FreshDuctThe Victorian ceiling insulation rebate: what you will really pay
Since 1 October 2026, Victorian homes with little or no ceiling insulation can get a discount through the Victorian Energy Upgrades (VEU) program. It is real, but it is smaller than most ads suggest once you add the required electrical safety assessment, any removal of old insulation, and the rules. Here are the honest numbers, so you can decide.
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How the discount really works, in under two minutes
Sound on for the voiceover. Prefer to read? Everything in the video is explained below.
Video transcript
- Heard you can get $1,500 off your ceiling insulation? Here’s how it really works.
- First, it’s a discount, not a rebate. Our accredited partner creates energy certificates, and the discount comes off your quote before any work starts. You still pay at least $200.
- Now, check your roof. Old insulation sitting below the joists, under 90 mm? You may qualify. 90 mm or more? You don’t. And pulling it out won’t change that.
- Every downlight has to be rated to be covered. Old halogens get replaced first, at your cost.
- Step one is an electrical safety check by a licensed electrician. It’s $346.50, including GST. We book it for you, and the discount doesn’t cover it.
- Your discount depends on just two things: your ceiling size, and your postcode. A 150 m² Melbourne home gets about $1,470.
- So, compare. A standard install: about $5,300. The VEU way, safety check included: about $4,300. But if old insulation has to come out, removal isn’t discounted, and VEU ends up costing you more.
- And the VEU way adds steps before work can start. An electrician’s check you pay for first, any fixes it finds, the owner’s signed consent, and notice to the regulator.
- Install day is done properly. Power isolated, safety gear on, R5.0 batts across the whole ceiling, and photos to prove it.
- Quote it both ways, then decide. Call FreshDuct on 04 3191 8137.
The short answer
Six things to know before you call anyone
A discount, not a rebate you claim
m²A fixed amount, not a percentage
1stElectrical safety assessment first
0Removal and repairs get nothing
90Thick old insulation rules you out
$200It is never free
Each point is explained in full further down the page.
How it works
Where the discount money comes from
It is not a government payment. Energy retailers are required by law to fund energy savings. Your insulation job creates certificates, they buy them, and that money comes off your quote before work starts.
- You sign over the certificatesYou, the homeowner, assign them to the accredited provider.
- The provider creates themAn accredited provider, approved for ceilings, creates them with the job evidence.
- The regulator registers themThe Essential Services Commission.
- Energy retailers pay for themThey must meet legal targets.
- Discount off your quoteBefore any work starts.
One certificate = one tonne of greenhouse gas saved over the insulation’s 25-year life. Certificates trade at market prices, so the discount moves a little over time.
Eligibility
Is your home eligible? Check in 30 seconds
All six need to be a yes. Income, concession cards and your heating type do not matter.
A Victorian home, right under the roof?
A house, or a top-floor unit. Ceilings with another storey above don’t count.
Built or renovated more than 5 years ago?
The ceiling can’t be new or part of a recent renovation or extension.
Little or no insulation now?
Nothing, foil only, or a thin layer under about 90 mm.
No halogen downlights?
Every ceiling light must be a type rated to be covered (IC or IC-4).
No VEU ceiling insulation here since April 2026?
Each home can get one ceiling upgrade under the program.
The owner agrees in writing?
Renters can apply with the owner’s written consent.
Check your roof space
The 90 mm test
If the old insulation sits below the top of the ceiling joists, it is probably under R2.0, and the home can qualify. If thick batts sit well above the joists, it probably can’t.
Under about 90 mm
Below the top of the joists, or nothing at all. You may qualify.
90 mm or more
Not eligible. Removing it doesn’t change that.
The regulation’s own guide: R2.0 is less than 90 mm of uncompressed insulation, lower than a standard ceiling joist.
- Stay on the manhole ladder. Don’t walk on the ceiling; plaster won’t hold you.
