Size limits to apply to appliances swapped out in Victorian Energy Upgrade program

The size of appliances available under the government’s energy efficiency upgrade program is set to be limited to crack down on a green rort.

Size limits will be introduced to the installation of new electric water heaters and air conditioners in an effort to stop rorting of the state’s carbon credits scheme.

Under changes being considered by the Essential Services Commission, installers will need to follow guidelines tailoring the size of these appliances to the size of each room or household.

A typical loungeroom would require a 4KW to 6KW system while a three-bedroom home would need an electric water tank sized between 225L and 300L.

If businesses don’t follow these rules, they are set to miss out on the lucrative carbon credits that can be claimed from each installation under the Victorian Energy Upgrade (VEU) program.

Size limits will be introduced on appliance upgrades to stop rorting of carbon credits.

The changes follow the Herald Sun revealing wide spread rorting of the program where fridges were being dumped on businesses as installers looked to harvest lucrative carbon credits.

Under the program, approved businesses receive clean energy credits every time they install a more energy-efficient appliance.

Electricity retailers are required to buy thousands of these credits off an open market each year in order to meet annual emission targets set by the government.

Often sold at $70 a credit, installers can use this income to offer Victorians the improved appliances at low or no cost.

The ESC is now considering new rules for hot water and space heatings as it braces for a massive surge in customers claiming rebates to move their gas-powered homes to electric systems.

Making more households electric is a key environmental target for the Andrews government and rising gas prices are pushing more Victorians to seek cheaper electric appliances.

Documents published for public consultation show the size of these appliances are a key issue for the scheme.

“Issues can arise when reverse cycle air conditioners are either undersized or oversized,” they say.

The surge in gas prices is prompting households to switch out appliances which use the fuel.

“Undersized airconditioners may not effectively heat or cool a home, whereas oversized reverse cycles reduce energy and emissions savings.

“As ducted gas heating is the main form of residential heating in Victoria (found in around 60 per cent of homes), it is important that consumers do not experience an unexpected or unwanted reduction in heating or cooling due to an upgrade having insufficient heating and cooling output or coverage.”

Installers will be required to tell Victorian homes what the size limits are and report to the commission whether their customers have followed the rules.

If they do not, they may not have their carbon credits approved.

The VEU program came under fire last year when a loophole in the system meant dozens of fridges were being dumped outside businesses by dodgy installers.

The credits awarded delivering new displays fridges were so high that companies were ordering in bulk from overseas and giving away dozens of appliances to anyone who showed interest in them.

This allowed them to claims thousands of dollars without proving that they had reduce emissions and led to widespread dumping.

Each carbon credit, known as Victorian Energy Efficiency Certificates, is meant to represent a tonne of greenhouse gas emissions saved.