A YEARS-LONG campaign pushed by the Central Victorian Greenhouse Alliance will be realised by the state government in its 2020/21 budget.
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The budget will include $797 million to help people cover the cost of their power bills and make their homes more energy efficient.
Part of that includes minimum efficiency standards for rental properties and $335 million to replace old wood, electric or gas-fired heaters with new energy-efficient systems.
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About 320,000 poor-quality homes are set to benefit from the household energy efficiency package.
CVGA executive officer Rob Law said the organisation has wanted rental properties to have a minimum level of energy efficiency for almost 10 years.
"That's one of the big ones for us," he said. "We have been campaigning for 10 years to have a minimum standard rentals.
"That's been a hard slog to get that over line. We're thrilled it's been announced."
Open to low-income earners, energy, environment and climate change minister Lily D'Ambrosio expects about 250,000 households to save between $300 to $900 each year on their energy bills thanks to the replacement of outdated heating and cooling systems.
"Most Victorians have spent more time at home this year - and more on power bills - than they ever have," she said.
"That's why we're helping those struggling to pay their bills and making homes across the state more energy efficient."
Social housing properties will benefit with $112 million to be spent on better sealing windows and doors as well as upgrading heating, cooling and hot water in 35,000 social housing properties.
"A lot of wood heaters and gas heaters are inefficient and quite hazardous," Mr Law said. "Something like a split heater and cooling system will be a good outcome for a lot of homes."
Funding will also be provided to help the state move to seven-star efficiency standards for new homes, supporting skills, training and jobs in our construction sector. Eligible concession card holders, JobSeeker, youth allowance or pension payment recipients will also get a one-off $250 payment for direct bill relief.
Extra rebate funding will be provided to the Victorian Energy Upgrades program ($14 million) and the Solar Homes program ($191 million).
Mr Law said residential energy consumption in central Victoria had increased during winter as people worked from home while commercial and industrial energy consumption dropped.
He said while the announcement was a massive step forward, there was always more to do.
"This package really comprehensive, so now is a chance to step back and celebrate it a bit," he said.
"The big thing is that it is able to cover so many things. There is a lot in there and we are pleased it is comprehensive. There is still a lot of work to be done and areas to tackle, particularly in business and public buildings, but it is a really good start."