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What does a 7 Star Energy Rating mean?

A Star Rating, also known as a NatHERS rating, meaning Nationwide House Energy Rating Scheme, is a standardised method of assessing a home's energy efficiency to ensure homes are constructed to meet the requirements of the National Construction Code (NCC).

A star rating is out of 10 and considers a home’s design, orientation, construction materials, as well as the local climate

What is the NatHERS Rating Scale?

To calculate your home's efficiency, a rating between 0 and 10 is used. With 10 Stars representing the highest level of energy efficiency and 0 Stars the lowest.

The lower the energy consumption of your home, the higher its rating and the lower you can anticipate your energy bills to be.

NatHERS ratings are determined through computer simulations based on factors such as building materials, orientation, insulation, window placement, and climate zone. Builders and homeowners can use these ratings to make informed decisions about design features and upgrades that can improve energy efficiency and reduce energy costs.

The Benefits of a 7 Star Energy Rating

You may be wondering why our building standards are increasing to a 7 star energy rating? Here are the main ones!

Lower energy bills

One of the primary benefits of a 7 star energy rating is reduced energy consumption, leading to lower electricity bills. A more energy efficient home requires less energy to maintain comfortable indoor temperatures, resulting in significant cost savings over time.

Increased comfort

Higher energy efficiency often translates to improved comfort levels inside the home. Proper insulation, sealed windows and doors, and efficient heating and cooling systems help maintain more consistent temperatures throughout the year, reducing drafts, cold spots, and overheating during extreme weather conditions.

Environmental sustainability

Buildings with higher energy ratings have a smaller carbon footprint due to reduced energy consumption. By using less energy for heating, cooling, and electricity, homes with a 7 star energy rating contribute to environmental sustainability by lowering greenhouse gas emissions and conserving natural resources.

Improved indoor air quality

Energy efficient homes are often designed with a focus on ventilation and air quality. High-performance building materials and mechanical systems help to minimise indoor pollutants, such as volatile organic compounds (VOCs) and allergens, creating a healthier living environment.

Health and Wellbeing Benefits

Energy efficient homes often incorporate features that promote occupant health and wellbeing, such as natural daylighting, thermal comfort, and acoustic insulation. These factors can contribute to reduced stress, improved productivity, and overall satisfaction with the living environment.


7 Tips for 7 Stars

Shading


Shading plays a crucial role in Australian home construction across varying climates. In hot regions, it mitigates excessive heat gain, reducing reliance on air conditioning and lowering energy costs.
Conversely, in cooler climates, proper shading preserves warmth, enhancing comfort and energy efficiency. Strategically implemented shading ensures year-round comfort and sustainability.

Insulation


Insulation is vital for maintaining energy efficiency in Australian homes, regardless of climate. Adequate insulation regulates indoor temperatures, reducing reliance on heating and cooling systems, providing a comfortable and healthy home.

Proper insulation ensures year-round comfort and lower energy bills.

Occupants


How we behave within a home significantly impacts its energy efficiency. Proper use of appliances, lighting, and heating/cooling systems will drastically reduce energy consumption.
Simple actions like turning off lights when not in use or adjusting thermostat settings contribute to a more sustainable and cost-effective living environment.

Design for climate


The climate for your region will determine the most effective design strategies for your home – a cool region will require different strategies from a tropical region.

Your building design and heating/cooling method need to work together.

Understand glazing


Arranging windows for optimal orientation is likely to result in a home that performs better.
Ensure efficient seals are installed on openings to reduce unwanted drafts.

Consider the dimensions and positioning of windows and shading

Orientation


Proper orientation optimises natural light and heat, reducing need for artificial lighting and heating or cooling systems. In hot areas, a well-oriented home minimises heat gain, while in cooler regions, it maximises solar heat gain, aiding energy efficiency and comfort year-round.

Thermal Mass


Thermal mass is an important factor in ensuring a comfortable and energy-efficient home, no matter if it's a hot or cool climate. It works like a temperature buffer, soaking up heat slowly and releasing it later.

In the heat, it keeps things cool, and in the cold, it holds onto warmth.

How do I find my home or building’s Star Rating?

Various assessors in Australia can obtain a NatHERS rating certificate for your home, so do take the time to shop around. It is important to note that only Accredited Assessors can provide a Star Rating Certificate.

NatHERS assessors are required to undergo specialised training and adhere to professional quality assurance standards and a code of conduct. The importance of early engagement with an Accredited Assessor should not be underestimated. Early-stage discussions with an assessor can save you from making costly design mistakes.

To find an Accredited Assessor, you can reach out to one of the three Assessor Accrediting Organisations linked below.