- Take three photos: a wide shot with a torch, a tape measure standing in the insulation, and a downlight.
- Don’t touch wiring. If you see old fibrous sheeting or sprayed fluff, stop and tell us.
The maths
What would you really pay, with and without VEU?
Only two things set the number of certificates: the area of new insulation and your postcode’s climate zone. R5.0 vs R6.0, your heating and your income make no difference. The calculator then compares the VEU route, with its assessment and extra steps, against a standard install.
Estimate only. Wiring repairs and downlight swaps found by the electrical assessment are extra and earn no discount. Your exact price and discount are on your written quote.
Two ways to insulate
Standard install or the VEU route?
Both get you a properly insulated ceiling. The VEU route can cost less when your ceiling is nearly empty, but it adds steps, and one cost you pay before you know you qualify. Here they are side by side.
| Compare | Standard install | VEU route |
|---|---|---|
| A nearly empty ceiling, 150 m², Melbourne, R5.0 | $5,280 | $4,322 (about $958 less) |
| Old insulation has to come out first | $5,280, removal included | $7,292, removal is never discounted |
| Before work can start | Book a date | Electrical safety assessment, then any fixes it finds, then the owner’s written consent at least 24 hours before, then the regulator is notified 1 to 5 days before |
| Paid up front, before eligibility is confirmed | Nothing | $346.50 for the electrical safety assessment |
| Old halogen downlights | We insulate around them with the safe clearances the standard requires | They must be replaced first, at your cost |
| Products | Any suitable batts | Only products on the VEU register, R5.0 or more in total. No blow-in. |
| Paperwork | Quote and invoice | Contract, certificate assignment form, owner’s consent and the VEU fact sheet. We photograph and video your ceiling before and after. |
| Usually best for | Most homes | Nearly empty ceilings, nothing to remove, modern downlights |
Example prices incl. GST at FreshDuct’s rates. Your quote will differ. VEU figures assume about $70 per certificate.
Our rates. Standard install: from $32/m² (R5.0) or $35/m² (R6.0) + GST, removal of old insulation included where needed. VEU route: from $33/m² (R5.0) or $38/m² (R6.0) + GST, plus removal at $18/m² + GST if needed, minus about $70 per certificate.
A standard install also means: no program assessment — our installers do their own safety check and tell you if an electrician is needed; any R-value you choose, including a top-up over suitable existing insulation; and it suits homes that don’t qualify and part-ceiling jobs. The VEU route suits homes with little or no insulation, modern lights, and a ceiling big enough for the discount to outweigh the extra steps.
Rule of thumb: the VEU route pays off when your ceiling is nearly empty and needs no removal. If old insulation has to come out, or halogen lights need replacing, a standard install is often cheaper overall. Use the calculator, or ask us and we will quote both. More on our standard ceiling insulation service.
A standard install is usually better if:
- old insulation has to come out
- you have halogen or older downlights
- you’d rather have fewer steps
- you want blow-in or a product that isn’t on the VEU register
The VEU route may be worth it if:
- the ceiling is empty, foil only, or under about 90 mm
- nothing needs removing
- your downlights are already rated to be covered (IC or IC-4)
- you’re happy with the extra steps
Not sure? Send us three photos first.
A wide shot of your roof space, a tape measure standing in the insulation, and one downlight from above. We’ll tell you which route is likely to cost you less before you pay for anything, then quote it.
Price-beat guarantee
Got a VEU insulation quote? We’ll beat it.
Send us any written ceiling insulation quote from another installer, VEU or standard. If it’s for the same job, we’ll beat the price, in writing, before any work starts.
- Send us the quoteA photo or PDF of the written quote is fine. Add roof-space photos if you have them.
- We check it’s like-for-likeSame ceiling area, same R-value, and the same removal and electrical work included.
- We beat it, in writingYou get our lower price on a written quote before anything is booked.
The fine print, in plain words
- The quote must be in writing, current, and from a business that installs ceiling insulation in Victoria.
