Why Now Is the Best Time to Claim VEECs for Large-Scale Solar in Victoria

If you’re considering a commercial solar PV installation above 150 kW in Victoria, now is the perfect time to act. A recent update to the Victorian Energy Upgrades (VEU) program has introduced a new way of generating Victorian Energy Efficiency Certificates (VEECs) for solar projects — and it’s a breakthrough that removes many of the risks and delays that have held the industry back. 

This new method is called SMM4 (Specified Measurement Method 4), and it promises greater certainty, simplicity, and stronger returns for businesses investing in mid-to-large scale solar. 

The Solar Incentive Landscape in Victoria 

Victoria offers three main pathways for businesses to claim incentives on solar PV: 

1. STCs (Small-scale Technology Certificates): 

2. Available only for systems under 100 kW, typically residential or small commercial. 

3. Well understood, relatively stable in price, and usually applied upfront as a discount. 

4. LGCs (Large-scale Generation Certificates): 

5. Available for any renewable system above 100 kW. 

6. However, the process is complex: registration as a power station, monthly reporting, and retrospective certificate creation. 

7. Key limitations: 

8. Incentives are delayed (certificates only created after generation). 

9. LGCs are only legislated until 2030, so generation beyond that date is ineligible. 

10. Prices are rapidly declining as 2030 approaches.   

11. VEECs (Victorian Energy Efficiency Certificates): 

12. Available for all solar PV system sizes, and potentially the most lucrative for larger systems. 

13. Traditionally claimed under the Measurement and Verification (M&V) method. 

Why VEECs Have Been Underused for Solar 

Historically, using VEECs for solar PV projects has been difficult. The M&V method required: 

• Site-wide energy modelling (before and after solar). 

• Long data collection and verification periods (typically 14–18 months). 

• Exposure to external risks (e.g., changes in building use or operations affecting results). 

This uncertainty often meant that solar projects could not reliably claim VEECs — and so most of the industry turned away from this pathway, despite its strong potential value. 

Enter SMM4: Direct Measurement of Solar Generation 

The Essential Services Commission (ESC) has now introduced SMM4, a new specified method for commercial solar PV under the VEU program (ESC guidance). 

How SMM4 works: 

• Instead of modelling whole-site consumption, it uses direct measurement of solar generation. 

• The calculation is based on the energy produced by the solar PV system, adjusted for any exports back to the grid. 

• This gives an accurate, transparent picture of energy savings — with far less complexity and risk. 

The benefits are significant: 

• Certainty: VEEC creation is now tied directly to system output, not broader site changes. 

• Transparency: Generation data can be tracked monthly, giving visibility of incentive value earlier. 

• Reduced risk: As long as the solar system operates, the VEEC claim remains valid. 

• Attractive value: VEECs currently offer higher and more reliable returns than LGCs for large systems. 

Industry analysts describe this as a “game-changing update” for commercial and industrial solar projects.  

Why SMM4 is Different  

Past methods tied incentives to site-wide energy use → risky, slow, often unworkable. 

• SMM4 ties them to actual solar generation → transparent, predictable, and resilient against operational changes. 

• Businesses and installers can now forecast VEEC returns with confidence from day one. 

What This Means for Businesses 

If you’re installing a solar PV system larger than 150 kW in Victoria, VEECs under the SMM4 method now represent the strongest incentive pathway available. 

While you still need 12 months of operational data before creating VEECs, the certainty and visibility of the value upfront is a major improvement over the past. This makes it easier to plan projects, secure financing, and demonstrate returns to stakeholders. 

How EC Focus Supports This Transition 

As an Accredited Provider under the Project-Based Activities method, EC Focus is uniquely positioned to help businesses and installers take advantage of the new SMM4 pathway. 

• We have deep expertise in navigating VEU compliance, modelling savings, and securing VEEC claims. 

• With SMM4, we can now streamline the claim process for commercial solar projects, giving partners earlier visibility of VEEC value. 

• We are also exploring innovative funding models, such as quarterly or even monthly upfront payments of expected VEEC value, to improve cash flow for clients. 

The Bottom Line 

For businesses investing in commercial solar PV systems above 150 kW, there has never been a better time to consider VEECs as part of your project strategy. 

With the introduction of SMM4, VEECs now offer: 

• Greater certainty, 

• Lower risk, and 

• Stronger financial returns than other incentive pathways. 

At EC Focus, we’re ready to guide you through this opportunity — and help unlock the full value of your solar investment. 

We are not just an accredited provider — we’ve been delivering complex VEEC claims under the traditional M&V method for years. 

That means we know the pitfalls of the old system better than most — and why SMM4 is such a breakthrough.