Premier

Helping Victorian Business Cut Their Energy Bills

15 May 2024

The Allan Labor Government is helping businesses cut their energy bills, future proof their operations and reduce their emissions.

Minister for Energy and Resources Lily D’Ambrosio today announced a $1.5 million investment to support business that use large amounts of gas to undertake feasibility studies on replacing gas intensive appliances with efficient electric alternatives.

The Large Energy User Electrification Support Program will provide up to $60,000 per site – or $66,000 for regional sites that use between 10-100 terajoules of gas per year to undertake a feasibility study to identify ways to cut gas usage by replacing old gas powered equipment with efficient electric alternatives.

The survey will identify bespoke energy efficiency upgrades the business is eligible for through the Victorian Energy Upgrade (VEU), including discounts on hot water boilers, furnaces, ovens, dryers and similar appliances.

Business that upgrade to electric appliances have slashed thousands off their bills - the Ellinbank Dairy Research Farm installed a 26-kilowatt heat pump which reduced their energy usage by 33 percent and slashed $5000 off their bills, while Kardinia Aquatic Centre’s 400kW heat pump is saving them around $200,000 a year.

The VEU program is the largest energy efficiency upgrade program in Australia and through a $5.9 million investment the Victorian Budget 2024/25 it will continue help more Victorians electrify their homes and businesses, slash their power bills and reduce emissions.

Since 2009, the VEU program has helped more than 170,000 businesses and 2.4 million households upgrade their appliances and equipment and reduced Victoria’s emissions by more than 84 million tonnes and will remove a further 21 million tonnes by 2025 – equivalent to taking more than 6.5 million cars off the road for a year.

The Victorian Budget 2024/25 is also investing $5.9 million for a strategic review of the Victorian Energy Upgrades program – ensuring it will be a key driver for helping more Victorians electrify their homes and businesses.

Applications open on 13 May 2024 and will close on 30 September unless funds are exhausted first. For more information visit, energy.vic.gov.au/businesses/victorian-energy-upgrades-businessesExternal Link .

Quote attributable to Minister for Energy and Resources Lily D’Ambrosio

“Industry uses about 30 per cent of Victoria’s gas which is why it’s essential we support businesses to upgrade their facilities, future-proof their operations and reduce their operating costs.”

Quote attributable to Minister for Jobs and Industry Natalie Hutchins

“We’re supporting industry to make the switch to electric – helping them cut their energy bills and reduce their emissions.”

Quote attributable to Member for Thomastown Bronwyn Halfpenny

“We’re supporting businesses to move to cheaper and cleaner electricity – accelerating electrification in the industrial and commercial sectors, creating jobs and reducing costs.”

Quote attributable to Minister for Small Business Natalie Suleyman

“These programs are a key step to helping more businesses realise their electrification potential and reduce their energy costs.”

Reviewed 16 May 2024

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