Everything You Need to Know About the 7 Star Standard for New Homes
If you’re planning to build a new home in 2023 or beyond, you may have already heard of the changes to the National Construction Code (NCC). These changes stipulate that all newly constructed homes in Australia must meet a minimum 7 star energy efficiency rating.
With information from the experts at Pivot Homes, this blog will explore everything you need to know about the new 7 star standards.
What does a 7 star energy rating mean?
The Nationwide House Energy Rating Scheme (also known as NatHERS) rates the energy efficiency of homes in Australia. A NatHERS assessment scores any given home on a range of 0 to 10 stars.
Specifically, the NatHERS star rating measures a home’s thermal performance based on elements of its construction such as building materials, local climate, shading, and house design.
In general, more stars means better efficiency and lower energy bills. Previous editions of the National Construction Code set the minimum for new homes at 6 stars. This new 7 star NatHERS minimum means that the average homeowner will save about $180 per year on their energy bills.
What is the timeline for the new 7 star standards?
The 7 star energy requirement applies to new homes built after 1 May 2024.
There will be a transition period before the mandatory introduction of the new minimum 7 star standard for new homes.
The changes will not be compulsory for homes that have a building permit issued before 1 May 2024.
The changes will also not apply if a building surveyor certifies that the building design process was already well underway before this date.
What are the benefits of 7 star home designs?
Enhanced comfort
By improving the thermal performance of the home, the new 7 star standards enable homeowners to live more comfortably in their homes during the hot and cold months.
A 7 star rating will mean that a home is less likely to have troublesome hot and cold spots that don’t maintain their temperature as well as the rest of the home.
Greater resilience to extreme weather
During an extreme heat wave or cold snap, lower rated homes are going to feel the changes in temperature more dramatically, and need to rely more heavily on mechanical heating and cooling to maintain temperatures.
On an extremely hot day, for example, a 7 star home will be better able to maintain a comfortable temperature inside than a 6 star (or lower) home.
Lower costs
More stars means lower costs. The exact savings will vary from home to home. According to a story in ABC News, one Canberra homeowner reduced energy costs by almost $3,000 per year by renovating their 6 star home up to 7. This renovation also included the addition of solar panels so they could eliminate the need to run on gas at all.
A fact sheet provided by the State of Victoria Department of Energy, Environment and Climate Action estimates the normal annual savings to range from $300 to $1,000 for homes that meet energy efficiency standards.
Reduced emissions
Every Australian can do their part to help achieve net zero emissions by 2050, and the 7 star standard provides the perfect way to do it. While energy efficient homes generally cost more to buy and build, the total savings in energy costs over the lifetime of a home mean that residents can cut greenhouse gas emissions while actually saving money long-term.
Increased home value
As Australia and the world as a whole move further towards green living as a standard benchmark, energy inefficient homes will be in less and less demand. Not only will they be harder to sell, but they will likely sell for less. In fact, one report found that in 2022, energy efficient homes sold for 17% more (or $125,000 on average). Furthermore, listings for those same homes received almost 9% more views, and they remained on the market for less time.
To keep learning about the 7 star standards, click here.
