Abstract: This paper presents results of an equity analysis of impacts of the Victorian Energy Saver Incentive (VESI) scheme and shows the extent to which savings are being achieved in relatively disadvantaged and advantaged areas of Melbourne. The scheme, also known as the Victorian Energy Efficiency Target (VEET) scheme, is the largest residential greenhouse gas emissions reduction scheme in Victoria and has significant influence in shaping opportunities for household energy efficiency in the State. The VESI requires energy retailers to fund emissions reductions by purchasing certificates created from energy efficiency improvements in homes, such as replacement of light globes and upgrading of hot water services. As energy prices increase, VESI presents an important opportunity for Victorians to reduce emissions and exposure to rising energy prices. It is, however, crucial that disadvantaged households are treated equitably and have opportunities to participate fully in the scheme, particularly as households that implement measures covered by the scheme will reduce energy bills by more than those that do not (DPI, 2011b, p.52). Clearly, this has both social and environmental implications. Until now, no such analysis has been undertaken. Using VEET data, this research examined the distribution of VEET certificate creation under the scheme in postcode areas as ranked by the Australian Bureau of Statistics’ Index of Relative Socioeconomic Advantage and Disadvantage in metropolitan Melbourne. Analysis produced mixed results with important implications for the scheme into the future; for the Victorian scheme and in the context of the imminent development of a National Energy Savings Initiative.