Bruce’s home was ‘like a damn tent’. A new energy rating is guiding upgrades

Bruce Pearson’s Blue Mountains weatherboard cottage, a 1930s-era home he has lived in for two decades with his wife Rose and daughter Lilli, was described as “like a damn tent” during a recent home energy rating assessment. The evaluation, conducted at the suggestion of his bank as part of New South Wales' trial expanding energy ratings to existing homes, revealed the house scored just 1.2 stars out of 10. This low rating underscores the widespread inefficiency of many older Australian homes, which often lack proper insulation and modern energy-saving features. The expansion of the Nationwide House Energy Rating Scheme (NatHERS) to include existing homes marks a major shift in Australia's approach to residential energy efficiency. Previously, only new constructions were required to meet a minimum of seven stars out of 10. Now, under the newly renamed Home Energy Ratings system, existing homes can also receive assessments. This change, effective July 1, allows homeowners, buyers, and renters to better understand and improve the energy performance of their dwellings. Experts emphasize the significance of this transition. Jacob Caine, president of the Real Estate Institute of Australia, called it “one of the most important transitions of our residential built environment in generations.” He noted that the average Australian home scores around two to three stars, meaning many households suffer from poor thermal performance, resulting in uncomfortable temperatures, higher utility bills, and increased environmental impact. Upgrades, he argues, offer a chance to create more sustainable, affordable, and livable spaces. The implications extend beyond individual comfort. The ratings provide valuable data for banks assessing loan applications, as improved energy efficiency can lead to reduced operating costs and greater financial stability for homeowners. Assistant Minister for Climate Change and Energy, Josh Wilson, highlighted the importance of these tools in helping Australians achieve more affordable and comfortable housing. “Australians deserve homes that are comfortable to live in and affordable to run,” he stated. Governments at both state and federal levels are actively promoting energy efficiency initiatives. In New South Wales, a trial has been completed that enables home energy ratings to be shared when properties are listed for sale or lease. As part of this effort, the state has introduced a new loan and discount program offering zero-interest loans ranging from $2000 to $15,000 to support assessments and energy-saving improvements. Similarly, Victoria has launched an energy upgrades program providing rebates and discounts on products like hot water heat pumps, aiming to lower power bills and reduce greenhouse gas emissions. Looking ahead, there are indications that energy efficiency requirements may become even stricter. The Victorian government plans to implement minimum rental standards related to energy efficiency starting in March of next year. These regulations will require landlords to address issues such as insulation, draught-proofing, and appliance upgrades, ensuring that rental properties meet basic energy performance benchmarks. Real estate professionals are also adapting to the growing demand for information on energy efficiency. Cecille Weldon, founder of Future Agent, an academy for real estate agents, notes that home buyers and potential tenants are increasingly inquiring about energy performance. While current ratings are primarily used by those considering renovations, she predicts they may soon become mandatory for home sales and rentals. For now, platforms like Domain and Realestate.com.au have begun incorporating energy efficiency into their standard listing features, making this crucial information more accessible to the public. As the rollout of home energy ratings continues, the focus remains on empowering homeowners with actionable insights and supporting broader efforts to reduce energy consumption and carbon footprints. With programs like NSW’s loan initiative and Victoria’s rebate scheme already underway, the path toward more efficient and sustainable housing appears to be gaining momentum.