Victorian Government Launches New Home Insulation Program to Reduce Bills and Boost Comfort

In a major move towards improving household energy efficiency, the Victorian Government has announced a new initiative set to launch in early 2026. The program will offer discounts on ceiling insulation to eligible residents as part of the Victorian Energy Upgrades (VEU) scheme. This effort aims to enhance home comfort, reduce heating and cooling costs, and promote healthier living conditions.

With nearly 60% of homes across the state having little to no ceiling insulation, the government’s plan could lead to significant savings — with average households expected to save over $400 annually on energy expenses, and up to $850 per year in health-related costs.

Making Homes More Comfortable and Energy Efficient

This new initiative focuses on increasing thermal efficiency in Victorian homes, especially those with outdated or missing insulation. Many older houses lack sufficient attic coverage, and this program will provide an affordable pathway to upgrade those spaces. Enhanced insulation can dramatically improve indoor temperatures, making homes warmer during winter and cooler throughout summer — all while easing the load on heating and cooling systems.

The programme is not just about ceiling upgrades. It opens the door for broader improvements, from wall retrofits to under-roof and loft insulation. This includes solutions for difficult-to-reach areas or for homes with limited internal access, such as the ability to insulate external walls without disrupting interiors.

Backed by Industry Expertise

Solar Victoria, the agency behind the state’s successful rooftop solar and battery programs, will spearhead this new rollout. Having already supported more than 360,000 homes with clean energy technologies, they bring valuable experience in compliance, safety, and large-scale coordination.

To ensure high-quality outcomes, Solar Victoria will work closely with training bodies, unions, and regulatory authorities to develop a skilled installer workforce. This will include updated certification pathways and industry partnerships, all designed to meet Australia’s leading safety and performance standards for insulation.

The Essential Services Commission — the regulator behind the broader energy upgrades program — will also play a key role in establishing new rules and oversight for the initiative.

Supporting Households With Financial Relief

As part of its broader energy affordability agenda, the government will introduce various forms of support to help households take part. These include financial assistance, rebates, and potential grant opportunities for eligible residents. This means that those looking to upgrade insulation in roof cavities, walls, or lofts can do so with less financial pressure.

Whether you’re a homeowner considering attic upgrades or a landlord retrofitting a rental property, the program is designed to make insulation more accessible. The available incentives will cater to various housing types and budgets, from small homes and sheds to large family properties.

For households unsure about costs, this is a valuable opportunity. The initiative is expected to significantly reduce the overall expense of professional installation — a welcome relief for those who’ve been putting off upgrades due to price concerns.

What Kind of Insulation Will Be Covered?

The focus will primarily be on improving ceiling and roof spaces, but the program will likely expand to include other options as well. External wall treatments and improved solutions for attics and lofts are part of the long-term plan, especially for homes that currently have minimal thermal protection.

Materials such as spray foam and bulk insulation will likely be featured, alongside more traditional options. Homeowners undertaking renovations or extensions — or even those building sheds or granny flats — will be able to explore improved coverage and DIY-friendly options through the new framework.

Who Can Apply?

While the exact eligibility details are still being refined through ongoing consultation, the program is expected to prioritise households with the greatest need. This includes low-income families, renters, and residents of homes built before current insulation standards were introduced.

Targeted discussions began in April 2025 and will continue throughout the year. The feedback gathered will shape the final structure of the initiative, ensuring it reaches the people and places where it can have the most impact.

Preparing for Launch in 2026

Though the full rollout is expected in early 2026, now is the time for residents to start thinking ahead. Conducting a basic home energy assessment can help identify areas that need improvement — especially in older homes that may not meet modern insulation standards.

Here are a few ways households can prepare:

• Inspect existing insulation: Check your attic, roof space, and walls to gauge what’s currently in place.

• Research qualified installers: Start looking into reputable professionals who offer thermal solutions in your area.

• Understand available options: From roof space upgrades to cavity wall treatments, familiarising yourself with what’s available will make the process smoother.

• Track updates: Stay informed through Solar Victoria and the Victorian Energy Upgrades program so you’re ready to apply when the program opens.

A Broader Vision for Sustainable Living

This program isn’t just about insulation — it’s a step towards long-term sustainability and healthier living. Homes that maintain stable temperatures are not only cheaper to run, but they’re also safer and more comfortable for families. Improved insulation can reduce mold, dampness, and cold draughts — all factors that contribute to respiratory illnesses and other health issues.

And from an environmental standpoint, better-insulated homes mean lower energy consumption and fewer emissions. The program will support Victoria’s broader clean energy goals, encouraging a shift towards more efficient, resilient housing across the state.

Conclusion

The Victorian Government’s new insulation program marks an exciting opportunity for households to reduce energy use, improve indoor comfort, and contribute to a greener future. With support from Solar Victoria, industry regulators, and training bodies, the initiative is set to make high-quality upgrades more accessible and affordable for thousands of residents.

Whether you’re planning a full home retrofit or just upgrading your roof space, the upcoming discounts and rebates will make now the perfect time to explore your options. Keep an eye on the program as it develops — your future cosy, energy-efficient home might be closer than you think.

For more information and updates about the upcoming insulation discounts program, please visit:
energy.vic.gov.au/victorian-energy-upgrades/products/insulation-discounts