Victoria’s minister for energy and resources Lily D’Ambrosio announced Wednesday a $1.5 million investment to help businesses cut their energy bills by transitioning from gas intensive appliances to efficient electric alternatives.
Designed to help businesses cut their energy bills, future proof their operations, and reduce their emissions, the Allan Labor government announced the Large Energy User Electrification Support Program which will provide financial aid to help wean businesses off gas.
The Large Energy User Electrification Support Program will provide up to $60,000 per site – or $66,000 for regional sites – that use between 10-100 terajoules of gas per year to undertake a feasibility study to identify ways to cut gas usage by replacing old gas-powered equipment with efficient electric alternatives.
The results of the feasibility studies will help businesses to identify energy efficiency upgrades available through the Victorian Energy Upgrade (VEU) scheme, which includes discounts on hot water systems, furnaces, ovens, dryers, and similar appliances.
Already the largest energy efficiency upgrade program in Australia, the Victorian Budget for 2024/25 has invested a further $5.9 million to continue helping Victorians electrify their homes and businesses.
The VEU program has helped over 170,000 businesses and 2.4 million households upgrade their appliances and equipment since it commenced in 2009 and helping to reduce Victoria’s emissions by more than 84 million tonnes.
As one example of the benefits the VEU can have for businesses, the Allan Labor government highlighted the results for two organisations. The Ellinbank Dairy Research Farm, for example, Australia’s leading dairy research facility, installed a 26-kilowatt heat pump which reduced their energy usage by 33 per cent and cut their gas bill by $5,000.
Similarly, the Kardinia Aquatic Centre in Geelong installed a 400kW heat pump which is now saving the Centre around $200,000 a year.
“Industry uses about 30 per cent of Victoria’s gas which is why it’s essential we support businesses to upgrade their facilities, future-proof their operations and reduce their operating costs,” said Lily D’Ambrosio.
