Knowledge/What earns a certificate/Activity 44 and the $10,000 commercial co-payment
Activity 44 and the $10,000 commercial co-payment
Activity 44 in the Victorian Energy Upgrades (VEU) scheme, listed as Part 44, covers commercial and industrial air source heat pump water heaters. The customer has to pay a minimum co-payment of $10,000 inc GST per installed product. Lead with that on a commercial quote, because it makes this a different conversation from a residential job.
- Part
- 44commercial and industrial
- Minimum co-payment
- $10,000inc GST, per product
- Refrigerant
- GWP under 700global warming potential, same limit as Parts 1 and 3
- Last updated
- 24 Jul 2025commercial and industrial update
What does the customer have to pay?
At least $10,000 inc GST for each product installed. On a site putting in several units, that multiplies.
So in practice Part 44 isn't a small-business activity. It suits sites that use enough hot water for the running cost savings to justify the customer paying $10,000 or more per unit.
The usual co-payment rules apply. You can't pay any of it back to the customer in any form, and it has to be genuinely paid and traceable.
Which refrigerant rule applies?
The refrigerant has to have a GWP under 700, the same limit that applies to home hot water under Parts 1 and 3. The GWP comes from the tables in the Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report, known as AR4. If your refrigerant isn't listed there, it's assessed under the Commercial and Industrial Air Source Heat Pump Water Heater Product Application Guide instead.
That fallback matters more on commercial gear than residential. Commercial heat pumps are where you'll meet carbon dioxide (CO2) and other refrigerants that the AR4 tables for hydrofluorocarbons (HFCs) don't cover.
Why does commercial work lean on the VEU now?
When we checked in September 2026, the federal Energy Efficiency Grants for Small and Medium Sized Enterprises program was closed. So for now, commercial HVAC upgrades in Victoria rely on the VEU's commercial and industrial activities rather than a grant.
If you quote commercial work and you've been waiting for a grant round to reopen, that's where things stand. The VEU is the way in, and Part 44 is its water heating piece.
To be straight with you, the co-payment, the refrigerant rule and the activity title are about all the record gives us on Part 44. The Essential Services Commission (ESC) activity guides have more detail than we've been able to reproduce here.
Not sure which activity your job sits under?
Getting the activity and the scenario right is what sets the money, and you need to get it right before you quote, not after you install.
If you're looking at a job and the answer isn't obvious, ask Kevin.
Who this is for: small and medium HVAC contractors in Victoria. If you're a homeowner after a rebate or a repair, you need a licensed contractor, not us, and yours can point you the right way.
Related
- There's no Victorian Energy Upgrades (VEU) rebate for hydronicA hydronic space heating activity was under consultation in April 2026, and it still isn't claimable. Don't quote a rebate that doesn't exist yet.
- Which Victorian Energy Upgrades (VEU) activities cover HVAC workNobody maps the activity numbers for installers, so here they are. Which one your job sits under, and the one that keeps getting mixed up with lighting.
- Activity 6 categories, 6A to 6H, and their kW bandsEvery Part 6 category with its capacity band, the two that are for business premises only, and the multi-split rule about matching the manufacturer.
- The eleven Part 6 scenarios, and why they set the moneyWhat you take out decides how many certificates a job earns. All eleven scenarios, the caps on four of them, and how long the scheme assumes each lasts.
Review date: 1 January 2027. Figures in this area change without much notice and this page carries some that will go stale. Every number above is dated and sourced so you can check it yourself. If you find something out of date here, tell us and we will fix it.