Victorian Energy Efficiency Certificates (VEECs)1 are created as part of the Victorian Energy Upgrades (VEU) program, a scheme administered by the Essential Services Commission designed to help Victorian businesses and households reduce their energy bills and greenhouse gas emissions. Businesses can earn VEECs by implementing energy-saving measures, such as upgrading lighting, installing solar panels, or improving HVAC systems.
These environmental certificates encourage energy efficiency through by making it more cost effective for Victorian businesses to install energy efficient products, engage in energy efficiency related activities and reduce greenhouse gas emissions.
A VEEC can be created Accredited Person2 when a business carries out an eligible activity such as installing more efficient heating or cooling. The VEEC is created by the Accredited Person, and the value is usually offset against the project cost. The Accredited Person then either sells the VEEC to a liable entity to meet its obligations under the VEEC Act (or keeps it if it is a liable entity) or engages in trading on the market.
It’s important that certificate lifecycle guidelines are adhered to if your business is undertaking an eligible upgrade project. VEECs must be created no later than six months after the end of the year in which an activity was completed. VEECs also expire six years from the date on which the approved activity was undertaken, or once surrendered to the Essential Services Commission.
There are around 40 approved energy-efficient electricity and gas activities that can be used to create VEECs, including activities related to heating, cooling, lighting, space conditioning, cold rooms, and gas efficiency. For a complete list of installation and project-based activities that are approved to create VEECs under the VEU program, head to the Essential Services Commission website3.
Shell Energy’s expert energy engineers can assist you in improving your business’s energy efficiency. As an Accredited Person, Shell Energy can create VEECs from your energy efficiency projects.
The number of VEECs an energy efficiency project creates is determined by reference to the amount of greenhouse gas saved. Entities with VEEC liabilities under the VEEC Act, such as energy retailers, purchase VEECs to meet their liability, which is calculated based on the volume of energy they sell each year. VEECs may also be purchased by other Accredited Persons, certificate traders or entities that hold VEU accounts.
As with all State and Federal environmental certificates, the spot price of VEECs fluctuates depending on supply and demand.
Applied as a discount to the upfront capital cost, VEECs generated as part of a project, can help businesses achieve shorter payback periods and can be invested into the next energy-saving project. If your business is located in Victoria and consumes significant amounts of electricity, gas or both, Shell Energy’s team of expert energy engineers can assist you in understanding how the Victorian Energy Upgrade (VEU) program may help offset the cost of implementing energy-saving projects.
By identifying the opportunities for energy efficiency projects and guiding businesses through the process of implementing them and creating environmental certificates such as VEECs, Shell Energy helps businesses reduce their energy consumption and energy-related operating costs. This approach enables businesses to continually improve their energy efficiency and sustainability while benefiting financially.
To create VEECs from your energy projects you need to work with an Accredited Provider. Shell Energy is an Accredited Provider in the VEU program, and the team at Shell Energy offer support by facilitating the creation of VEECs through eligible energy upgrade projects. In fact, our team of energy engineers specialise in visiting businesses to identify energy-efficiency opportunities and recommending energy-saving products and services that would be eligible to create VEECs.
Ready to move closer to your decarbonisation goals and improve your business’ energy-efficiency while benefiting from the financial incentives available?
Whether your business energy uses electricity or gas or both, Shell Energy can help unlock any untapped efficiencies within your business. Get in touch with Shell Energy on 13 23 76 or at [email protected] and a member of their expert energy engineer team will be more than happy to help.
13 April 2023
STCs: Tradeable certificates that are created under the Small-scale Renewable Energy Scheme (SRES) which create a financial incentive for installing solar power and other renewable energy systems
4 May 2022
Large-scale Generation Certificates (LGCs) are the most transparent way to certifiably demonstrate your business’s commitment to renewable energy and carbon emission targets.
7 January 2021
Update your knowledge on Australian State and Federal Renewable Energy and Energy Efficiency Schemes to make the right energy decisions for your business.