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What is home energy rating and why it should matter to new house buyer?

13 November 2023

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A home energy rating is a vital metric that assesses the energy efficiency of a residential property. It provides prospective homeowners with valuable information about the energy performance of a house, allowing them to make informed decisions when purchasing a new home. In Australia, this rating is commonly referred to as the NatHERS (Nationwide House Energy Rating Scheme) rating, which is a standardised method for assessing the energy efficiency of residential buildings.

What do Star Ratings mean?

Star ratings serve as a critical indicator of a home’s energy efficiency and overall comfort. The higher the star rating, the more comfortable and cost-effective the home is to inhabit, while lower star ratings indicate greater expenses associated with maintaining comfort. This rating is typically expressed on a scale from 0 to 10 stars, with a higher number indicating better energy performance. It is a valuable tool that empowers buyers to make informed decisions, helping them choose a home that aligns with their financial, environmental, and comfort-related goals.

What energy rating is acceptable?

Australia has been progressively raising the bar for energy efficiency in residential buildings. One notable fact is that since 2022, all new homes built in Australia must achieve a minimum 7-star energy rating, as mandated by the National Construction Code. This requirement reflects the country’s commitment to enhancing the energy performance of residential buildings and promoting sustainable living.

minimum home energy rating in Australia

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A general overview of the energy ratings:

Here is a general guide to the Australian efficiency rating as per Nathers Assessment.

  • A 0-star rated home is characterised by discomfort, with extreme temperature fluctuations—sweltering in summer and frigid in winter. Such existing homes demand substantial energy consumption for heating and cooling, leading to elevated operational costs.
  • A dwelling achieving a 7-star rating signifies a notable level of energy efficiency. While it may necessitate some mechanical heating and cooling solutions to maintain comfort, it is a considerable improvement over lower-rated homes.
  • At the pinnacle of energy efficiency requirements is the 10-star home. These exceptional properties remain comfortable throughout the year, with minimal or even no reliance on mechanical heating or cooling appliances. Such homes exemplify the zenith of sustainable and cost-effective living.


If you are in Sydney, NSW and on the hunt for an energy-efficient dream home that aligns with the highest standards of comfort and sustainability, look no further than Dhursan Construction. Our commitment to excellence in home construction and energy efficiency is unmatched. 


What is a good energy rating of a home in Australia?

In Australia, every new residential construction project or substantial renovation is obligated to adhere to a baseline of seven-star energy efficiency, with specific criteria varying by state or territory. Opting for a 7-star energy rating when embarking on the construction of a new home or extensive refurbishments is a commendable choice to enhance the overall energy efficiency of your residence.

This mandate, set forth by the Australian government through the National Construction Code, is a pivotal step toward elevating the energy efficiency standards for homes across the country. In essence, this requirement signifies a concerted effort to bolster home energy efficiency by implementing higher standards and enhancing the performance of fixed appliances and building structures.

Also Read: Benefits of Energy-Efficient Home Design in Australia 

Requirements for each Energy Star rating

Energy assessors employ NatHERS computer modelling tools to anticipate the heating and cooling requirements necessary for maintaining year-round comfort in your apartment or house. This prediction is rooted in the energy-efficient design, materials, and construction of the dwelling, encompassing factors such as:

  • The configuration and orientation of the home.
  • The composition and construction methods of the roof, walls, windows, and flooring.
  • The provision of shading to shield against the sun’s path and the optimal utilisation of local breezes for natural ventilation.
  • The capacity of the dwelling to harness locally generated energy.

The requirements for each star rating in the context of energy efficiency in Australia are as follows:

6-Star Rating:

  • Adequate insulation in the roof and walls.
  • Efficient windows and doors to minimise heat transfer.
  • Improved sealing to reduce air leakage.
  • Energy-efficient fixed appliances.
  • Potentially some solar hot water or photovoltaic panels.
  • Consideration of orientation and shading to manage heat gain and loss.

7-Star Rating:

  • Enhanced insulation throughout the building.
  • Higher-quality windows and doors with improved glazing.
  • Advanced sealing measures for reduced air infiltration.
  • More energy-efficient fixed appliances.
  • Potential for increased use of renewable energy sources like solar power.
  • Careful attention to orientation and shading for optimised thermal performance.

8-Star Rating:

  • Exceptional levels of insulation throughout the building, surpassing standard requirements.
  • High-performance windows and doors with advanced glazing.
  • Extremely airtight construction to minimise air infiltration.
  • Utilisation of energy-efficient fixed appliances, lighting, and heating/cooling systems.
  • Considerable use of renewable energy sources like solar panels and potentially on-site energy generation.
  • Meticulous attention to orientation and shading for superior thermal performance.
  • Advanced building design and materials to minimise energy consumption.

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9-Star Rating:

  • Superlative insulation, going beyond standard expectations.
  • State-of-the-art windows and doors with the highest quality glazing.
  • Virtually hermetic construction to eliminate air leakage.
  • Implementation of the most energy-efficient fixed appliances, lighting, and HVAC systems available.
  • Extensive use of renewable energy sources such as substantial solar panel arrays.
  • Precise orientation and shading techniques to optimise energy efficiency.
  • Cutting-edge building design and materials that push the boundaries of energy conservation and sustainable living.

10-Star Rating (Maximum):

  • Exceptional insulation, often exceeding standard requirements.
  • Top-tier windows and doors with advanced glazing.
  • Virtually airtight construction to minimise air leakage.
  • Utilisation of energy-efficient fixed appliances and lighting.
  • Extensive use of renewable energy sources, such as solar panels and energy-efficient heating and cooling systems.
  • Meticulous consideration of orientation and shading for superior energy efficiency.

Energy-efficient appliances in our existing homes!

In the arena of real estate, few things are as crucial as making informed decisions when it comes to your future home. That’s where home energy ratings, particularly in Australia, play a pivotal role. Dhursan Construction’s commitment to efficient energy use is reflected in our accreditation with the Residential Efficiency Scorecard Assessment program.


In your quest for the perfect home, don’t just follow the stars- choose a builder who can help you reach for them! Dhursan Construction is here to turn your dream of an energy-efficient, comfortable, and cost-effective home into a reality. Contact us today to explore our range of energy-efficient homes and experience a brighter, more sustainable future!

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