Mandatory energy rating report card urged for all homes

All Australian homes should receive a score out of 10 for energy efficiency before they can be sold or rented, experts say, as part of an expansion to a national assessment program.

The Nationwide House Energy Rating Scheme, which is used to rate the efficiency of new-build homes, will become available to more homeowners and landlords from July as part of a $32.7 million expansion.

Property experts welcomed the investment but said energy assessments should be made mandatory in Australia, just as they are in Europe.

The energy-rating scheme, introduced in 1993, assesses homes based on their design, orientation, insulation, construction and thermal performance, as well as the energy used by fixed appliances and generated by items such as solar panels.

Assessments would help homeowners cut electricity bills, Assistant Energy Minister Josh Wilson says (Lukas Coch/AAP PHOTOS)

Homes are given a rating from zero to 10 stars, with seven stars adopted as the minimum standard for new builds.

About 70 per cent of Australia’s 11 million homes were built before the scheme’s introduction, however, and have an estimated energy rating below three stars.

Making assessments available to more homeowners would help them identify the most productive upgrades and to cut electricity bills, Assistant Energy Minister Josh Wilson said.

“The National Climate Risk Assessment clearly shows that hazards such as heatwaves will continue to intensify in the coming decades,” he said.

“Taking practical steps to improve energy performance in our homes will be critical to support Australians in their efforts to adapt to the impacts from climate change.”

Many people doing renovations often don’t know if they have insulation, a property expert says. (Joel Carrett/AAP PHOTOS)

The $32.7 million funding boost over four years will be used to train and accredit more assessors.

Homeowners will be able to apply for an assessment from mid-2026, with reports expected to cost between $250 and $650.

Expanding the scheme could raise awareness of vital energy-efficiency upgrades that were often overlooked and misunderstood, RMIT University Associate Professor Nicola Willand said.

“We find that if people think about modernising or renovating their home, they’ll think about the kitchen and the bathroom and the things that are shiny and look good,” she told AAP.

“They often don’t even know if they’ve got insulation.”

There’s a push for energy-efficiency assessments to become mandatory when selling and renting homes. (Darren England/AAP PHOTOS)

Ultimately, energy-efficiency assessments should become a requirement for selling and renting homes in Australia, Dr Willand said, just as they had been in countries such as Germany since 2000.

Only the ACT requires energy assessments to be published at the point of sale, although the NSW government will test voluntary disclosures from mid-2026.

“Australian homes really contribute to greenhouse gas emissions and if we don’t improve the energy efficiency of the home, plus the efficiency of heating and cooling systems, we won’t get those emissions down,” she said.

“Hopefully it becomes mandatory and part of selling or renting your home so that whoever looks at the home will get an understanding.”

Source: AAP