The new rebates on heating and cooling upgrades are available from 31 May 2023. These rebates are consistent with Victorian Government's policy of supporting electrification, that is, consumers using electric heat pumps (RCAC - Reverse Cycle Air Conditioners) rather than installing or upgrading gas heaters.    

Highly efficient RCACs offer the greatest emissions reduction potential when replacing any other space heating appliances, including gas appliances. These products become even more effective over time as the efficiency of air conditioning equipment improves. 

Consumers will also benefit through energy bill savings from installing a RCAC to service both their heating and cooling needs rather than upgrading to gas appliances. Approximately 74 per cent of residential gas use is for space heating, so upgrading gas heating appliances to efficient RCACs can be an effective way of reducing both emissions and gas demand. The cost-effectiveness of electrification activities can also be increased where households have rooftop solar photovoltaic (PV) panels installed.