When you replace gas ducted heating with ducted reverse-cycle air conditioning in Victoria, the Victorian Energy Upgrades (VEU) program takes a discount off the price. The catch for anyone comparing quotes is that some installers show prices before the discount and some show them after. This page explains how much the discount is and how to put every quote on the same footing.
The quick answer
The Victorian Government lists an indicative VEU discount of up to $2,520 for a 10kW ducted system, up to $4,200 for 16kW and up to $5,530 for 22.4kW when it replaces an existing ducted gas heater. The exact amount depends on the model installed and the certificate price on the day. All of our ducted prices are already shown after this discount.
How much the VEU discount is
| New ducted reverse-cycle system replacing a ducted gas heater | Indicative discount |
|---|---|
| 10kW | Up to $2,520 |
| 16kW | Up to $4,200 |
| 22.4kW | Up to $5,530 |
Source: Victorian Government, energy.vic.gov.au, Victorian Energy Upgrades heating and cooling discounts (household figures, checked 29 October 2026). Sizes in between generally sit between these figures. The discount is lower if there is no gas ducted heater being replaced.
Who qualifies
- You are replacing (or removing) an existing ducted gas heater
- The new system is a VEU-approved product
- The work is done through a VEU accredited provider, who takes the discount off your price for you
- The program also requires a minimum customer contribution, so the discount can't bring the price to nothing
Before-rebate and after-rebate quotes: how to compare them
If one quote shows a price before the VEU discount and another shows it after, take the discount off the "before" quote first. As a rough guide, the indicative discount is around $3,600 for a 14kW system, around $4,600 for 18kW and around $5,000 for 20kW (worked out from the government figures above).
Worked example (illustrative)
Quote A is $16,900 for an 18kW ducted system, "before VEU". Quote B is $12,990 for an 18kW system, "after VEU". Taking about $4,600 off quote A gives roughly $12,300. The two quotes are then much closer than they first looked, and the deciding factors become what each includes: the number of temperature-controlled zones, outlets, the ductwork, and whether the old heater removal is in the price.
Our own ducted prices are all after the VEU discount when replacing an existing gas ducted heater. Our extras price list shows what zones, outlets and double-storey work add, and the ducted quote checker does the before/after maths for you.
Common questions
How much is the VEU rebate for replacing gas ducted heating in 2026?
The Victorian Government lists an indicative discount of up to $2,520 for a 10kW ducted reverse-cycle system, up to $4,200 for 16kW and up to $5,530 for 22.4kW when it replaces an existing ducted gas heater. The exact figure depends on the model and the certificate price.
Are your ducted prices before or after the VEU rebate?
After. Every HVAC Climate Solutions ducted price is shown after the VEU discount, when an existing gas ducted heater is being replaced.
Do I have to apply for the VEU rebate myself?
No. When the work is done through a VEU accredited provider, the discount comes straight off your price. There is no separate claim to make.
What if I don't have gas ducted heating?
A smaller discount can still apply in some cases, but the large discounts are for replacing a ducted gas heater. We can give you a fixed quote at a free in-home design either way.