates. Putting a split system into a room that previously had no heating saves nothing on paper — you are adding comfort, not removing consumption — so it earns very little.
Can I get the rebate on a system I have already bought?
No. The discount is created by an accredited provider at the point of installation, and it has to be arranged before the work is done. Buying a unit online and finding an installer afterwards forfeits it entirely. This is the most expensive mistake available in this area and it is completely avoidable.
Do these stack with the hot water rebates?
They are separate upgrades under separate activities, so yes — a Victorian household replacing both a gas water heater and ducted gas heating draws on both, and in Victoria that is several thousand dollars in total. What they do not do is stack on a single appliance: one system, one discount.
What if I rent?
Almost all of these require you to own the property, and the ACT's concession rebate says so explicitly. The practical obstacle is the usual one: the landlord pays for the system and the tenant pays the running cost. What this site can give you is the number — what the current heating is costing you a year — which is a concrete thing to put in front of an agent.