Sounds too good to be true?

Government energy rebates can knock thousands off the cost of upgrading your heating, cooling, hot water, or solar system.
And for a lot of Victorian homeowners, that immediately triggers scepticism.

Who’s paying for this?
Is there a catch?
Why would the government cover so much of the cost?

Fair questions. Let’s break it down clearly—no jargon, no sales spin—so you understand how these rebates are funded and why they’re completely legitimate.

Where the rebate money actually comes from

Government energy rebates like the Victorian Energy Upgrades (VEU) program aren’t paid out of general tax revenue.

They’re funded by energy retailers.

Under Victorian law, electricity and gas retailers must meet energy-efficiency and emissions-reduction targets. Instead of upgrading homes themselves, they fund those upgrades by purchasing energy-saving certificates created when approved systems are installed.

Here’s how it works:

• You replace an old, inefficient system with an approved high-efficiency one
• That upgrade creates energy-saving certificates
• Energy retailers buy those certificates to meet their legal obligations
• The value of those certificates becomes your rebate, applied upfront

That’s why rebates come straight off your install price—there’s no waiting months for a refund.

Why the rebates are so generous

The aim isn’t small, individual savings. It’s large-scale change.

When thousands of Victorian homes:

• Replace old gas heaters
• Switch to heat pump hot water
• Install efficient heating, cooling, or lighting

The result is:

• Lower peak energy demand
• Reduced emissions over decades
• Less strain on the electricity grid

To make that happen at scale, the incentives have to be meaningful. That’s why rebates can reach thousands of dollars, especially when you’re removing old gas or inefficient electric systems.

Why these rebates are legitimate (even if they sound too good)

These programs are:

• Government-regulated
• Limited to approved products
• Installed by accredited providers
• Regularly audited

If a system doesn’t meet the rules, the rebate doesn’t apply. There’s no loophole.

A legitimate rebate offer should always show:

• The exact rebate amount
• The full installed price
• The final price after rebates
• Clear separation between costs and incentives

If those numbers aren’t shown upfront, that’s a sales issue—not a rebate issue.

Why homeowners are right to be sceptical

The rebates are real.
But not everyone markets them honestly.

Common problems in the market include:

• Vague “savings available” messaging
• Prices revealed late in the process
• Rebates hidden inside bundled discounts
• Pressure tactics like “rebates ending today”

That behaviour has damaged trust. And it’s why many homeowners assume rebates themselves must be fake.

They’re not.
The problem is how some companies sell them.

What a legitimate rebate offer should look like

A trustworthy provider will:

• Explain which program applies (VEU vs Federal STCs)
• Show the rebate as a clear line item
• Give you a fixed price before work starts
• Let you decide in your own time

No cold calls.
No door knocking.
No surprises.

That’s how government-backed energy upgrades are meant to work.

See the numbers for your home

If you’re still unsure, that’s completely fair.

The simplest way to know what’s real is to see the numbers for your own home.

Book a free home check and you’ll get:

• Clear rebate eligibility
• Exact savings shown upfront
• A fixed price with no obligation

No pressure. Just transparency.

Think Smart. Save Big.