7-star Energy Efficiency Rating Homes

The National Construction Code (NCC) has recently updated its requirements to come into effect from the first of May 2024. Among these changes, we’ve seen a new minimum energy efficiency standard for new homes of 7 stars out of 10. This has been amended to make sure homes built in Australia today are safer and more comfortable for residents, as well as hopefully making them less costly to run.

This is great news for homeowners and buyers, but what about developers who are currently planning their new units? How will this affect you in the long run? Explore everything you need to know and how to achieve a 7-star rating below.

See all recent NCC changes for 2024 here.

What’s new in the NCC update?

The updated NCC features two major changes in terms of energy efficiency:

• The new home’s shell now needs a 7-star energy rating out of 10, rated by the National House Energy Rating Scheme (NatHERS)
• New houses must stay within an energy budget as part of the newly introduced Whole of Home requirement

Today we’ll be focusing on the former, which is the NatHERS rating. How many stars your new build gets will be dependent on how much energy is needed to heat and cool a home every year to maintain a comfortable temperature within. Adjustments will be made for different climate zones.

The better thermal performance your new build offers, the higher the star rating because it requires less energy to remain comfortable year-round. In most locations within Australia, 7-star homes need between 20 and 25% less energy usage than 6-star homes for heating and cooling.

Is all-electric the way forward?

Beginning from the first of January 2024, new units that require a planning permit must also be all-electric to run. This means you’ll need to use electric heating, water heating, and cooking appliances. The exceptions to this change are:

• New builds that had their planning permit issued before 1 January 2024
• New builds that don’t require planning permits
• Existing homes that have a gas connection
• Renovations and extensions being added to existing homes

All-electric homes cost less to run, saving homeowners plenty on their energy bills throughout the year. It’s also much cheaper and easier to build a new home as all-electric is done to fit new efficient electric appliances later, so make sure you know whether your new build needs to be all-electric or not. The good news is all electric homes can boost your star rating, making it easier for you to achieve the new 7-star requirement.

Does it cost more to build 7-star homes?

Whether your new build costs more to reach the 7-star requirement or not all depends on your individual design.

Designing with passive solar principles is an excellent way to build a 7-star home that doesn’t cost much more than your current budget. Energy performance requirement increases can be easily met by optimising the orientation of your home – which doesn’t cost any more money as long as you consider it during the design process!

Good architects and designers should already know about the importance of a unit’s orientation, so you might’ve already achieved the new energy efficiency standards without even realising it. The best option is to place the living areas in the northern orientation and provide plenty of shade from the strongest summer sun.

If you’ve already built the shell of your new build, you need to look into other alternatives, such as energy-efficient roofing, flooring, windows, and more. These can cost more, but again, you might have already chosen the energy-efficient options when picking up from suppliers, and you might be closer to the 7-star rating without even trying.

How do these changes affect builders?

Builders and project developers will undoubtedly be affected by the change in energy efficiency rating, but not necessarily as much as you think. Some builders are now coming out to say that moving to a 7-star energy rating is actually better for both builders and buyers, so it’s well worth the extra work and new requirements.

The biggest problems crop up when you have a set way of doing things and don’t want to change your process. It can be difficult to remember that you now have a new set of requirements to stick to, leading to more costs down the line after remembering.

Having said that, the majority of homeowners are willing to pay more for energy-efficient homes, so you can potentially maximise your profit margin with this change. Utilising it to your benefit can go a long way, and hopefully, you’ll see why this isn’t such an inconvenient change after all.

Top tips for building 7-star energy-efficient homes

There are many ways to build a home that adheres to the new 7-star energy-efficient rule, such as:

1. Get a NatHERS assessor involved early during the process

One of the best things you can do is to get your NatHERS assessor involved in the building process as early on as possible. Your assessor will be extensively trained in the new rating system and how to improve your current plans, so this is often the easiest and quickest way to boost the rating through ways you know will benefit your new build.

2. Look at the orientation of your building

Depending on the local climate of your building site, orientation is essential. To maximise your energy efficiency, you need to find the best orientation that allows for enough shade while also offering enough solar access appropriate for the local climate. Repositioning your building plans sounds like a lot more effort than it is, and it’s a change well worth the extra effort to boost its thermal performance.

3. Improve your window glazing

Double and triple-glazed windows are well worth the extra money – and they’re actually becoming more affordable than ever. There are thousands of options out there for you to choose from, and NatHERS even offers default and custom options for you to use to make sure you’re using energy-efficient windows. You might find that things like window sizing, placement, and shading can also affect your star rating – so don’t underestimate the design of your windows.

4. Improve the insulation within your new build

Depending on the climate, your star rating might be improved by increasing the R-value of the walls, floors, and ceilings by insulating them more effectively. For example, while garages aren’t often insulated, you can install extra or extend your current insulation to improve the energy efficiency of these areas.

To learn more about NatHERS tips for building for 7 stars, continue reading here.

Why stop at 7 stars?

Short answer – don’t!

Many developers and architects are already aiming for 8-star ratings to make their new homes stand out from the crowd. Achieving a rating of higher than 7 stars can maximise your profits even more and boost your reputation around your area. Thanks to the new 7-star minimum, achieving higher ratings is becoming even easier and more cost-effective, so there’s no need to tap out at 7 stars if you don’t want to.

Here are a few ways you can go above and beyond the 7-star minimum:

• Futureproof your new build for electric vehicles
• Improve your ventilation system to make sure internal air is always fresh
• Consider post-build airtightness, as this currently isn’t a mandatory test

Common mistakes and how to avoid them

There are a few mistakes that developers are at risk of making to reduce their star rating. Here’s the most common and how you can avoid them:

• Trying to do it on your own: Some developers will try and figure out how to design a new build to reach 7 stars on their own, only to fall short and need to make costly changes later on in the process. To avoid this, get your NatHERS assessor or building certifier on board early to make sure you’re getting a second opinion on your new ideas.
• Using unknown suppliers: While most developers will be looking for supplies that adhere to the new energy efficiency standards, some suppliers will still want to sell off their old stock. To avoid being burned, only use a trusted supplier who is happy to prove the energy efficiency of the supplies before selling them to you.
• Not considering your climate: The climate within Australia can vary greatly depending on where you’re developing your units. Not adjusting your plans to the climate will likely reduce your star rating as your assessor will be looking for tailored features that aren’t there. To avoid this, always consider your climate and how this will affect the efficiency of your new build.

Explore other NCC requirements and regulations

• NCC changes 2024
• NCC energy efficiency requirements
• NCC waterproofing requirements
• NCC floor waste requirements class 1
• NCC handrail requirements
• NCC disability access requirements

Get free advice on your energy efficiency from an experienced building broker

Are you still worried about not achieving compliance with the new NCC energy standard, or simply want advice on the climate of your building site before any work goes ahead? Buildi’s team of experts are on hand to help with anything you need, so why not give us a ring at 1300 947 132 or get in touch through our Contact Form for free advice today?