Australian households will soon be able to understand their home's running costs and identify cost-effective upgrades to bring down energy bills for good, with the expansion of an energy ratings scheme by the Albanese Government.
The Nationwide House Energy Rating Scheme (NatHERS) currently provides a standardised approach to rating the energy efficiency of new homes by evaluating the design, materials and construction, as well as considering fixed appliances and on-site energy generation and storage.
The government is now expanding this program to existing homes, with trials underway in partnership with CSIRO, banks and property valuers.
NatHERS energy ratings range from 0-10 stars, with 7 stars recently adopted through the National Construction Code as the benchmark for new home builds in most jurisdictions.
Around 70 per cent of Australia's 11 million existing homes are estimated to have an energy rating of 3 stars or lower.
Improving a home from 3 to 5 stars could reduce the energy needed for heating and cooling by around 40 per cent.
ING will be the first bank involved in trials and, on that basis, selected ING customers who refinance or top up their mortgage will be invited to take part in the free trial.
Banks will cooperate with valuers and NatHERS assessors to provide participating households with trial home energy rating certificates.
Quotes attributable to Assistant Minister for Climate Change and Energy Josh Wilson:
"We want to empower Australians to take control of their home energy use and be able to make informed decisions about upgrades and appliances that will deliver lasting cost of living relief.
"Housing accounts for about 25 per cent of electricity use and more than 10 per cent of emissions, which is why improving home energy efficiency is a key element of the Albanese Government's comprehensive plan to reach net zero by 2050.
"Extending the long-standing and trusted NatHERS to existing homes will give Australians who live in older residences the opportunity to improve the energy efficiency and climate resilience of their homes - to reduce energy costs, improve household health and comfort, while also helping to reduce emissions."
Quotes attributable to ING's Head of Home Loans, George Thompson:
"Household emissions are a major contributor to Australia's carbon footprint.
"At ING we're committed to reducing carbon emissions and that's why we're thrilled to be the first bank in Australia to participate in the NatHERS trial for existing houses.
"We see this trial as a giant leap forward in helping to remove the complexities and confusion that can come with retrofitting your home. With the knowledge gained through this trial customers will have a better indication of what home improvements to prioritise to deliver the best energy efficiency and cost outcomes."
