VEU specifications changes commencing 1 February 2022

We have released updated guidance documents and VEU registry changes to reflect the release of Victorian Energy Upgrades - Specifications 2018 - Version 12.0 which come into effect from 1 February 2022.

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31 January 2022

The Department of Environment, Land, Water and Planning released Victorian Energy Upgrades - Specifications 2018 - Version 12.0 which will come into effect from 1 February 2022. This follows the release of the updates to the Victorian Energy Upgrades Regulations 2018 on 14 December 2021.

The changes include:

  • introduction of a new commercial and industrial heat pump water heater activity (activity 44)
  • removal of building based lighting upgrade activity at sites required to comply with Part J6 of the Building Code of Australia (activity 34 J6) from the program
  • implementation of a reduced high intensity discharge (HID) incentive for lamps under building based lighting upgrade (activity 34 non J6)
  • annual adjustment of the electricity emissions factor input value in emissions reduction calculations from 0.9546 to 0.8142.

New commercial and industrial heat pump water heater activity 

A new commercial and industrial heat pump water heater activity (activity 44) has been introduced with the below three activity scenarios. The table below details the product to be decommissioned and the criteria for the product to be installed for each scenario. 

Activity scenarios

Decommissioning requirements

Product to be installed

44A

One or more:

  • gas-fired hot water boilers; or
  • gas-fired water heaters.

Boiler or heater decommissioned must not be less than 10 years old.

 

One or more air source heat pump water heaters

that:

  • have an insulated storage volume not exceeding 700 litres,
  • are certified to AS/NZS 2712,
  • provide a minimum delivery temperature of 45°C, and
  • are installed by a licensed or registered plumber.

Or that:

  • have an insulated storage volume exceeding 700 litres,
  • provide a minimum delivery temperature of 45°C, and
  • are installed by a licensed or registered plumber.

44B

One or more:

  • electric resistance hot water boilers; or
  • electric resistance water heaters.

Boiler or heater decommissioned must not be less than 10 years old.

 

44C

None

Commercial and industrial heat pump water heater documents

Documents for undertaking the new commercial and industrial heat pump water heater activity are now available. These include:

Overview of our regulatory approach

This new activity allows for a range of decommissioning scenarios and assigns VEEC values based on a deemed approach. If your heat pump water heater upgrade activity is of a complex nature or linked to other upgrades, we recommend that you consider the suitability of the measurement and verification method for project-based activities.

Becoming accredited

You can now apply to become accredited for the new heat pump water heater activity by completing the heat pump water heater activity application form and submitting the form via the VEU registry.

A streamlined accreditation pathway will be available for APs who:

  • have been accredited for water heating, gas efficiency or cold room activities within two years of submitting their heat pump water heater application, and/or
  • have created certificates within those two years of submitting their heat pump water heater application.

Product approval

Any product installed as part of a heat pump water heater activity must be listed as an approved product on our Register of Products at the time of VEEC creation. Documentary evidence required and the process for submitting a product for approval is outlined in the product approval guide.

Installer requirements

All heat pump upgrades must comply with legal requirements and be undertaken by personnel holding the following licences as required for the upgrade scenario:

  • a plumber licence registered with the Victorian Building Authority for gas fitting and water supply classes
  • an electrician licence or a Restricted Electrical Worker registered with Energy Safe Victoria (where wiring work is undertaken)
  • an RAC01 refrigerant handling licence (where handling of refrigerants is required).

Decommissioning requirements

Activity scenarios 44A and 44B require existing gas-fired hot water boilers or heaters and electric resistance hot water boilers or heaters to be decommissioned.  

If your upgrade involves decommissioning an existing product, you must decommission that product prior to certificate creation. You must provide details of your decommissioning practices to us for review as part of your accreditation application for these activities.

Decommissioning must be undertaken by appropriately qualified personnel.

Victorian energy efficiency certificate assignment

A VEEC assignment form must be completed by the energy consumer to create certificates under the program. You must provide a copy of your VEEC assignment form to us as part of your application for accreditation/approval to undertake this activity.

Activity assessment

Given the complex nature of these upgrades and the potential VEEC volumes involved for a single installation, we aim to conduct a detailed assessment of upgrades submitted for VEEC creation.

You will be required to collect and maintain documentation for each upgrade which must be provided to us upon request. All evidence required for each of the activity scenarios is outlined in the activity guide.

Feedback from stakeholders on the new activity

We have worked to deliver clear and risk-based administrative requirements to support program participants in delivering the heat pump water heater activity under the VEU program. We are interested in feedback from stakeholders on these requirements to further refine them as appropriate.

We propose holding a workshop with interested stakeholders to gather this feedback. If you would like to participate in a workshop to provide feedback on this activity, please let us know by emailing veu@esc.vic.gov.au before 18 February 2022.

You can also provide feedback on specific elements of the activity guide by emailing veu@esc.vic.gov.au.

Changes to building based lighting upgrade activity (activity 34)

You will no longer be able to create certificates for building based lighting upgrades at sites required to comply with Part J6 of the Building Code of Australia (activity 34 J6) after 31 January 2022.

The building based lighting upgrade activity has also been updated to reduce the incentive (from 0.6 to 0.4 discount factor) for high incentive discharge (HID) lamps installed under activity 34 Non J6. The Lamp circuit power (LCP) values in Table 34.8 of the VEU specifications have been adjusted for metal halide, mercury vapour and high-pressure sodium light sources to account for the reduced incentive.

Updated program documents

We have updated the following documents to reflect activity 34 changes:

Changes to electricity emissions factors

The Victorian Energy Upgrades program’s electricity emissions factor will be reduced from 0.9546 to 0.8142 from 1 February 2022 to reflect the increase of renewable energy in Victoria.

The change in factor impacts the calculation of certificates for:

  • water heating activities (activities 1 and 3)
  • space heating and cooling activities (activities 5, 7, 9, 10, 23, and 28)
  • space conditioning activities (activities 13, 14 and 15)
  • low-flow shower rose activities (activity 17)
  • lighting activities (activities 21, 27, 34, 35)
  • appliance activities (activities 22, 24, 25, 26, 30, 31, 32, 33, 36)
  • project-based activities (the measurement and verification method).

Where to get help

If you have any questions on this program update, please contact VEU Support on (03) 9302 1310 or veu@esc.vic.gov.au.

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