If you run a business in Victoria, you’re probably watching your energy bills rise month after month. Solar sounds like a good option, but the upfront costs still feel high. And when people start mentioning things like STCs, LGCs, and now VEECS, it all sounds like too much red tape.
You’re not alone. Most business owners feel lost trying to make sense of solar rebates. It’s a sea of acronyms, and there aren’t many clear answers. What you want to know is: How does this work? How much can I save? Is this even worth it?
This guide breaks down VEECS (Victorian Energy Efficiency Certificates) in plain English. You’ll learn how the scheme works, what makes it valuable, how it compares to other rebates, and whether it’s a fit for your business.
What Are VEECS and How Do They Work for Commercial Solar in Victoria?
VEECS is a government-backed rebate program for Victorian businesses. They help reduce the cost of energy efficiency upgrades, such as solar installations.
When you install a solar system, the program rewards you with certificates. You can then sell these certificates to recover part of your costs. Right now, this rebate is only available in Victoria.
Here’s how it works:
First, you work with a certified energy auditor. They look at your energy use from the last 12 months to understand your load profile. This is basically when and how your business uses energy.
Then, your solar provider and the auditor design a system for your site. The expert estimates the amount of energy your new system will produce and compares it to your current usage. That estimate tells you how many certificates you should earn.
Once this model is ready, you apply to the program and get approval to install your system.
After installation, the system runs for 12 months, during which its actual performance is measured. This step matters because the final number of certificates is based on real performance, not just estimates.
After the 12-month tracking period, the auditor compares the actual output to the model. If the numbers match, you get the full amount of certificates. If your system underperforms, you still get some, but fewer.
These certificates are usually issued 15 to 16 months after installation. At the time of writing, each certificate is worth about $80. That price may change. In many cases, this rebate can cover 40% to 50% of your total project cost.
That’s why many businesses see a return on investment in around two years, and this is faster than most other solar rebates.
If you’re interested in learning a bit more about commercial solar installation, you might want to check out the following article titled, Commercial Solar Panel Feasibility Study: How Businesses Can Assess Energy Benefits.
Why VEECS Are More Valuable Than STCs or LGCs for Victorian Businesses Installing Solar
There are three main solar rebate schemes in Victoria, Australia: VEECS, STCs, and LGCs. Here’s how they compare.
STCs (Small-scale Technology Certificates) are designed for smaller solar systems, with a capacity of up to 100 kilowatts. You receive the certificates as an upfront discount when the system is installed, based on the amount of energy it’s expected to generate. STCs are simple and fast, but they don’t apply if your system is larger than 100 kW.
LGCs (Large-scale Generation Certificates) are for bigger systems over 100 kW. Unlike STCs, you don’t get LGCs all at once. They’re issued over time based on how much energy your system actually produces. You have to report production and wait for certificates to be released in batches. It takes longer and adds complexity.
VEECS work differently. Like STCs, the certificate count is based on a performance model, but there’s no system size cap. Whether you’re installing a 500 kW, 1 MW, or even a 2 MW system, you can qualify.
Of course, you’ll need to wait 12 months after installation for performance tracking, but once that’s complete, the rebate is issued in a single payment.
If you need a larger system and want a faster return than LGCs can offer and more flexibility than STCs, VEECS are hard to beat in Victoria.
If you’re interested in learning a bit more about commercial solar payment options, you might want to check out the following article titled, How Should a Business Pay for a Commercial Solar Panel Energy System? Your Guide to CapEx, Leasing, and PPAs.
Is My Business Eligible for VEECS Solar Rebates in Victoria?
VEECS are available only to businesses located in Victoria. If that’s you and you’re planning to install a solar system, then this rebate may be applicable.
There’s no minimum or maximum system size. To qualify, you must follow the process closely.
Start by working with a certified energy auditor. They’ll review your last 12 months of electricity use and help design a system. Then, you submit the design for approval before it is installed. You can’t apply for the rebate after the system is already in place.
Once installed, your system will be monitored for a period of 12 months. The actual performance is then compared with the model created before installation. If your system meets the expected requirements, your certificates will be issued. This is usually within 15 or 16 months of installation.
Yes, it takes longer than STCs. However, the potential savings and larger system sizes can make the wait worthwhile.
If you’re interested in learning a bit more about PPAs, you might want to check out the following article titled, Power Purchase Agreements (PPAs) for Commercial Solar: A Practical Explanation for Businesses.
Should Your Business Use VEECS for Solar in Victoria?
If your business is located in Victoria and you plan to install solar, VEECS may be the best rebate option available. There are no size limits, the savings are high, and the rebate is based on real system performance rather than estimates.
Yes, it takes time. You need to follow the process step by step. But once your system is approved, installed, and monitored, you could earn back 40% to 50% of your total project cost.
Next step: Talk to a solar provider who understands VEECS. They’ll guide you through the audit, approval, and tracking process. The sooner you start, the sooner your business can save.
Solar is already a smart move. With VEECS, it’s even smarter, especially for Victorian businesses.
If you’re interested in learning a bit more about commercial solar requirements, you might want to check out the following article titled, Why Emissions Reporting Will Make or Break Your Business and How Solar Panels Help.
Frequently Asked Questions from Victorian Business Owners
Do I really have to wait over a year to get my rebate?
Yes. VEECS are based on measured performance, so your system must run for 12 months before your rebate is finalised. You’ll receive your certificates once real data confirms the amount of energy your system produced.
What if my system underperforms?
You’ll still get certificates, just fewer of them. The energy expert compares expected performance to actual results. The better your system performs, the more certificates you receive.
Are VEECS only for very large systems?
No. There’s no size minimum or maximum. Whether you need 500 kW or 2 MW, VEECS can apply. That flexibility is one of the scheme’s biggest strengths.
Is the certificate value guaranteed?
No. Like any market-based system, the price of VEECS changes. Right now, one certificate is worth around $80, but that could go up or down. Always check current values before making a decision.
Can I install the system first and apply later?
No. The process must begin with an energy audit before installation. If you skip that step or install too early, you won’t be eligible for the rebate.
Understanding how the process works and what to expect can help you avoid mistakes and make the most of the VEECS program.
