Keeping community comfortable while helping with cost of living

Dept of Climate Change, Energy, Environment & Water

Updates to the National Construction Code (NCC) minimum energy efficiency requirements will help new homeowners save an average of $183 on their power bills every year while making homes more comfortable.

In August 2022, Building and Energy Ministers from across Australia agreed to the new NCC energy efficiency provisions. The changes to the National Construction Code 2022 will make homes more accessible for people with mobility challenges, and increase the energy efficiency and electric-vehicle readiness of new homes.

The updates will increase the minimum level of thermal performance from 6 to the equivalent of 7 stars under the Nationwide House Energy Rating Scheme (NatHERS). In addition, the updates introduce a new a whole-of-home annual energy use budget applicable to the home’s heating and cooling equipment, hot water systems, lighting, swimming pool and spa pumps and onsite renewable energy systems (such as rooftop -solar and batteries).

NatHERS is introducing new energy ratings for the whole home’s performance to support the new NCC requirements. This will help consumers make better decisions about the energy efficiency of their home and appliances, and to help design low energy use homes – supporting Australia’s move to net zero emissions by 2050.

The Decision Regulatory Impact Statement (DRIS) for the NCC changes, available from the Australian Building Construction Board, estimates:

  • house energy bill savings across the jurisdictions of $183 on average each year
  • greenhouse gas reductions of 4.3Mt carbon dioxide equivalent from 2022-2030
  • A household level benefit-to-cost ratio of 1.37 (after accounting for increased construction costs)

Energy efficiency changes to the Code are voluntary from 1 October 2022, with a transition period until 1 October 2023 (but may vary by state and territory).

The measures ensure we are building energy efficient homes for the future.

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