What are the 7-star energy rating requirements?

In 2022, the minimum energy rating for new houses increased from 6 to 7 stars [1], which is now the minimum standard set for energy efficiency. These new standards were properly introduced from 1 October 2023 in most Australian states and territories. [2]

Building an energy-efficient home all starts with impactful design and the orientation of the building. Alongside building for your local climate and making allowances for shade and solar access, you will be in a good position to receive a 7-star rating. 

Building a home with these factors in mind means our homes are becoming more comfortable, more resilient to weather and more energy-efficient over time.

The Nationwide House Energy Rating Scheme (NatHERS) was created by the Energy and Climate Change Ministerial Council and developed by state and territory energy agencies and the Australian Government to provide a standardised approach to the thermal performance of Australian homes. [1]

Over time, the scheme was adopted to support the regulation of new building regulations in all Australian state and territory governments.

NatHERS assessments are used to meet minimum energy efficiency requirements set by the National Construction Code.

As of 2022, around 90% of new home designs were assessed using NatHERS software. [1]

The assessment is used to deliver information about the thermal performance (heating and cooling needs) of a new home, major renovation or existing home. 

A NatHERS star rating (out of ten) is based on hundreds of factors. 

Some of these factors include:

• Home design  

• Orientation 

• Construction materials

• Local climate 

While the NatHERS Whole of Home rating (out of 100) includes the energy performance of the following appliances: 

• Hot water, heating and cooling systems 

• Lighting, cooking and plug-in appliances 

• Pool and spa equipment 

• Solar energy generated onsite (solar panels) and battery storage 

The Whole of Home rating is also used as an overview of your home energy costs and greenhouse gas emissions.

If you're building or renovating a residential building, you should engage a NatHERS assessor early in the process to comply with the National Construction Code's energy efficiency standards.  

Achieving a 7-star energy equivalence rating starts at the building's foundation and is strengthened through passive design principles. Small design changes can help maintain a comfortable temperature in the home or take advantage of natural sources of heating and cooling.

Designing your home for the climate zone you live in will ensure your home stays at a comfortable temperature all year round and uses less energy for heating and cooling.

Passive heating, or passive solar heating, is when heat is trapped from the sun inside a home and stored, distributed and retained using thermal mass, heat flow and insulation. 

The best way to use passive heating is to build living areas on the north side of your home.  You can also add north-facing windows so that sunshine reaches thermal mass materials, which absorb, store and release heat energy.

Other ideas include adding heaters near thermal mass areas and building airlock rooms, sealing around doors, windows and roof space to keep cold air out.

Passive cooling aims to reduce heat gain and increase heat loss. 

The most important decision to make when it comes to passive cooling is whether you will add any air conditioning units, ceiling fans or both and how this will impact your home design. 

Increased insulation, shading both inside and in outdoor living areas, and window placement can also contribute to passive cooling overall.

The orientation of a building refers to how it is positioned about the sun’s path and the wind across different seasons. 

The path of the sun in Australia is to the north. And this is why north-facing rooms get the most sunlight for the longest period of the day in winter and are easily shaded by the eaves of the roof in Summer. 

However, the best orientation for your home is the one that is best suited to your climate.

Thermal mass refers to how a material absorbs, stores and releases heat. The rate at which a material releases heat is called thermal lag. 

Building materials with high thermal mass and long lag times, including concrete, brick and stone, can be used in your floor and in your walls.

In mixed climates, thermal mass can passively heat and cool your home when heating is needed in the winter and cooling in summer.

Adding insulation will help slow down or stop the flow of heat in your home. 

The climate of your home and its construction type will determine the type of insulation that is best suited for your home. 

Insulation products include:

• Bulk insulation - Air pockets within a thick material to slow the flow of heat. 

• Reflective insulation - Reflects radiant heat. 

• Composite insulation - Combines bulk insulation with a reflective material.

We recommend hiring a licensed professional to install your insulation to ensure they are meeting all required standards. Complying with the applicable standards will prevent the risk of fire hazards by meeting minimum clearances around fittings such as electrical cables and downlights.

Appropriate glazing (in a northern orientation) can help keep solar warmth inside the building. 

While single, double and triple-glazed windows will allow your home to gain solar heat, double and triple glazing will also stop your home from losing heat. 

In existing buildings, you can also use coverings such as curtains or blinds to improve the thermal performance of your windows.

Shading is suitable in warmer tropical climates, helping to block unwanted sun in the summer and still giving solar access in winter. 

However, shading is also used on east and west-facing walls to gain access to the winter sun. 

Shading can be either:

• Fixed - Eaves, fences and evergreen trees
• Adjustable - External louvres, pergolas with adjustable shade cloths, blinds and trees.

Skylights and roof windows are predominantly used to let natural light into your home. And depending on the roof space, you’ll want to ensure the placement allows light to enter your home without excessive heat.

Ventilation can either be natural (windows) or mechanical (ceiling fans) and is part of maintaining good air circulation and air quality in your home.

Airtightness reduces the amount of cold air entering your home in winter and hot air in summer. Loss of air is usually caused by poorly sealed glazing or an outside wall.

The climate in which you live will ultimately determine your home’s risk of condensation. 

However, to reduce the risk of condensation (in a well-ventilated home), you’ll need to choose an insulation material, such as reflective insulation, to avoid damp, mould and rot. 

It’s also recommended that you reduce thermal bridging (reduce direct paths for cold to reach inside surfaces) in your home. Using insulation in building frames and glazing units will help to minimise heat transfer between building elements and reduce thermal bridging.

There are multiple benefits associated with building, renovating or making updates to an existing home to achieve a 7-star energy rating.

According to data from Finder sourced in August 2025, occupants in Queensland pay the highest average power bill every quarter. This is followed by power bills in New South Wales and South Australia. 

In a report from 2022, the Climate Council found that occupants who lived in a 7-star all-electric house in any capital city in Australia would save $450 per year on heating and cooling costs. While occupants in Adelaide, Canberra, Darwin and Hobart would save more. [4]

Building more energy-efficient homes will not only save homeowners money on energy bills but also save on network costs for all energy users.

Maintaining a consistent temperature, reducing drafts and improving indoor air quality are all major factors when it comes to living comfortably. 

Building for your climate zone using passive heating and cooling techniques, such as using thermal mass materials and insulation, will help maintain a consistent temperature throughout your home. 

Using appropriate shading or glazing can help to reduce drafts, while having proper ventilation and airtightness (where needed) will contribute to the quality of air in your home.