The Air Conditioner Rebate Victoria 2025 makes it easier and more affordable for Victorians to replace outdated cooling and heating systems. Eligible households can receive up to $1,000 off installation and save an additional $200–$600 every year on energy bills by switching to modern, efficient systems.
In this guide, you’ll find who qualifies, how much you can save, which systems are eligible, and the exact steps to apply.
How much can you save with the rebate?
The rebate reduces upfront costs and delivers ongoing savings through lower bills.
Case study: How a Melbourne family cut costs with an air conditioner rebate
The Wilson family from Victoria replaced their old ducted gas heater and wall-mounted AC with a reverse cycle split system in 2025.
System cost before rebate: $3,200
Rebate applied: –$1,000
Final installation cost: $2,200
Annual bill savings: $450
In just 5 years, they expect to save over $3,200 (rebate + running costs), while cutting household emissions by nearly 50%.
Savings comparison by household type
Who is eligible for the rebate in Victoria 2025?
To qualify, you must:
Live in Victoria (homeowner or renter).
Have a combined household taxable income under $180,000/year.
Replace an old ducted gas heater or inefficient AC.
Use an accredited provider approved by the Essential Services Commission.
Install a system that meets the required energy efficiency ratings.
Renters are eligible but require landlord approval.
How does the rebate process work?
Applying is straightforward:
Confirm eligibility on the VEU website.
Choose an accredited provider listed by the ESC.
Get a quote for a compliant system.
Prepare documents (income proof, ownership/rental).
Install the system, rebate applied directly to invoice.
Which air conditioner is the best choice for you?
- Reverse cycle split system → best for both heating and cooling, ideal for single rooms or small areas.
- Multi split system → connects multiple indoor units, perfect for larger homes.
- Ducted reverse cycle system → centralised heating and cooling distributed through ducts, ideal for whole-home comfort but higher upfront cost.
- High efficiency models → higher upfront cost but lowest long-term bills and emissions.
Before you apply: Checklist
Documents
- Income proof (tax return or payslips).
- Property ownership or rental agreement.
- Landlord consent (if renting).
- Quote from an accredited provider.
Requirements
- Household taxable income < $180,000.
- Replacing an existing inefficient system.
- New AC must meet efficiency ratings.
Steps
- Check eligibility online.
- Request quotes from providers.
- Prepare documents.
- Book installation.
Pro tip: Only accredited providers can apply the rebate. Choosing the wrong installer could void your application.
Can you combine this rebate with other incentives?
Yes. You can combine the air conditioner rebate with:
Heat pump hot water rebates.
Example: Replacing a ducted gas heater + installing a heat pump hot water system = thousands in savings within 5 years.
How much can you reduce bills and emissions?
New systems use up to 50% less electricity.
Switching from gas heating cuts both bills and emissions.
Every upgrade contributes to Victoria’s net zero emissions goals.
Common Myths about the Air Conditioner rebate Victoria 2025
Myth 1: The rebate gives you a completely free air conditioner.
Fact: The rebate reduces upfront costs by up to $1,000, but most households still pay part of the installation. Only some low-income programs offer fully subsidised systems.
Myth 2: You can apply even if you don’t have an existing system.
Fact: To qualify, you must replace an old ducted gas heater, wall unit, or inefficient air conditioner with an eligible reverse cycle system.
Myth 3: Any installer can process the rebate.
Fact: The rebate is only valid if the installation is done by an accredited provider approved under the Victorian Energy Upgrades program.
Myth 4: Approval is instant.
Fact: Applications usually take 2–4 weeks once all required documents are submitted.
Myth 5: All air conditioners qualify.
Fact: Only models that meet the energy efficiency standards set by the Essential Services Commission are eligible.
FAQ – Air Conditioner Rebate Victoria 2025
- Can renters apply?
Yes, renters can apply but landlord approval is required. - Does the rebate cover ducted air conditioning?
Yes, if you are replacing an old ducted gas heater with an approved reverse cycle system. - How long does approval take?
Most applications are processed within 2–4 weeks once all required documents are submitted. - Can I get a free air conditioner?
Some low-income households may qualify for a fully subsidised upgrade under special government programs. - What steps should I follow to apply?
Check your eligibility, choose an accredited provider, request a quote, prepare your documents, and book the installation. The rebate will be applied upfront.
Why apply now?
- Programs may have limited
- You lock in lower energy bills immediately.
- You contribute to a cleaner Victoria.
If you’re running an old AC or gas heater, now is the best time to make the switch.
Get started today
Glower can guide you through the rebate process, connect you with accredited providers, and help you choose the right system.
