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Home Commercial Lighting Upgrade Restarted In Victoria

Press Release: December 21, 2020

Victoria has moved to the last step of the roadmap to reopening, with key changes outlined in the PM statement

The businesses are now allowed to doorknock and upgrade halogen and fluorescent lights in household and commercial settings.

Consistent with government requirements, all businesses involved in this form of lead generation and all other Victorian Energy Upgrades (VEU) lighting upgrade activities must have an up-to-date COVIDSafe Plan for each workplace/site and must adhere to these at all times.

We at Ecofin Solutions have updated our COVIDSafe Plan that is consistent with requirements set out for the construction industry.

Our COVIDSafe plan also demonstrates our actions to help slow the spread of coronavirus (COVID-19) and manage risks while doorknocking, upgrading, and replacing the LED lights. This includes face masks, physical distancing requirements, and appropriate record-keeping to support contact tracing.

The regulatory body of the Victorian Energy Upgrades program has set a greenhouse gas emission reduction target of 40.6 megatonnes for the 2021-25 period that will require an average annual increase of 22-27 percent in energy savings.

It will be a significant step in achieving the Victoria state’s net-zero emissions target by 2050.

What is the Victorian Energy Upgrades Program?

Victorian Energy Upgrades(VEU) by the government of Victoria encourages and helps Victorian businesses & households in saving money on upgrading lighting costs, cutting energy costs, and contributing to the environment. This Victorian Government program is providing households and businesses with access to discounted or free LED lighting replacements in Victoria through accredited providers.

How does the Victorian Energy Upgrades Program work?

Every replacement or upgrade allows accredited providers to generate Victorian Energy Efficiency Certificates(VEECs). Each VEEC certificate represents one tonne of GHG(generated by a coal power plant) that has been prevented from entering our atmosphere(by saving electricity). Accredited providers then sell these certificates to energy retailers.

The Victorian Government sets annual greenhouse gas reduction targets that require energy retailers to buy a certain number of certificates. The target increases each year and it is 6.5 million tonnes for 2020.

New Targets for 2022-25

The Hon. Lily D’Ambrosio MP, Minister for Energy, Environment and Climate Change, has today announced that the Victorian Energy Upgrades Program targets for 2022 to 2025 will be:

  • 6.7 million certificates in 2022
  • 6.9 million certificates in 2023
  • 7.1 million certificates in 2024
  • 7.3 million certificates in 2025.

The targets will deliver significant benefits to the energy system, help Victoria achieve its climate goals by locking in 28 million tonnes of emissions savings through rebated or free LED lighting replacements, and reduce energy prices for all consumers, whether they participate or not. On average, participating households and businesses stand to save over $120 and $510 respectively each year.

The targets herald a new phase of the program by expanding incentives to a broad range of crucial energy demand-side technologies that will support the cost-effective transition of the energy sector. They will further support recovery by providing an additional $1.3 billion in investment in the demand-side management industry between 2022 and 2025 and supporting over 2200 jobs annually.

The Department has listened to stakeholder feedback received in response to its consultation on targets, and throughout the coronavirus pandemic. In recognition of the need for an orderly and supported transition, the electricity emissions factors need to be updated to reflect increasing renewable penetration. Introducing this change through gradual decreases in each year to 2025 will support industry transition.

Increases to shortfall penalty rates will support an expanded range of activities and be introduced gradually as part of this support for the transition.

Notes to editors

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