Why Home Energy Ratings Are Becoming So Important

Whether you’re building or buying, home energy ratings are becoming an increasingly important metric for builders and buyers alike.

And while the conversation around energy efficient homes continues to grow, there continues to be a gap in how consumers understand and measure the energy rating system. 

In a bid to wade through the confusion, let’s provide some clarity around how energy efficient home ratings work in Australia, what actually goes into the rating system, and why they’re becoming increasingly important in the real estate market. 

What Are Home Energy Ratings?

Home energy ratings comprise two main components under the Nationwide House Energy Rating Scheme (NatHERS).

Firstly, receive a thermal star rating between 0 to 10, which assesses the building’s design, the materials, and the efficiency in construction in terms of regulating both heating and cooling efficiency. A higher star energy rating will indicate that a home is more comfortable for its occupants and cheaper to run.

Secondly, a home will receive a “Whole of Home” rating between 0 to 100 that considers the energy use of all major appliances in the home including heating and cooling, hot water systems, lighting systems, and on-site energy generation and storage (solar panels and batteries) capability. Just like the energy ratings that you see on new white goods and appliances, the “Whole of Home” energy rating provides a comprehensive overview of the home’s energy performance, costs to run, and environmental footprint. 

It can’t be overstated that creating an energy efficient home isn’t about putting in penny pinching green measures that cut down on resources. Energy efficiency homes are a conscious effort (from the outset of the build) to create homes that work with the natural environment and utilise the best available tech to create economically sustainable living.

What do Energy Rating Stars Really Mean? 

A zero-to-ten-star or zero-to-one-hundred home energy efficiency rating may seem rather simple, and perhaps that’s the point. The star rating system ensures that the rating system is easily transferable between builds and provides an easy-to-interpret system for both builders and buyers alike.

Today, Australia’s National Construction Code (NCC) mandates a minimum 7-star thermal star (or equivalent) on all new home builds in Australia. A home energy rating helps to inform prospective buyers of the costs to run the home on a yearly basis. 

Important Factors for Home Energy Ratings

As we mentioned, creating an energy efficient home isn’t just about implementing energy-positive measures in the build. Building a home with a high energy rating happens from the outset – it’s not an afterthought that happens before handover. Some of the key factors that help to make a home more energy efficient, include:

• The layout of the home
• The orientation of the property
• Materials used during construction for improved insulation
• Considering local weather conditions and land layout

Energy assessors from the Nationwide House Energy Rating Scheme, can use predictive modelling tools to project heating and cooling requirements of a property before being built. Based on these findings, the NatHERS assessors can prepare an annual energy use rating between 0 and 10 stars specific to the home.

How Long Have Home Energy Ratings Been Around?

The Nationwide House Energy Rating Scheme or NatHERS has been gaining considerable speed over the last decade. 

In spite of the recent surge in awareness, The Nationwide House Energy Rating Scheme dates back to 1993, with the first label of an ‘energy rating’ going all the way back to 1986. The premise of an energy efficient home rating was first introduced in New South Wales and Victorian building codes before being rolled out to other states and territories.

Benefits of Energy Efficient Homes

When it comes to creating energy efficient homes, the benefits aren’t just for the environment – they also have an important impact on day-to-day comfort for homeowners. Here are just some of the benefits of building an energy efficient home:

• Reduced energy bills on heating, cooling, appliances
• Improved, year-round comfort in your home
• Reduce your reliance on your home cooling and heating
• Reducing residential greenhouse gas emissions

When we look at energy efficient homes, some may dismiss it as another tokenistic green gesture in the building industry. But the truth is, while the environment is a big part of the energy efficient home equation, the benefits can be seen every day – as well as in your hip pocket at the end of each month.