Are You Eligible for the 2026 Victorian Air Conditioning Discount?

With summer approaching and energy bills rising, now is the perfect time to consider upgrading your air conditioner. In 2026, the Victorian Government continues to offer significant upfront discounts through the Victorian Energy Upgrades (VEU) program — with savings of up to $8,000 when replacing an existing system. If you live or operate a business in Victoria, you almost certainly qualify.

Why is the Victorian Government Offering this Discount?

The Victorian government is committed to offering a discount on new air conditioners because they’re committed to reducing greenhouse gas emissions in Australia. They also want to help homeowners, renters, and businesses reduce their energy bills. The aim of the initiative is a sustainable future where people can be comfortable and productive at home and at work.

How Does the Air Conditioning Discount Work in Victoria?

The air conditioning discount in Victoria is part of the larger Victorian Energy Upgrades (VEU) program. It allows residents to receive a reduced price when they purchase and install an energy-efficient air conditioning unit. Eligibility, discount amount, and a variety of benefits all play a part in Victoria’s aircon discount.

Who is Eligible for an Air Con Discount?

Anyone who lives or operates a business in Victoria is eligible for the air con discount in 2026. This includes renters, although the government does recommend that tenants work with their landlords to make decisions about home upgrades like this.

• The air conditioner you choose must be VEU approved (which will mean it is high efficiency) and capable of heating as well as cooling.
• Many ducted and non-ducted reverse-cycle air conditioners (RCACs) meet these criteria.
• You’ll also need to receive the installation from an accredited professional — the discount is applied automatically at the time of installation, no prior application needed.

What Kind of Discount Can You Expect?

The exact discount you can expect will depend on your current system as well as the type and size of air conditioner you install. The largest discounts available are for installed ducted RCACs, but efficient room RCACs also come with significant discounts of up to $2,250 for homes and up to $1,750 for businesses.

Remember, you can check the Victorian Energy Upgrades website for a better idea of what kind of discount you qualify for.

Benefits of the VEU Air Con Program

Spending less on the purchase price of an air con system is a major benefit of the program, but the benefits don’t end there. Another key advantage is the cost savings over time. You’ll notice that your energy bills are immediately lower, which should mean the upgrade soon pays for itself.

You’ll also be reducing the environmental impact at the same time. These two factors should mean you feel less hesitant to turn on your air conditioner on hot days, which will mean your home is more comfortable for family members. The same can be said for your business, as this will make your office spaces more welcoming to employees as well as customers.

What’s New in the 2026 Victorian Air Conditioning Discount?

The VEU program has made several important updates for 2026. From 31 March 2025, all systems installed under the program must include a mandatory 5-year warranty — Efficient Energy Group includes this as standard. The program now strongly prioritises gas-to-electric upgrades, with the largest discounts going to households replacing gas ducted heating with a reverse-cycle split system. A minimum co-payment applies — $200 for systems up to 10kW and $1,000 for larger systems. There are no completely free air conditioning installations under the 2026 program, so be cautious of any provider claiming otherwise.

Receiving the Air Con Discount in 2026

The Victorian government has made receiving the air con discount in 2026 as easy as possible. It involves no paperwork on your part. As long as you choose an accredited provider and an approved air conditioner, you’ll receive the discount. There are just 3 simple things you need to do.

Step 1: Research What Air Conditioner You’d Like

Have an idea of what kind of model you’d like to install. Bear in mind, you don’t need to come to a final decision yet. The installer will be able to give all the advice you need.

Step 2: Find Out If You’re Eligible

Submit your details to an accredited provider to find out if you’re eligible for the discount. Efficient Energy Group operates throughout Victoria, and our staff are knowledgeable about different eligibility criteria.

Step 3: Schedule the Installation

Once the provider receives confirmation of your eligibility, it’ll be time to finalise your decision about what model you want so that you can schedule the installation. You don’t need to do anything on your side, because the experts will take care of everything.

How to Choose the Right Air Conditioner

To make the most of the program, it’s crucial to choose the right air conditioner. This involves considering the type of air conditioner, the size, and the provider. We’ll cover each of these more in-depth below, but you can also contact us for more tailored advice.

Type of Air Conditioner

There are three main types of RCACs:

• Single-split air conditioners consist of an outdoor unit connected to an indoor unit. These are ideal for cooling a single room in your property.
• Multi-split air conditioners use an outdoor unit connected to several indoor units. This setup makes them suitable for cooling multiple rooms or even the entire building.
• Ducted air conditioners have just an outdoor unit, which connects to different rooms and areas in the home through ducts and vents. This is another option for cooling an entire building.