- It must be for the same job: the same area, R-value and type of product, with the same removal, electrical and access work included.
- VEU quotes must follow the program rules: at least $200 paid by you, an accredited provider and the electrical safety assessment. We can’t match offers that break the rules, such as “free insulation” or covering your $200.
- We beat the total price you would pay, not a single line of it.
- Send it before your install is booked with anyone. Once work is booked or done, the price is set.
Old insulation
The discount never applies to removal
Certificates are counted only on new insulation. And removing insulation to get under the line does not make a home eligible: eligibility is judged on what is in your ceiling before work starts, and it is photographed and measured. Two 150 m² homes in metro Melbourne get exactly the same discount. The home that needs its old insulation removed pays far more, and the discount covers far less of it.
Install R5.0 only 27% off
$5,445 incl. GST
Remove + install R6.0 16% off
$9,240 incl. GST
Same discount, very different jobs. Drawn to scale. 150 m², metro Melbourne, about 21 certificates at about $70 each. Job prices at FreshDuct’s VEU-route rates incl. GST. On top of both: the electrical safety assessment ($346.50 incl. GST) and any repairs it finds.
Old insulation must come out anyway if it is foil or metallic, damp, dirty or damaged, or if new batts can’t be laid safely on top. Sprayed loose-fill can contain asbestos: if in doubt, it is tested first.
Step one for the VEU route
The electrical safety assessment
Before any VEU insulation job, a licensed electrician must inspect your ceiling, no more than 30 days before the install. It costs $346.50 incl. GST ($315 + GST) and we can book it for you. It is required by the program, it is not covered by the discount, and if it finds a hazard, the job waits until it is fixed.
The electrician’s check → three possible outcomes
No issues
The install goes ahead. The report is shared with you 24 hours before.
Hazards found
Halogen lights, old or damaged cables, no RCD. Fixed first, with a safety certificate. Extra cost.
Power cannot be isolated
An electrician comes back on install day to switch off and lock out. Extra cost.
It also checks life-support equipment, solar and battery isolation, and fans, flues and heat lamps in the ceiling. Anyone going into the roof after the check can void it.
What you are paying for
R5.0 and R6.0, side by side
R5.0 is the minimum the program accepts. R6.0 performs better and costs more. The discount is exactly the same for both.
Batt thickness in mm, from manufacturer data and retail listings. The new layer must reach R5.0 or more in total.
- Batts only. Blow-in loose-fill, cellulose and foil products are not allowed under the program.
- Registered products. Every product must be certified and on the program’s product register, with at least a 5-year warranty.
- Materials alone for 150 m² cost roughly $1,900 to $3,000 at retail prices, before any labour.
Why a proper job costs what it does
What the rules require on every job
The six things every compliant job includes
Certified installers
Every installer certified by the Energy Efficiency Council, with a lead installer on site all day.
Fall protection
A fall through a ceiling is high-risk work: crawl boards, barriers, lighting, and edge protection where needed.
Power locked off
Mains, solar and batteries switched off and locked before anyone enters the roof.
Heat safety
Roof spaces get extremely hot. Early starts, teams of two, and postponed work on extreme days.
The whole ceiling
Every eligible, practical space gets done. Clearances kept around lights, fans and flues.
Evidence
Geo-tagged photos and before and after 360° video, kept for 6 years and open to inspection.
From enquiry to install
The steps, in order
The paperwork has to happen before the job. Nobody can claim the discount after the work is done.
- PhotosA quick check from your photos.
- AssessmentOn site.
- QuoteDiscount shown, contract signed.
- Electrical check$346.50 incl. GST, within 30 days before the install.
- Install dayPower locked off, photos and video.
- Close-outInvoice, forms, 5-year warranty.
Your invoice shows the full price, the VEU discount and what you paid. The job is notified to the regulator 1 to 5 days before it happens.
