Commercial Solar Rebates Victoria: Understanding Deemed VEECs for Business Solar Projects
Learn how deemed VEECs apply to commercial solar systems in Victoria. Understand eligibility requirements, available rebates, STCs, LGCs and how certificate incentives can reduce project costs for businesses.
Eligible commercial solar systems between 30kW and 200kW can now access deemed Victorian Energy Efficiency Certificates under the Victorian Energy Upgrades program.
This article explains how deemed VEECs apply to commercial solar projects in Victoria, how they work with other certificate schemes, and what businesses should consider before proceeding with a system.
What Are VEECs?
Victorian Energy Efficiency Certificates, commonly known as VEECs, are electronic certificates created under the Victorian Energy Upgrades program.
Each VEEC represents one tonne of greenhouse gas emissions reduction from an approved activity.
VEECs are created by accredited providers when eligible activities are completed. Energy retailers purchase and surrender these certificates to meet their obligations under the program.
What Are Deemed VEECs?
A deemed VEEC activity uses a standard calculation method to estimate the emissions reduction from an eligible upgrade.
For commercial solar, this means eligible systems between 30kW and 200kW can create VEECs without needing to use a project-specific measurement and verification process.
The new process means the value of the Deemed VEECs is claimed upfront and taken off the project cost and claimed upon completion. This benefits both the client and the installer.
Deemed VEECs provide a simpler process to access the rebates for eligible commercial solar projects compared with the previous Project-Based Activities pathway.
How Deemed VEECs Apply to Commercial Solar
Under the new VEU activity, eligible non-residential solar systems between 30kW and 200kW can create deemed VEECs.
The value of the VEECs can be applied as an upfront discount on the project cost.
The business does not need to separately create, sell or trade the certificates. The accredited provider manages the certificate process as part of the project.
Which Businesses May Be Eligible?
The deemed VEEC activity applies to non-residential premises in Victoria.
Eligible sites may include:
- Commercial buildings
- Warehouses and logistics facilities
- Manufacturing sites
- Retail centres
- Schools and universities
- Hospitals and healthcare facilities
- Aged care facilities
- Local government buildings
- Community facilities
- Sporting and recreation facilities
Residential properties are not eligible under this commercial solar activity.
Solar System Qualifying Requirements for Rebates
To qualify for deemed VEECs, the solar system must meet program requirements.
These include:
- Solar PV capacity between 30kW and 200kW
- Minimum inverter capacity of 30kVA
- Installation at an eligible non-residential premises
- Approved solar panels and inverters
- End-user accessible monitoring
- Network connection approval
- Installation through an accredited VEU provider
Additional technical and compliance requirements may apply. Businesses should confirm current eligibility requirements with an accredited commercial installer before commencing works.
How VEECs Work With STCs and LGCs
Deemed VEECs can apply alongside existing federal renewable energy certificate schemes.
| System Size | Eligible Certificate Schemes |
|---|---|
| Up to 100kW | Deemed VEECs and Small-scale Technology Certificates |
| Between 100kW and 200kW | Deemed VEECs and Large-scale Generation Certificates |
The applicable certificate type depends on system size and project eligibility.
Case Study: Deemed VEEC Project
Project: Commercial Solar and Battery System
The case study data is from a Melbourne Energy Group project in the agricultural sector operation in semi-rural Victoria.
The project provides a useful example of how deemed VEECs can work with other certificate discounts on a commercial energy project.
Project Snapshot
| Item | Details |
|---|---|
| Site type | Agriculture operation |
| Location | Semi-rural Victoria |
| Solar PV system | 96kW |
| Battery storage | 100kWh |
| Estimated annual solar generation | 122,919kWh |
| Estimated annual site consumption | 124,462kWh |
| Solar panels | 160 × 600W JA Solar panels |
| Inverters | 2 × Sungrow SH25T hybrid inverters |
| Battery system | Sungrow SBH250 |
| Monitoring | Solar Analytics |
Certificate and Incentive Breakdown
This project was applicable for STCs and VEECs. The introduction of both rebates significantly improved the financial viability and ROI of the project. The introduction of VEECs does not affect the STCs volume or values in the project.
- Solar System: STCs and VEECs
- Battery Storage: STCs
This example shows how deemed VEECs can form part of a broader incentive structure. The final outcome of any project will depend on system design, site electricity use, certificate values, installation costs and program eligibility.
Commercial Outcomes to Assess
Businesses considering commercial solar should assess the project against their site requirements and electricity use.
Common assessment areas include:
| Outcome | What to Assess |
|---|---|
| Upfront cost | How certificate incentives affect the installed price |
| Electricity use | How much solar generation can be used on site |
| Operating costs | Expected reduction in grid electricity purchases |
| System size | Whether the system is within the 30kW to 200kW deemed VEEC range |
| Battery storage | Whether battery storage is required for the site load profile |
| Monitoring | Whether the system provides access to performance data |
| Network connection | Whether export limits or connection requirements apply |
Considerations for Commercial Solar Projects
The suitability and performance of a commercial solar system will vary between sites. During the assessment and design process, a qualified commercial solar provider will typically review a range of factors to determine the most appropriate system design and confirm project feasibility.
Electricity Consumption
Understanding how and when electricity is used is an important part of system design. Electricity consumption patterns can influence system sizing, expected self-consumption and the overall performance of the solar system.
Future Energy Requirements
Planned changes to site operations may affect future electricity demand. This can include electric vehicle charging infrastructure, electric hot water systems, heat pumps, equipment upgrades or facility expansion.
Roof and Site Conditions
Available roof space, roof condition, shading, building orientation and site access can all influence system design and installation requirements.
Network Requirements
Grid connection requirements, export limits, metering arrangements and distribution network approvals should be assessed during project planning, as these can affect both system design and project timelines.
Monitoring and Performance Reporting
Commercial solar systems typically include monitoring platforms that provide visibility of system performance and energy generation. For projects accessing deemed VEECs, end-user accessible monitoring is also a program requirement.
Discuss Your Project with Melbourne Energy Group
Melbourne Energy Group works with the commercial and industrial sector, aged care, education, councils and community organisations to identify applicable Federal and State incentive programs and assess how these incentives may apply to renewable energy projects.
Our team can provide a feasibility pack, including Solar, Battery and EV Charging, rebates, and finance options.
