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Victoria’s new rental energy standards: a guide for landlords

From 1 March 2027, rentals must meet new minimum standards for heating, cooling, hot water and insulation. What changes, when, and the electrical work behind it.

Energen electrician checking wiring and old insulation in a roof space

At a glance

Victoria’s minimum energy efficiency standards for rentals start on 1 March 2027. Each one is triggered by its own event, such as an appliance failing or a new lease starting.

StandardApplies fromTriggered byWhat is required
Heating1 March 2027When the existing fixed heater fails and can’t be repairedEfficient electric heating in the main living area: reverse cycle rated 2 stars or better for heating, or electric ducted rated HSPF 3.2 or more
Cooling1 March 2027 for new leases; 1 July 2030 for all rentalsStart of a new rental agreement, or a move to month-to-monthFixed, efficient cooling in the main living area: reverse cycle rated 3 stars or better for cooling, or ducted electric rated TCSPF 3.8 or more
Hot water1 March 2027When the existing system fails and can’t be repairedElectric heat pump or electric-boosted solar hot water. Gas can’t be replaced with gas
Ceiling insulation1 March 2027New agreement or month-to-month, where the ceiling has none or only partial insulationR5.0 or better, by a certified installer, after an electrical safety check
Showerheads1 March 2027New agreement or month-to-month4-star WELS showerheads
Draught-proofing1 July 2027New agreement or month-to-monthGaps around external doors, windows and unsealed wall vents sealed

An existing working fixed cooler can stay until it fails.

Where an electrician comes in

  • Before insulation goes in: a licensed electrician must complete an electrical safety checklist and fix any issues within 30 days before installation. We do the check and the fixes.
  • Heating and cooling: we supply and install reverse-cycle systems that meet the star ratings, and the circuits they need.
  • Hot water: a heat pump needs its own circuit. We do the electrical side and work alongside your plumber.
  • Switchboards: older boards often need work before new electric appliances go on. Switchboard upgrades.

Discounts that apply to rentals

Victorian Energy Upgrades discounts are available for rental properties, including replacing gas heating with reverse cycle. Solar Victoria also runs a solar rebate for rental properties. Rebates explained.

Exemptions and records

Exemptions exist where compliance isn’t possible, such as some apartments with central systems, heritage controls or owners corporation restrictions. Keep records showing each standard is met or exempt. Consumer Affairs Victoria has the full rules.

Managing several properties?

Send us the addresses. We check each one and quote property by property, so you can plan upgrades around lease renewals instead of breakdowns.

Sources

  1. Consumer Affairs Victoria: rental minimum energy efficiency standards, a guide for rental providers
  2. Victorian Energy Upgrades: heating and cooling discounts

Last checked 1 November 2026. Rules change; we confirm what applies to you on your written quote.

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