Landlords and renters
Rentals will need ceiling insulation from 1 March 2027
At the start of a new lease, any part of a rental ceiling with no insulation must get R5.0, installed by a qualified professional. Landlords can use the VEU discount now. Renters can apply with the owner’s written consent.
Protect yourself
Five red flags
Door-knocking and cold calls about the program are banned unless you asked to be contacted. If someone turns up unannounced offering free insulation, close the door.
“Free insulation”
Everyone pays at least $200 by law. A free offer breaks the program rules.
A knock at the door
Door-knocking and cold calls about VEU are banned unless you asked to be contacted.
“Claim it later”
The discount must be on your quote before work starts. It can’t be claimed afterwards.
“We’re from the government”
Providers are private businesses. Nobody may claim to work for the program or the government.
“We’ll cover your $200”
Refunding or covering your contribution in any form is against the rules.
Questions
Common questions
Is it a rebate?
Not really. It is a discount taken off your quote before work starts, not money you claim back afterwards. Many people call it a rebate.
Does it cover underfloor or wall insulation?
No. Only ceilings. Underfloor insulation was removed from the program on 14 April 2026, and walls were never included. We still insulate both, at full price.
Does my heating type matter?
No. Gas, electric or none, the discount is the same.
Will R6.0 get me a bigger discount than R5.0?
No. The number of certificates depends only on the area insulated and your postcode.
I rent. Can I still get it?
Yes, with the owner’s written consent. From 1 March 2027, rental homes starting a new lease must have ceiling insulation (R5.0) wherever there is none.
My home was insulated years ago. Can I get it again?
One ceiling upgrade per home has been allowed since 14 April 2026. Older insulation only matters through the 90 mm test: if it is still R2.0 or more on average, the home does not qualify.
What does the electrical safety assessment cost?
$346.50 incl. GST ($315 + GST). A licensed electrician inspects your ceiling wiring, lights and switchboard. It is required for every VEU ceiling job, it must happen within 30 days before the install, and the discount does not cover it. We can book it for you. If it finds a hazard, the repair is quoted separately.
What if the electrical assessment finds a problem?
The hazard has to be fixed before any insulation goes in, for example replacing halogen downlights or old cabling. Our licensed electricians can quote the repair. You can then go ahead with the VEU discount, or choose a standard install.
Do I have to use the VEU discount?
No. You can choose a standard install at our normal rate. There is no program assessment or paperwork, you can pick any R-value, and it is usually quicker to book. We are happy to quote both ways.
Is the discount taken off removal of old insulation?
No. Certificates are counted only on the new insulation. If your old insulation has to come out, you pay for the removal in full. And removing thick insulation does not make a home eligible.
Can you give me a price over the phone?
Yes. Send us your postcode, the rough size of your home and three photos of your roof space, and we can talk you through it and give you a quote. If you want us to see it in person, book an assessment.
How long does it take?
On the VEU route, the electrical safety assessment has to happen within 30 days before the install, the owner signs consent at least 24 hours before, and the job is notified to the regulator 1 to 5 days ahead. A standard install doesn’t need these steps. Your quote lists the steps for your home, in order.
Find out for your home
Get a quote or book an assessment
We quote it both ways, with and without the VEU discount, so you can decide with the real numbers. We arrange the discount through our accredited installation partners.
Have these ready
- Your postcode and the rough size of your home in m²
- Three photos: the roof space from the manhole, a tape measure in the insulation, a downlight
- Whether you own the home or rent it
Costs to expect on the VEU route
- Electrical safety assessment ($346.50 incl. GST), before anything else
- At least $200 towards the job, by law
- Removal and electrical repairs at full price
FreshDuct is a private business. The Victorian Energy Upgrades program is voluntary. Figures are approximate and the minimum contribution is $200.
Send your details
Get a quote or book an assessment
Photos of your roof space help us quote faster. We call you back to talk it through.