Size

It’s important to choose an air conditioner that will be large enough to meet your cooling needs, while not being too large that you waste money on the purchase and operating costs. To pick the right size, consider what rooms you want to cool and which areas are prone to heating up in summer.

The Victorian government has these size recommendations for single and multi-split models:

For a ducted system, the government recommendations are between 1.1 kW and 1.4 kW for every 10 m².

Where Can You Get More Info on the Victoria Aircon Discount?

For more information on the Victoria aircon discount, check out this factsheet. The Victorian government has prepared this sheet to help consumers find the right RCAC for their needs.

Looking to Completely Electrify Your Home in Victoria?

Efficient Energy Group is your one-stop supplier and installer. We can help you upgrade your gas or electric hot water system, thanks to huge incentives available right now. Not only can you upgrade your air conditioning, but you can also switch to a more energy-efficient heat pump hot water system. Take advantage of the hot water rebates in Victoria and make the switch today. For more information, check out our Heat Pump Rebate Victoria page.

Frequently Asked Questions — Victorian Air Conditioning Discount 2026

Is the Victorian air conditioning discount still available in 2026?

Yes — the Victorian Energy Upgrades (VEU) program continues in 2026 and offers significant upfront discounts on eligible reverse-cycle air conditioning systems. The program has been extended to 2045, so there is no urgency to rush — however VEEC certificate prices fluctuate, and acting sooner locks in the current discount value.

How much is the Victorian air conditioning rebate in 2026?

The discount amount varies depending on what system you’re replacing and what you’re installing. Replacing a gas ducted heating system with a multi-head split system attracts the largest discounts — up to $8,000. Replacing an existing reverse-cycle air conditioner with a newer high-efficiency model attracts smaller discounts of $70 to $1,153. Your exact discount is calculated at the time of your quote based on current VEEC market prices.

Is there a free air conditioning offer in Victoria in 2026?

No — there are no completely free air conditioning installations under the 2026 VEU program. A minimum co-payment always applies: $200 for systems up to 10kW and $1,000 for ducted or multi-head systems over 10kW. Be very cautious of any provider advertising free air conditioning — this is misleading and does not reflect how the VEU program actually works.

Can renters access the Victorian air conditioning discount?

Yes — renters are eligible for the VEU air conditioning discount with landlord consent. The Victorian Government strongly encourages landlords and tenants to work together on energy efficiency upgrades. Most standard leases permit these upgrades as they don’t structurally alter the property.

Do I need to apply for the Victorian air conditioning rebate?

No — unlike traditional rebate programs, the VEU discount is applied upfront at the time of installation. You don’t submit any application or wait for a refund. Your accredited provider — like Efficient Energy Group — handles all the VEEC paperwork. You simply pay the discounted price on installation day.

Can businesses claim the Victorian air conditioning discount in 2026?

Yes — Victorian businesses are eligible for the VEU air conditioning discount. Up to five installations are permitted per commercial premises. The discount amount for businesses depends on the size and type of system installed. Contact Efficient Energy Group for a tailored commercial assessment.

What is the 5-year warranty requirement introduced in 2026?

From 31 March 2025, all air conditioning systems installed under the VEU program must include a minimum 5-year warranty against defects from the date of installation. This is a mandatory requirement — any provider not offering this warranty is non-compliant with the program. Efficient Energy Group includes the 5-year warranty as standard on all VEU installations.

How long does installation take?

Most residential split system installations are completed in a single day. Multi-head systems may take 1–2 days depending on the number of indoor units. Efficient Energy Group’s licensed electricians and plumbers handle everything including removal and recycling of the old system, compliance certificates, and post-installation checks.

Wrapping Up

There is a lot to consider when choosing the right air conditioner for your home or business. In addition to the type, brand, and model of the unit, you’ll need to make sure you have the appropriate size to maximise efficiency and make the most of your discount.

Since you’ll need to work with an accredited provider to receive the installation anyway, it makes sense to involve the installer from the start. The experts at Efficient Energy Group will support you every step of the way by advising you on the best air conditioner for your needs. We’ll also handle the paperwork for your VEU discount and complete a high-quality installation.

For full pricing details and to check your eligibility, visit our Victorian air conditioning discount page. Get started now.