VEEC FAQs
- What is a VEEC?
- Who is participating in the VEEC scheme?
- How many VEECs can I get?
- What is a VEEC worth?
- Does it matter where the activity occurs?
- Do I need to be registered with the ESC to create VEECs?
- Which products are eligible?
- What does Green Energy Trading do with my VEECs?
- How does Green Energy Trading make their money?
- When will I get paid?
- How long do I have to claim VEECs?
- Which buildings are included?
- What are my obligations?
- My customers want more details, what should I do?
- What is required as evidence of decommissioning?
- When can a VEEC be created?
- What are the targets for the VEET scheme?
- Can I get RECs and VEECs for my solar hot water system?
- Is this part of the Carbon Pricing Scheme?
- Where can I get more information?
Victorian Energy Efficiency Certificates (VEECs) are designed to support households reduce greenhouse gas emissions. Each VEEC represents one tonne of carbon dioxide equivalent (CO2-e) abated by a prescribed activity.
2. Who is participating in the VEEC scheme?
The Essential Services Commission (ESC) administers the scheme. Green Energy Trading is an ‘accredited person’ which means we create VEECs on behalf of retailers, installers and consumers.
Green Energy Trading then sells VEECs to liable parties who are required to surrender them to the government as a demonstration of their support for energy efficiency measures. If they do not surrender enough certificates they must pay prescribed penalty per VEEC.
The ESC has created calculators for all activities click here. For hot water systems the calculation of a VEEC is the abatement factor x regional factor. The abatement factor is determined by the product and the regional factor is determined by the postcode.
VEECs are a commodity traded on the open market so the VEEC price is subject to change. Our current by back price can be found on our Pricing page.
5. Does it matter where the activity occurs?
The activity must occur in Victoria. Victoria has been divided into 4 regions: metropolitan, regional cold, regional mild and regional hot and this affects the number of VEECs you can receive. You can find a list of postcodes and regions here.
6. Do I need to be registered with the ESC to create VEECs?
No. Green Energy Trading has registered with the ESC to create VEECs on your behalf so there is no need for you to register.
7. Which products are eligible?
The ESC has created a register of eligible products for water heaters, space heaters, thermally efficient windows, refrigerators and freezers:
http://www.veet.vic.gov.au/Public/Public.aspx?id=Products.
For all other categories the accredited person (i.e. Green Energy Trading) must submit a request for product approval. Speak to Green Energy Trading if you would like products in these categories to be registered.
8. What does Green Energy Trading do with my VEECs?
Your VEECs are collected into parcels of 5,000 - 10,000 and sold on the open market to liable parties. Liable parties include large Victorian electricity and gas retailers who must purchase and surrender certificates in proportion to their acquisitions of gas and electricity or pay a penalty.
9. How does Green Energy Trading make their money?
Green Energy Trading’s VEEC buyback price is based on what we believe we can sell the VEECs for, less a margin to cover our costs and the cost of registering the VEECs. The ESC charges a $1 fee per VEEC which is factored into the price Green Energy Trading offers.
Once Green Energy Trading receives your forms they are processed and submitted to the ESC to be created and once they have been approved we will make payment. The ESC has not yet determined the time this will take.
11. How long do I have to claim VEECs?
VEECs can only be claimed within 6 months of the end of the calendar year in which the system was installed.
12. Which buildings are included?
VEECs can only be claimed on residential buildings, i.e. commercial and industrial buildings are excluded. The residential building does not have to be the primary place of residence and it can be a rental property.
As a client of Green Energy Trading you are required to ensure that your installers comply with the requirements of the VEEC scheme as outlined by the ESC. Installers undertaking prescribed activities must be accredited, meet industry standards/council regulations and provide a certificate of compliance for the work.
14. My customers want more details, what should I do?
Green Energy Trading will soon provide a point of sale VEEC brochure for you to give to your customers which will give an overview of the system and explain their rights and obligations. In the meantime we are happy to take your customer’s phone call about VEECs or they can find more information on the ESC’s website www.esc.vic.gov.au/public/VEET/.
15. What is required as evidence of decommissioning?
For some activities the ESC needs to ensure that the inefficient product that is being replaced will not be used elsewhere. This requires evidence that the system has been decommissioned and removed from the premises wherever practical. For the water heater activities 1A, 1B, 1C, 1D and 3 the following documents satisfy this requirement:
- A receipt from your tip or recycler – Green Energy Trading has provided a receipt you can have completed for this purpose
- A photo of the old system which clearly shows it cannot be used anymore, e.g. it has a large hole in it and has the make, model and serial number written on the back or clearly in the photo or as an attachment
- A certificate of compliance which states that the system has been decommissioned and removed from the premises and how this has been undertaken. If the system has not been removed, the reason why will need to be stated
Green Energy Trading is required to keep this information with your records.
16. When can a VEEC be created?
A VEEC can be created after the relevant activity has been undertaken and only for activities undertaken after the start of the VEET scheme on 1 January 2009.
17. What are the targets for the VEET scheme?
The target for the VEET scheme is to be set for three year periods. For the first three years (2009 – 2011) the target is a total reduction of 8.1 million tonnes of carbon dioxide equivalent. This is approximately equivalent to making 675,000 households carbon neutral for a year. Targets for following periods will be set in the year preceding its commencement.
18. Can I get STCs and VEECs for my solar hot water system?
In some cases you are only entitled VEECs, for others you can get both VEECs and STCs as shown in the following table.
VEEC Category - Installation - STCs - VEECs
1A - Decommissioning electric and installing gas/LPG storage - NO - YES
1B - Decommissioning electric and installing gas/LPG instantaneous - NO - YES
1C - Decommissioning electric and installing electric boosted solar - YES - YES
1D - Decommissioning electric and installing gas/LPG boosted solar - YES - YES
2 - Installing solar retrofit on electric - NO - YES
3 - Decommissioning gas/LPG and installing gas/LPG boosted solar - YES - YES
4 - Installing solar pre-heater on gas/LPG - NO - YES
19. Is this part of the Carbon Pricing Scheme?
Both schemes are ultimately aimed at reducing greenhouse gas emissions. However they are operated independently and have very different requirements and participants.
20. Where can I get more information?
Visit the VEET (ESC) website www.veet.vic.gov.auor contact us at Green Energy Trading on 1300 077 784 or 03 9805 0700.