Energy upgrades funded for 730 Victorian community housing homes

About 730 Victorian community housing homes are set to receive energy-efficiency and electrification work under a new $9 million funding round announced on Friday.

The Victorian Government said seven projects had been selected through the second round of its Community Housing Upgrades Stream. The program pays community housing organisations to improve older homes that can be expensive to heat, cool and run.

Possible work includes reverse-cycle air conditioning, ceiling insulation, draught proofing, heat-pump hot water systems, induction cooktops and rooftop solar.

The government estimates the completed packages could save participating households more than $1,000 a year, although the result for an individual renter will depend on the home, appliances installed, energy use and electricity plan.

Homes will receive packages of work

The program is designed to fund more than a single appliance replacement. Its published guidelines require each participating property to receive at least two eligible upgrades.

That could mean combining insulation and gap sealing with efficient heating, or replacing gas hot water and cooking appliances as part of a broader move to an all-electric home.

Grants can average up to $18,000, excluding GST, for each property across an organisation’s funded portfolio. Providers can distribute the available funding across their homes rather than spending exactly the same amount on every dwelling.

Eligible projects can also use Victorian Energy Upgrades discounts to stretch the grant funding further. Solar cannot be funded twice through overlapping government programs, so providers must choose the appropriate support for each installation.

Why the physical condition of the home matters

Installing an efficient heater can reduce running costs, but its benefit is limited if warm air escapes through an uninsulated ceiling or gaps around doors and windows.

The funded menu therefore includes improvements to the building itself as well as appliances. Insulation and draught proofing can help a home retain warmth in winter and reduce heat entering during summer, while reverse-cycle systems provide both heating and cooling.

Heat-pump hot water systems use electricity to move heat rather than producing all their heat directly. Rooftop solar can further reduce the amount of electricity a household must purchase from the grid during daylight hours where the system and billing arrangement pass those benefits to the renter.

Community housing organisations applying for the grants were required to ensure the full value of energy savings generated by the upgrades would flow to their renters.

Work expected through 2027

The program timetable says activity under the second round is due to begin from December 2026 and be completed by December 2027.

Renters should not assume every selected home will receive every available technology. Providers will assess property condition, electrical capacity, existing appliances and the most suitable package for each dwelling.

The program generally targets detached and attached homes, along with apartment buildings below five storeys. Homes constructed before 2005 were preferred in the funding guidelines, reflecting the greater likelihood that older stock will benefit from thermal and appliance upgrades.

The $9 million round forms part of a combined $346.6 million Victorian and Australian government investment intended to improve more than 23,000 social housing homes. The broader program is targeting about 60,000 individual upgrades and the conversion of 5,000 homes to all-electric operation.

What renters can expect

The housing provider will organise and manage the work. Community housing renters are not expected to select an installer or apply for the grant themselves.

Residents may need to provide access for an assessment and installation, and some appliances may be unavailable for short periods while work is carried out. Providers should explain the planned package, timing and any changes to the way heating, cooking or hot water systems operate.

This announcement applies to community housing selected through the grant program. It is separate from the obligations applying to private rental providers and does not mean every Victorian rental home will automatically receive a government-funded upgrade.

What it means for you

• Renters in selected homes should receive details directly from their community housing provider.
• Each funded property is expected to receive at least two eligible upgrades rather than a single appliance swap.
• Savings will vary, so compare energy bills after the work and raise unexplained changes with the provider.
• Private renters cannot apply directly through this community housing funding round.