These changes introduce five new streamlined Specified Measurement Methods (SMMs) and amendments to the current existing Project Based Activity (PBA) M&V method.

This makes it simpler and more economical for a broader array of industrial and commercial projects to participate in the program.

These changes were officially reflected in the Victorian Energy Efficiency Target (Project-Based Activities) Regulations 2017 (the ‘PBA Regulations’) as of 26 August 2025, confirming that the SMMs are now active.

The VEU program has consistently served as a vital resource for industrial clients and solar companies working with large commercial facilities, enhancing the financial viability of their energy efficiency initiatives.

SMM 1&2: Weather Normalised Whole of Site Measurement (electricity & gas)

These SMMs simplify the process of demonstrating energy savings and creating VEECs by providing a fixed method for normalising energy data against weather variations.

This reduces the volume of site-specific data typically required for VEEC creation. 

They are designed to support facilities with weather-dependent energy consumption, such as those with large-scale heating, ventilation, and air conditioning (HVAC) systems. However, it’s important to note that these SMMs are not intended for solar use, despite any apparent links (see SMM 4 for updates on solar VEEC creation).

SMM 4: Direct Measurement of Solar PV

This SMM offers a more straightforward approach for calculating energy savings from behind-the-meter solar PV projects.

While this new method may lead to a slight reduction in VEECs compared to the previous, more complex approach, the simplified process and reduced administrative burden will make it a more attractive option for many solar companies and their clients installing smaller PV systems in the 100-300kW range. Larger systems, however, will likely continue to benefit from using the Standard M&V method.

Importantly, this SMM will better recognise the value of commercial and industrial batteries, resulting in a higher VEEC outcome than previously calculated under the M&V method.

SMM 3: Retrofit Isolation for Non-Seasonal Motors & Rotating Equipment

This SMM simplifies the measurement and calculation of energy savings for upgrades to constant-run motors and other rotating electric equipment, including those in ventilation systems, pumping stations, and manufacturing processes. 

This streamlined approach unlocks new opportunities to generate VEECs from previously overlooked energy efficiency projects.

As a result, this could mean a faster consumer payment period than the traditional 18-months seen under M&V methods previously. Depending on the project, consumers could see their VEEC incentives in half the time of previous claims.

SMM 5: Electrification Direct Measurement

As industrial facilities increasingly look to electrify their processes to reduce their carbon footprint, the support for industrial electrification via heat pumps has been lacking under the VEU program’s M&V method. 

This new SMM aims to simplify energy savings calculations for electrification projects and reduce the dependence on gas measurement of existing equipment. 

By doing so, it will encourage the use of commercial and industrial heat pumps, making it easier for businesses to electrify low-temperature heat sources and earn VEECs for their efforts.

New Opportunities for Industrial Facilities & EPCs.

The changes to the VEU M&V methods represent a significant opportunity for industrial facilities and EPCs (Engineering, Procurement, and Construction) such as solar companies, HVAC businesses or motor manufacturers to reduce the payback period for energy efficiency upgrades.

Introducing these streamlined M&V methods for low-risk projects will make it easier and more cost-effective to participate  in the program and generate valuable VEECs.

As the VEU program continues to evolve, staying up-to-date with the latest changes and understanding how they can benefit your business is crucial. Working with an experienced and knowledgeable Accredited Provider who understands the intricacies of the VEU program and M&V specifications is a must to help you navigate the process and maximise your returns.