VEEC FAQs

1. What is a VEEC?
2. Who is participating in the VEEC scheme?
3. How many VEECs can I get?
4. What is a VEEC worth?
5. Does it matter where the activity occurs?
6. Do I need to be registered with the ESC to create VEECs?
7. Which products are eligible?
8. What’s the process for claiming VEECs?
9. What does Green Energy Trading do with my VEECs?
10. How does Green Energy Trading make their money?
11. When will I get paid?
12. How long do I have to claim VEECs?
13. Which buildings are included?
14. What are my obligations?
15. My customers want more details, what should I do?
16. What is required as evidence of decommissioning?
17. When can a VEEC be created?
18. What are the targets for the VEET scheme?
19. Can I get RECs and VEECs for my solar hot water system?
20. Is this part of the CPRS or carbon trading scheme?
21. Where can I get more information?

1. What is a VEEC?

2. Who is participating in the VEEC scheme?

The Essential Services Commission (ESC) administers the scheme. Green Energy Trading is participating as an ‘accredited person’ which means they 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 don’t surrender enough certificates they must pay a penalty of $40 per VEEC.

3. How many VEECs can I get?

4. What is a VEEC worth?

VEECs are a commodity traded on the open market, so the VEEC price is subject to change. To find out what we’re currently paying visit our prices 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: www.esc.vic.gov.au/public/VEET/Register+of+Products.htm. 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’d like products in these categories to be registered.

8. What’s the process for claiming VEECs?

First step is to complete your VEEC assignment form and submit this with your evidence of decommissioning (where required). When payment is to be made to a business please also include an invoice to Green Energy Trading for the VEECs + GST, a certificate of compliance and a copy of the invoice to your customer– you need to do this for each claim. We require the certificate of compliance and customer invoice even if we are not paying a business. For space heating activities certificate of electrical safety is required and a floorplan/diagram is also required for activites 6 and 8 only. Send your completed forms to Green Energy Trading.

9. 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.

10. 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.

11. When will I get paid?

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 hasn’t yet determined the time this will take.

12. 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.

13. Which buildings are included?

VEECs can only be claimed on residential buildings, i.e. commercial and industrial buildings are excluded. The residential building doesn’t have to be the primary place of residence and it can be a rental property.

14. What are my obligations?

As a client of Green Energy Trading you’re 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.

15. 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, it will give an overview of the system and explain their rights and obligations. In the meantime we’re 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/.

16. What is required as evidence of decommissioning?

For some activities the ESC needs to ensure that the inefficient product that’s being replaced won’t be used elsewhere. This requires evidence that the system has been decommissioned and removed from the premises where practicable. For the water heater activities 1A, 1B, 1C, 1D and 3 the following documents satisfy this requirement:

1. A receipt from your tip or recycler – Green Energy Trading has provided a receipt you can have completed for this purpose
2. A photo of the old system which clearly shows it can’t 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.
3. 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. 

17. 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.

18. 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.

19. Can I get RECs and VEECs for my solar hot water system?

In some cases you are only entitled VEECs, for others you can get both VEECs and RECs as shown in the following table.

20. Is this part of the CPRS or carbon trading scheme?

Both schemes are ultimately aimed at reducing greenhouse gas emissions. However they’re operated independently and have very different requirements and participants.

21. Where can I get more information?

Visit the ESC’s website www.esc.vic.gov.au/public/VEET/ or contact us at Green Energy Trading and we can set you up to start claiming VEECs; This e-mail address is being protected from spambots. You need JavaScript enabled to view it , 03 9805 0700.