In the home

Understanding energy efficiency standards

November 2024

This article was originally published in May 2023 and has been updated.

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    Did you know that in Australia, all new houses and apartments need to meet a minimum 7-star energy rating? We help explain what that means, and how it’s achieved.

    The National Construction Code 

    Back in 2022, an update to the National Construction Code (NCC) was introduced. The change meant that all new homes built in Australia would need to meet a minimum energy-rating requirement of 7 stars (previously 6) under the Nationwide House Energy Rating Scheme (NatHERS). The change was introduced to help make new homes more comfortable to live in and more affordable to run. According to NatHERS, a 7-star rated home will use 25% less energy than a 6-star rated home, and while the cost of building materials may rise slightly, the investment in energy efficiency could pay dividends.

    What is the Nationwide House Energy Rating Scheme?

    The Nationwide House Energy Rating Scheme (NatHERS) has been guiding home design since 1993. It provides a framework of requirements for new builds in the NCC to help make homes more energy efficient and reduce reliability on the grid.  

    NatHERS assessments provide a star rating out of ten based on many different factors. These include the way the home has been built, it’s orientation on the block, and the local climate. It also considers things like water use, insulation, appliances and more. 

    Concepts to consider

    Whether you’re building, buying, renovating or simply want to make some minor upgrades, take some time to learn a bit about ‘Passive design’ and other sustainable building practices that work to make the most out of local climate and site conditions. By doing your research and learning about passive design principles, you can help futureproof your home and maximise your comfort. Here’s some key concepts to get you started:

    Sun and climate

    Understand how the position of the sun and local climate can affect your home’s energy needs and comfort throughout the seasons. There may be ways to orient the home to help you rely less on heating and cooling.

    Windows and skylights 

    According to YourHome, up to 40% of a home’s heating energy can be lost and up to 87% of its heat gained through windows. So, it’s worth thinking about size, position and type of glazing. Skylights can also be considered to help you make the most of the daylight and minimise reliance on artificial lighting.

    Insulation

    Insulation is a material used to help reduce the amount of heat and sound from being transferred through building materials like bricks. Because it acts like a barrier to the flow of heat energy, it is essential for keeping homes cool in summer, and warm in winter. In fact, according to Sustainability Victoria, a fully insulated home compared can reduce the cost of heating and cooling by around 40 to 50%, compared to a non-insulated home.

    Creating zones

    More doors mean greater ability to control temperature in your home. Doors to close off occasionally used rooms, like media and rumpus rooms, or other parts of your home that are accessible by stairs, reduce your need to heat and cool those spaces.

    If you're looking for more inspiration,the YourHome Federal Government website provides free, climate zone-specific designs of 7-star house plans - so you can get planning on a home that not only meets the national requirement, but helps you to work towards greater comfort and smaller bills for years to come.

    Get your home assessed, and make the most of free resources

    NatHERS’ top tip for new home builders and renovators is to get building assessors involved early. NatHERS accredited assessors are extensively trained to improve ratings and help with options to get your home to 7 stars and beyond. 

    To find an accredited assessor for your new home, contact one of the Assessor Accrediting Organisations (AAO) below:

    Helping you protect the family home

    Explore cover for flood, fire, theft, and accidents with a combined home and contents insurance policy.

    All content on the NRMA Insurance Blog is intended to be general in nature and does not constitute and is not intended to be professional advice.

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    Moving house Sustainability Home Energy efficiency

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