The Victorian Energy Upgrades (VEU) Project-Based Activities just got a major overhaul – and it’s good news for anyone planning (or already delivering) large energy-saving projects in Victoria.
What’s new?
The Measurement & Verification (M&V) Specifications now include five Specified Measurement Methods (SMMs) designed to fast-track certificate creation and slash project admin:
1. SMM 1 – Weather-normalised whole-of-site electricity: fixed approach for projects where electricity use swings with the seasons.
2. SMM 2 – Weather-normalised whole-of-site gas: the gas equivalent of SMM 1, letting winter-heavy gas users unlock VEECs faster.
3. SMM 3 – Retrofit isolation for non-seasonal motors & rotating equipment: a streamlined path for drives, pumps, compressors and similar kit that run year-round.
4. SMM 4 – Direct measurement of behind-the-meter solar PV: finally, a purpose-built route for solar projects to claim VEECs without complex modelling.
5. SMM 5 – Electrification direct measurement: simplifies fuel-switching projects (e.g. gas-to-electric heat pumps) by focusing on the new electric load rather than old gas data.
Together, these SMMs align PBA even closer with NABERS and international best practice while keeping enough rigour to satisfy auditors.
Why act now?
VEEC prices remain well above long-term averages – trading in the mid-$90s after peaking above $110 late last year. Even with recent volatility, projects are still realising record incentives.
What this means for you
- Existing projects: you may be able to switch to an SMM and cut submission times.
- Planned upgrades: simpler methods reduce risk and bring forward cashflow.
- Solar & electrification: brand-new, purpose-built methods remove historical headaches.
Need help navigating the changes?
Northmore Gordon’s M&V and certificate trading specialists can be accessed via the AMPC Grants Helpline to assist you to:
- Map your project to the optimal SMM,
- Model VEEC revenue under current market pricing, and
- Manage end-to-end compliance and trading.
