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In most of Australia, new homes must meet a minimum energy efficiency standard of seven stars out of 10. But experts say the typical existing home rates no more than three stars.
About 70 per cent of Australia’s 11 million houses and apartments were built before the introduction of minimum efficiency standards. Home owners, buyers and renters had no way of knowing how their home performed – until now.
The Nationwide House Energy Rating Scheme (NatHERS) standard for 90 per cent of the nation’s new builds opened up to existing homes on July 1, and was renamed the Home Energy Ratings.
Jacob Caine, president of the Real Estate Institute of Australia, said this was “one of the most important transitions of our residential built environment in generations”.
“Across the country the average Australian home sits at somewhere in the vicinity of a two- to three-star rating, which, in simple terms, means that we’re living in inefficient, cold, draughty, oftentimes hot and uncomfortable homes,” Caine said.
“Upgrading those homes represents an incredible opportunity for Australians to live in more comfortable, lower cost and healthier homes.”
The ratings can be used by homeowners to inform renovations and by people buying or renting homes to compare the energy performance of different properties. Banks can also rely on them to assess loan applications since the energy upgrades will increase people’s disposable income.
Assistant Minister for Climate Change and Energy, Josh Wilson said it was an important tool to reduce household costs by giving practical advice about which upgrades would have the biggest impact.
“Australians deserve homes that are comfortable to live in and affordable to run,” Wilson said.
The NSW government has recently completed a trial of how home energy ratings can be shared when homes are advertised for sale or lease, and announced the ratings will be included in their new loan and discount program to fund energy-saving upgrades. The state’s residents can now access zero-interest loans between $2000 and $15,000 to undergo an assessment and make a range of energy-saving upgrades.
The Victorian government has an energy upgrades program to help residents cut power bills and reduce greenhouse gas emissions with rebates or discounts on a range of energy-saving products such as hot water heat pumps.
Caine said the Victorian government also had minimum rental standards relating to energy efficiency coming into effect in March next year. This would force landlords to pay attention to insulation, draught proofing, and upgrading appliances.
Home buyers and prospective tenants were increasingly asking questions about energy efficiency, Caine said.
Cecille Weldon, the founder of Future Agent, an academy for real estate agents, said the home energy ratings for existing homes were currently a tool for people considering renovations.
“Every Australian has an experience of living in an uncomfortable home, so we understand that a comfortable home is great, but we don’t know how to get it,” Weldon says. “We don’t know which features are delivering comfort.”
Weldon said she could foresee the ratings being made mandatory for home sales and rentals in the future. For now, she said, the property portals Domain and Realestate.com.au had added energy efficiency to the standard list of features for property listings.
Bruce Pearson did a home energy rating assessment for his Blue Mountains home at the suggestion of his bank, as part of the NSW trial to expand the ratings to existing homes.
“It’s an old mountain’s weatherboard cottage from the 1930s and, like all old Australian houses, or actually some new ones as well, it’s like a damn tent,” Pearson said. “There’s no insulation at all.”
The Lawson property, his home of the past 20 years with his wife Rose and daughter Lilli, scored 1.2 stars out of 10 on the thermal rating and 0 out of 100 for the whole-of-home rating. Home efficiency upgrades have boosted the score to 2.5 stars out of 10, and 71 out of 100, the latter considered a high rating.
Pearson’s renovations predated the zero-interest government loans, but he accessed the household energy upgrades fund using a Westpac Sustainable Upgrades Home Loan to install solar panels, battery and hot water heat pumps.
But one of the most effective improvements he has made was the cheapest – installing seals around their doors to stop hot or cold air leakage. He has also added insulation to the walls as he has renovated.
Pearson said he was considering future upgrades such as double-glazed windows and removing the gas cooktop to make the home fully electric.
Lilli Pearson, 21, said she was involved in organising the upgrades because she was interested in how to run a home to save money and the environment.
“This could be one of the ways I can make a difference as an individual,” Pearson said.
More information: homeenergyrating.gov.au
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