Victorian rental energy-efficiency rules for 2027.

What changes for Victorian rental properties in 2027?

Some rules apply when equipment fails beyond repair. Others apply at the start of a new rental agreement or when an agreement converts to month-to-month. Cooling ultimately becomes universal from 1 July 2030, subject to exemptions.

Victoria's 2027 rental energy standards at a glance

This table is a planning summary, not a substitute for the property-specific exemptions and technical definitions published by Consumer Affairs Victoria.

What changes before 2027? Two-year gas and electrical safety checks

From 13 October 2026, rental providers and agents must arrange gas and electrical safety checks by qualified tradespeople every two years for rental properties, including agreements that began before that date.

That matters to electrification planning because the safety check can identify existing electrical issues before a landlord adds reverse-cycle air conditioning, heat-pump hot water or other substantial loads. It does not replace a project-specific assessment of switchboard and supply capacity.

For draughtproofing where gas appliances remain, Consumer Affairs Victoria also requires a gas check within the published period before the sealing work so ventilation requirements are not compromised.

What is the new heating requirement?

From 1 March 2027, when an existing fixed heater fails and cannot be repaired, it must be replaced with an energy-efficient fixed electric heating system serving the main living area.

Current Consumer Affairs Victoria guidance defines this as either a non-portable non-ducted electric air conditioner or heat pump with at least a 2-star GEMS heating rating for the climate area, or a ducted electric heating system meeting the published seasonal-performance requirement.

A functioning heater that already meets the existing minimum standard does not need to be replaced solely because the date arrives.

What is the new cooling requirement?

From 1 March 2027, an energy-efficient fixed cooling system in the main living area is required at the start of a new rental agreement, when an agreement converts to month-to-month, or when an existing fixed cooling system fails and cannot be repaired.

Consumer Affairs Victoria currently requires either qualifying non-ducted electric air conditioning or heat-pump equipment with a 3-star or better cooling rating for the climate area, or qualifying ducted electric cooling meeting the published seasonal-performance threshold.

From 1 July 2030, all rental properties must meet the cooling standard regardless of lease status, subject to applicable exemptions. A qualifying reverse-cycle system may be able to satisfy both heating and cooling requirements.

What happens when a rental property's hot-water system fails?

From 1 March 2027, when an existing hot-water system permanently fails and cannot be repaired, it must generally be replaced with an efficient electric system: either a heat-pump water heater or an electric-boosted solar water heater.

The rule does not require a working hot-water system to be discarded early. Exemptions can apply in circumstances such as centralised building hot water, heritage or Owners Corporation restrictions, or insufficient installation space.

See how heat-pump hot water can work with rooftop solar ↗.

What are the insulation and draughtproofing requirements?

From 1 March 2027, where a ceiling space has no existing ceiling insulation, qualifying insulation with a minimum R-value of 5.0 must be installed by a qualified installer at the start of a new rental agreement or conversion to month-to-month. Consumer Affairs Victoria says an electrical safety checklist must be completed and electrical issues addressed by a licensed electrician within 30 days before the insulation work.

From 1 July 2027, external doors, windows and unsealed wall vents must be draughtproofed at the same new-agreement or month-to-month trigger. Where gas appliances are present, a gas safety check is required before draughtproofing and some appliance or ventilation conditions can prevent sealing work from proceeding safely.

From 1 March 2027, showerheads are also subject to the new 4-star WELS standard at the relevant agreement trigger, with the published fallback where a 4-star head cannot operate effectively.

Does Victoria's 2027 rental standard require solar panels?

No. Rooftop solar is not one of the mandatory 2027 minimum energy-efficiency measures.

Solar can nevertheless become more strategically useful as the property uses more electricity for heating, cooling and hot water. If a landlord is already upgrading the switchboard, adding reverse-cycle air conditioning or moving hot water away from gas, it can be sensible to assess roof space and solar economics at the same time.

Do not install solar solely because the minimum standards are changing. Size it around the property's likely tenant electricity profile, roof and network connection.

What solar support is available for Victorian rental properties?

Solar Victoria currently offers eligible rental providers a solar PV rebate of up to $1,400 for a maximum of two rental properties per financial year. An eligible rental provider can also apply for an interest-free loan matching the rebate amount, repaid over four years.

The property and renter household must meet current program eligibility requirements, the address must meet the Solar Homes participation rules, and the installation must use an authorised retailer and eligible products.

What agreement is required with the renter?

The renter and rental provider must sign the Solar Homes Rental provider-Renter Agreement and the renter must agree to access for quoting, installation, inspection and maintenance.

The landlord can pay the loan repayment entirely or the renter can agree in advance to contribute up to 50% of the monthly loan repayment under the program's co-payment model. For the current $1,400 loan, Solar Victoria publishes a maximum renter contribution of $14.58 per month and an annual cap of $231.25.

How should a landlord or property manager plan the transition?

Quick questions for rental providers

Do all gas heaters need to be removed on 1 March 2027?

No. A functioning heater that meets the current minimum standard is not automatically replaced on that date. The new heating rule is triggered when the existing fixed heater fails and cannot be repaired.

Does every rental need air conditioning from March 2027?

Not immediately. The cooling standard initially follows the published agreement and failure triggers. From 1 July 2030, all rental properties must meet the cooling standard, subject to exemptions.

Should I upgrade to three-phase power before electrifying a rental?

Not automatically. Assess the actual simultaneous loads, existing supply and switchboard first. See the single-phase vs three-phase guide ↗.

Can solar reduce the running cost of the new electric appliances?

Potentially, especially when loads such as heat-pump hot water can run during solar-producing hours. The result depends on the tenant's usage pattern and the property's roof and connection.