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7 Star Energy Efficiency Requirements

The requirements for 7-star energy efficiency in Australia vary slightly by state, but they all follow guidelines set by the National Construction Code (NCC) 2022. Here’s a summary of the key dates for each state and territory:

Victoria 7 Star Energy Efficiency Requirements

All new homes built in Victoria from 1 May 2024, must comply with the 7 star energy efficiency rating requirements.

Queensland 7 Star Energy Efficiency Requirements

In Queensland, the new 7 star energy rating for houses and townhouses (Class 1 buildings) also came into effect on 1 May 2024. 

New South Wales 7 Star Energy Efficiency Requirements

New South Wales adopted the 7 star energy efficiency rating standard under the Building Sustainability Index (BASIX), which was mandatory from October 2023. 

South Australia 7 Star Energy Efficiency Requirements

South Australia implemented the 7 star energy efficiency requirements for new residential buildings on 1 October 2024. 

Western Australia 7 Star Energy Efficiency Requirements

Western Australia started transitioning to the NCC 2022 guidelines, with full implementation expected on 1 May 2025. 

Tasmania 7 Star Energy Efficiency Requirements

The Tasmanian Government has decided to maintain the mandatory 6-star rating for all new homes until at least 2025.

Northern Territory 7 Star Energy Efficiency Requirements

The Northern Territory has decided to limit its energy efficiency requirements to a 5-star rating as of 1 October 2023. 

Australian Capital Territory 7 Star Energy Efficiency Requirements

The ACT adopted the NCC 2022 guidelines for 7 star energy efficiency in full on 15 January 2024.

FAQ

When do the 7 star energy rating requirements apply?

The 7-star energy efficiency requirements in Australia vary by state, based on the National Construction Code (NCC) 2022:

  • Victoria: From 1 May 2024 
  • Queensland: From 1 May 2024 
  • New South Wales: From 1 October 2023 
  • South Australia: From 1 October 2024 
  • Western Australia: From 1 May 2025 
  • Tasmania: Continuing with a 6-star rating until at least 2025 
  • Northern Territory: 5-star rating as of 1 October 2023
  • Australian Capital Territory: From 15 January 2024

What is the difference between a 6 and 7 star energy rating?

As there are many different elements to achieving 7 star energy efficiency, the difference between 6 and 7 stars will vary depending on the specific element of the home. Certain states may also have different specific requirements. To give you a broad overview:

Design Features

6-Star Rating: Homes with a 6-star rating include basic insulation and energy-efficient glazing. They may lack comprehensive passive design features such as optimal orientation and strategic shading 

7-Star Rating: Homes with a 7-star rating incorporate advanced design elements like high-performance glazing, north-facing living areas, effective shading devices, and strategic window placement. 

Thermal Performance

6-Star Rating: These homes have moderate levels of insulation and use basic materials with lower thermal resistance (R-values), which provides a standard level of thermal comfort.

7-Star Rating: These homes require higher levels of insulation using materials with higher R-values. They also include improved thermal breaks to reduce heat transfer through windows, walls, and roofs, along with better sealing to minimise unwanted heat loss or gain.

Will the 7-star energy rating system be extended to existing homes?

No, the 7 star energy rating system is not currently expected to roll out any changes for existing homes. The focus remains on new builds and major renovations. While NatHERS is working on expanding its ratings to include existing homes, this will not be implemented until the future. Until then, existing homes will not be subject to the same energy efficiency requirements as new constructions.

Are there any exemptions or exceptions to the 7 star energy rating requirement?

The implementation of the 7-star energy rating requirement includes several exemptions and exceptions to accommodate different conditions and regional circumstances. Here are the key details:

Queensland:

Outdoor living area credits: Homes can earn up to a one-star credit for integrating well-designed outdoor living areas that meet specific criteria like being fully covered and connected to an indoor living area

Small and narrow lots: Exemptions are available for narrow lots (less than 12.5 metres wide) and small pre-built houses (under 55 square metres).

New South Wales

BASIX flexibility: The Building Sustainability Index (BASIX) is a sustainability assessment tool that is unique to New South Wales. Specific BASIX exemptions may apply for unique building conditions or constraints.

Western Australia

Specific exemptions: Certain exemptions are provided based on local climatic and building conditions, particularly for challenges related to building in remote areas. This ensures that energy efficiency standards are met without imposing undue burdens on builders and homeowners in different regions.

General Exemptions and Flexibility

Thermal bridging adjustments: Adjustments in the calculations for thermal bridging are allowed to ensure that materials and designs effectively contribute to energy efficiency. 

Whole of home assessment: Allows trade-offs between different energy-saving measures and appliances to achieve overall energy efficiency in a practical manner. This approach helps achieve overall energy efficiency targets in a more adaptable and practical manner.


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