Victoria’s New 7 Star Energy Efficiency Standards and What They Mean for a New Home

We want to share some exciting updates about Victoria’s new energy efficiency standards that will take effect from 1 May 2024. These changes are crucial for any new home construction—be it detached houses, townhouses, or apartments—and are designed to meet both environmental and economic needs for the future. The implementation of the National Construction Code (NCC) 2022 introduces substantial enhancements that aim to make homes more sustainable and cost-effective.

What’s Changing in the New Standards?

• Building Shell Efficiency: The minimum efficiency requirement for new home constructions—covering insulation, window glazing, and more—will increase from 6 to 7 stars according to the Nationwide House Energy Rating Scheme (NatHERS).
• Whole-of-Home Energy Budget: A new annual energy use budget will cap the energy usage of fixed appliances such as heating, cooling, and lighting. This is to encourage the use of energy-efficient appliances with an option to offset excess energy use with rooftop solar installations.
• Flexibility in Eco-friendly Installations: The updated standards will remove the Victorian-specific mandate for solar water heaters or rainwater tanks, giving homeowners the freedom to choose their preferred systems.

Practical Benefits of the Updated Standards

• Cost Savings: Improved efficiency standards are anticipated to reduce household energy bills*
• Enhanced Comfort: Energy-efficient homes maintain comfortable indoor temperatures throughout the year, protecting residents from that unpredictable Melbourne weather.
• Reduced Greenhouse Emissions: By improving home energy efficiency, these standards contribute to Victoria’s goal of reducing greenhouse gas emissions, aiming for net-zero by 2050.
• A More Sustainable Energy Grid: Enhanced efficiency reduces peak demand on the electricity grid, decreasing the need for costly network upgrades.

Implications for Homebuilders and Buyers

Achieving a 7-star rating is generally simple, especially if energy-efficient design principles are integrated at the early stages of home design. These may include optimising the home’s orientation to maximise natural heating and cooling, improving insulation, and installing high-performance window glazing.

For more information visit: https://www.energy.vic.gov.au/households/7-star-energy-efficiency-building-standards

*Analysis undertaken for NCC 2022, showed the new efficiency standards would save an average Victorian household at least $300 a year in energy bills.