C&I Heat Pump Water Heating - Response to Consultation - 30 September 2021

Following the Victorian Energy Upgrades (VEU) Commercial and Industrial Heat Pump Water Heating (C&I HPWH) Consultation, the Department of Environment, Land, Water and Planning (the department), has published the C&I HPWH - Response to Consultation outlining the department’s response to stakeholder feedback.

A total of 24 stakeholder submissions were received through the consultation. Stakeholders provided valuable feedback on the proposed activity and the department thanks those who provided input.

The department has considered stakeholder feedback and has made decisions on the proposed C&I HPWH activity. The response to consultation outlines these decisions, which include:

  • the department will progress the development and implementation of a VEU C&I HPWH activity.
  • the department will adopt TRNSYS as the simulation tool for the purposes of the activity.
  • the department will deploy measures to address barriers and potential undesired outcomes.
  • the department will adopt the ‘accurate electricity emissions factors’ for the activity, reflecting a faster reduction in electricity emissions factors to 2025.

Next steps

The department will finalise the Regulations and Specifications for C&I HPWH upgrades. This will be an eligible activity under the VEU program and accredited providers will be able to create certificates from the commencement date of the new activity, which will be set out in the revised Specifications before the end of 2021. The department will also continue to work with stakeholders to ensure fit-for-purpose uptake of this new activity through industry support and capacity building.


The Department of Environment, Land, Water and Planning have been working together with the Department of Primary Industries and Environment in NSW to identify and further investigate opportunities for achieving energy and emissions savings through installation of heat pump water heaters (HPWHs) at commercial and industrial premises across Victoria and NSW. We have worked together to create activities for the VEU program and the Energy Saver Scheme (ESS) that are as similar as possible in order to harmonise requirements and make compliance simpler for stakeholders.

The purpose of this consultation is to share our thinking, to set out options to introduce the installation of HPWH at commercial and industrial premises as an activity in the VEU program, and to seek the views of interested stakeholders.

How to participate

A consultation paper has been prepared to facilitate greater understanding of our work so far and the proposed activity. Key questions are raised throughout the consultation paper on which we seek your feedback. Please submit your responses using the Engage Victoria web page.

Next steps

Your feedback will be used to assist us in making decisions around the final form of the proposed activity, and to identify potential issues or risks which the activity may introduce. Please note that this page cannot be saved prior to submitting. DELWP advises that you answer questions in a separate document and copy them into relevant fields to submit when you have finished.

Privacy collection notice

The department is committed to protecting personal information provided by you in accordance with the principles of the Victorian privacy laws. The information you share with us in your responses will be used only for the purpose of this consultation. We will also share your submission with the Essential Services Commission, who regulate and administer the VEU program, and with the NSW Energy Savings Scheme, with whom we have worked to develop the subject matter of this consultation. Where you choose to provide personal information, the department may use it to provide you consolidated feedback in the submissions we receive or to seek clarification on your submission.

Information you provide may also be published as part of reporting back on the consultation, however the department will not disclose any information without your consent. All fields on this form relating to personal information are optional.

You may access the information you have provided to the department by emailing:


More information about DELWP’s privacy policy is available via the link below: