The Victorian government has slashed insulation costs to help homeowners reduce their energy bills by $400 per year.
From early 2026, Victorians can access discounts on ceiling insulation through the Victorian Energy Upgrades (VEU) program.
Premier Jacinta Allan and Minister for Energy and Resources Lily D’Ambrosio made the announcement earlier today.
The VEU discount will halve the average ceiling insulation install costs of $3,000 to $1,500, based on current certificate prices.
Almost 60 percent of homes in Victoria either have no ceiling insulation or are under-insulated.
“These households are missing energy bill savings of more than $400 per year on average,” Alan said.
“The estimated 200,000 households with no insulation will be eligible for the first stage of the discount, with those wanting to top-up becoming eligible later.”
D’Ambrosio also announced new safety and quality standards for installations.
She said the program will include an insulation safety and quality assurance regime including audits and oversight requirements.
“This will make sure that only high-quality products are used – including Victorian-made insulation, and ensure installers are well-trained,” D’Ambrosio said.
Solar Victoria will work with industry, unions, training organisations and safety regulators on the implementation, with consultation kicking off today. Solar Victoria will also work with the Energy Efficiency Council to train, certify and expand the insulation installer workforce.
To date, the VEU program has helped more than 170,000 businesses and 2.4 million households upgrade their appliances and equipment, slashing more than $440 million dollars off energy bills.
“The addition of insulation will help reduce emissions, support local manufacturing, and improve the energy efficiency of homes,” she said.
The Insulation Council of Australia and New Zealand (ICANZ) welcomed the insulation rebate.
Insulation Council CEO, Janine Strachan said Victoria is leading by example.
“This is something the Insulation Council has been advocating for with all states, territories and federally as the Minister has said it will halve the cost of installing ceiling insulation for an average home from $3,000 to $1,500 based on current prices,” she said.
Strachan also praised the new insulation safety and quality assurance regime including audits and oversight requirements.
“We would like to see the federal government follow Victoria’s example and offer rebates for insulation retrofits to improve the thermal envelope of residential buildings and assist households to cut energy consumption and save money,” Strachan said.
Insulation works by acting as a barrier to heat flow, making homes more comfortable year-round, reducing energy consumption, and lowering heating and cooling costs.