Building energy efficient, cost-saving Aussie homes

For the first time in 11 years, the laws that mandate minimum energy efficiency standards are being reviewed by the states, and right now, we have a chance to shape the outcome.

Under the National Construction Code (NCC), there is a proposal to increase from 6-Star standard homes to 7-Stars, and the decision is being made by the Ministers in July. This is a huge opportunity to improve the quality, comfort and running cost of Australian homes.

Low energy efficiency standards have left too many Australians living in poorly-made homes equated to “glorified tents”, which are stifling during summer and freezing in winter. Australian homeowners also face some of the most expensive energy bills in the world with as many as 85 per cent of Australians experiencing “bill shock” during 2020.

Any delay in introducing new standards will lock in higher bills and emissions. An independent analysis from Australian Sustainable Built Environment Council and ClimateWorks (2018) found that a delay in implementing new standards could mean 1.1 million homes (including townhouses and apartments) will be built to a poorer standard; adding $2 billion to residential energy bills and $720 million in additional network costs. The same analysis found a delay would also add 9 million tonnes of emissions this decade making it more difficult for states and territories to reach their climate targets.

If the new standards are implemented this is a no-brainer pathway for local governments to reach their community net zero targets more quickly and easily. 

The Climate Council produced a new report that found improving minimum energy efficiency standards from 6 to 7-Stars would save Australians an average of $450 per year on heating and cooling costs alone. In addition, a 7-Star all-electric home achieves a 25% reduction in emissions compared to the current minimum standard of a 6-Star all-electric home.

Whether or not minimum standards are improved has a substantial impact on councils, not only in terms of community emissions (noting that the life of a house built today extends a likely 60 years), but also in terms of the day-to-day comfort and safety of residents inside their homes.

Report key findings:

Making new Australian buildings, including homes, more energy efficient will directly save homeowners hundreds of dollars every year in energy bills, and also cut network costs for all energy users.

• Climate Council analysis shows someone building a 7-Star, all-electric house in Australia will save on average $450 per year on heating and cooling costs compared to a 6-Star home; with those in Adelaide, Canberra, Darwin and Hobart saving more.
• Improving energy efficiency in new homes means reduced demand for energy from networks (even when solar is excluded). Considering 1.1 million homes are expected to be built in Australia over the next five years, higher standards could result in reduced need for network expansion and lower capital costs.
• Building a 7-Star home over a standard 6-Star home can be marginally more expensive, but costs substantially less to run every year, from then on.
• Developers are already building 7-Star homes, including some of the country’s largest home builders.

Making new Australian homes more energy efficient will help our country cut emissions and address climate change.

• Climate Council modelling shows a 7-Star all- electric home achieves a 25 per cent reduction in emissions compared to the current minimum standard of a 6-Star all-electric home.
• For every new home built to 7-Stars, the emissions saved each year are equivalent to taking a car off the road for an entire year.
• If we counted all the heating and cooling emissions saved from building 7-Star homes out to 2030 it would add up to total savings of 7.7 million tonnes; equivalent to a 12 per cent reduction on our 2019 national residential emissions.
• Economists calculate the economic benefits of avoiding these emissions over a ten-year period as being at least $90 million and up to $3.5 billion, depending on the cost of carbon factored in.
• Every new 7-Star home that is built in Australia uses a third of the energy needed to heat and cool a 1.5-Star home. These savings are significant given 80 per cent of Australian housing stock was built before the 6-Star standard came into effect.

Key modelling findings by state and territory:

Report highlights:

• State and territory government recommendations to continue improving the energy efficiency of Australian homes: page 37.
• Case studies from builders already working on 7-Star+ homes: page 20-22.
• Co-benefits of improving the energy efficiency explained: Pages 7-12.

How councils can support the proposed update to the National Construction Code:

• Get your community involved: the report is accessible on the Climate Council website here with an explanation for community members. We are asking community members to email their relevant Minister in support of them updating the Code, see here. You can also use these social media tiles on the report to communicate to your community.
• Profile high energy efficiency homes within your municipality: One of the most difficult things with garnering community support for improved energy efficiency is that there is limited understanding on what it means for residents. You can help educated your residents by profiling high energy efficiency homes and experiences of lower bills and greater comfort.
• Contact your Building Ministers’ Forum representative directly: The voice of councils on improving the quality of Australian homes is very powerful, and we would be happy to support you in any communications or meetings secured.