For commercial & industrial manufacturers

The certificate schemes pay for a large share of a commercial heat pump

In Victoria (VEU Activity 44) and NSW (ESS Schedule F), a 10–200 kW commercial heat pump water heater earns deemed certificates worth tens to hundreds of thousands of dollars, especially when it replaces electric. Here is the opportunity, drawn from 177 systems we have modelled under AS/NZS 4234.

How the VEU and ESS schemes work for commercial heat pumps

Both are deemed-savings schemes: a product is modelled once, registered, and then every installation creates tradeable certificates that offset the system cost. The schemes target the emissions displaced, so the business case is strongest where a heat pump replaces electric resistance heating.

Replacing electric pays most

Decommissioning electric resistance heating carries the full emissions-factor credit, so it earns the highest certificate count — typically 2–3× a gas replacement of the same size.

Two markets, one model

A product modelled once under AS/NZS 4234 can register for both VEU (VIC, VEECs) and ESS (NSW, ESCs). The NSW scheme typically yields the larger certificate count per system.

Design captures the upside

Identically-sized systems legitimately earn 2–3× different certificate counts depending on control logic, setpoints and COP curve. Good modelling captures the top of the range.

Typical certificate values, replacing electric

Median and P10–P90 range by capacity band, based on a dataset of 177 commercial HPWH systems (10 kW and above) we have modelled under AS/NZS 4234.

Capacity VEEC typical Range (P10–P90) ≈ value
30–75 kW 335 276–509 $28k
75–150 kW 937 636–1,370 $80k
150–300 kW 2,076 1,490–2,859 $176k
300 kW+ 3,966 1,701–5,534 $337k

Dollar figures at $85/VEEC. Gas replacement and new installations earn lower counts (roughly 40–60% of the electric-replace figures). These are estimates for business-case purposes — a registered certificate quantity requires full AS/NZS 4234 TRNSYS modelling of your specific system.

Estimate your system

The estimator below is pre-filled with a typical 200 kW system — adjust the capacity, tank volume and refrigerant to match yours. Results are a typical midpoint and a P10–P90 range, not a single figure.

Estimate, not a lodgement figure. Same-size systems legitimately earn 2–3× different certificate counts depending on design (control logic, setpoints, COP curve). This tool shows a typical midpoint and a P10–P90 range from 3 refrigerants across 177 modelled systems. Good design captures the top of the range. The exact number requires full AS/NZS 4234 TRNSYS modelling.

Combined thermal capacity of all heat pumps. Modelled range 361,163 kW.

Combined storage across all tanks. Modelled range 45919,092 L.

Refrigerant of the heat pump units.

Spot price moves. Default $85.

We don't publish equipment costs. Enter yours to see how much of it the certificate value offsets.

Estimated VEEC range

VEU Activity 44A(ii) — replace electric · ±29% typical error on public inputs

Low (P10)
1,547
$131,495
Typical
1,944
$165,240
High (P90)
2,586
$219,810

A system like this typically earns 1,5472,586 VEECs, worth roughly $131,495$219,810 at $85/VEEC.

At a glance — VEECs by capacity

VEU Activity 44A(ii) — replace electric, CO₂, ~5 L/kW storage. Updates with the toggles above.

CapacityTypical VEECRange (P10–P90)≈ value
20 kW559445743$47,515
50 kW567451754$48,195
100 kW8096441,076$68,765
200 kW1,9441,5472,586$165,240

Estimates use the EnergyAE commercial modelling database (177 systems ≥10 kW) and the regulated VEU Activity 44 and ESS Schedule F equations, scaled across the relevant climate zones (VIC zones 4+5, NSW zones 3+5).

Figures are AS/NZS 4234-validated factors (EEFm 0.393, ElecCCF 1.06, GasCCF 0.47, metro network factor). They are an estimate for business-case purposes only — a registered certificate quantity requires full TRNSYS modelling of your specific system.

From product to certificates

1

Test

Performance tested to EN 14511 / AS/NZS 5125.1.

2

Model

AS/NZS 4234 TRNSYS modelling finds the certificate-bearing load per climate zone.

3

Register

Product registered on the VEU and ESS registers.

4

Create

Each install creates deemed certificates, sold into the scheme market.

EnergyAE handles the full path: testing and certification support, AS/NZS 4234 modelling, and VEU/ESS registration. See our incentive schemes service for the end-to-end offering.

See what your product is worth

Use the estimator above for a quick range, or talk to us about modelling and registering your commercial heat pump for the VEU and ESS schemes.