VEECs: The Who, What, Where and Why

The VEECs Rabbit Hole: What to Know When Getting a Heat Pump

Meet John Smith, a homeowner pondering the replacement of his aging gas hot water system. As he delved into the world of alternatives, the concept of VEECs—Victorian Energy Efficiency Certificates—seemed to dance across every energy-efficient solution he explored.

But what exactly are VEECs?

In the realm of energy efficiency, VEECs are like golden stamps of approval, tokens earned when one opts for greener, more efficient choices. They’re generated when accredited entities undertake energy-saving initiatives, such as swapping out outdated systems for more efficient ones like heat pumps. The more energy a new system saves or the fewer greenhouse gases it emits, the more VEECs it generates.

Now, not all units are created equal in the VEEC world. Efficiency reigns supreme. Enter the iStore, a state-of-the-art heat pump water heater that takes efficiency to a whole new level. This stellar unit qualifies for a whopping 7 VEECs, a testament to its remarkable energy-saving capabilities. This enables Lightning Energy to sweeten the deal, offering enticing discounts on the iStore 270 heat pump systems.

Behind the scenes, VEECs wield their magic not just as efficiency tokens but as a means for energy retailers to fulfill their obligations outlined by the Victorian government. These retailers, mandated to invest in renewable energy initiatives, flock to acquire VEECs from those undertaking energy-saving endeavors. With each VEEC purchased, retailers contribute to the shift toward greener, more sustainable energy practices, aligning with governmental mandates while incentivizing homeowners like John to embrace energy-efficient solutions. It’s a unique synergy where every VEEC purchased represents an investment in a cleaner, more sustainable future—one shower, one load of laundry, one iStore heat pump at a time.

John, on his quest to cut energy bills while embracing sustainability, discovered the iStore 270L unit. With a mere 5kWh to heat the tank, this beauty slashed his water heating expenses by over 50%. But John’s savvy didn’t stop there. Eager to seize every opportunity for savings, he applied for the Vic solar hot water rebate, snagging an extra $1,000 off the purchase.

Not content with stopping there, John aimed for maximum savings. He opted to sell his STCs (Small-scale Technology Certificates) through Lightning Energy, further reducing the cost of his chosen heat pump. Despite a looming deadline for the STC price drop on January 1st, 2024, John signed his agreement in 2023, securing the better STC price, thanks to Lightning Energy’s commitment to honor the original agreement.

Now, let’s crunch the numbers. John’s household of four, taking four 15-minute showers daily and washing clothes in cold cycles, projected an annual cost of $1515 for the gas storage unit. With the iStore Heat Pump coming in at an estimated $558 per year to operate, John’s payback period for his system is under 5 years—a testament to the efficiency and cost-effectiveness of his choice.

In the end, John’s journey wasn’t just about upgrading his water heating—it was a testament to making informed choices for sustainability, seizing available rebates, and aligning with a partner like Lightning Energy who prioritized his savings and commitment to a greener future.