Energy Rating
Your Home Must Hit 7 Stars.
The Assessment Happens after Signing
Energy Ratings - What Buyers Often Don't Discover Until After Signing
Every new home built in Australia must meet a minimum energy efficiency standard before a building consent can be issued.
In South Australia and Victoria, that standard is currently 7 Stars under the Nationwide House Energy Rating Scheme commonly referred to as NatHERS.
Most buyers are aware that an energy rating is required. What many don't realise is how significantly the rating process can affect the final design and cost of their home.
How the Rating Works
A NatHERS rating is calculated using accredited software that models how a specific home design performs thermally on a specific block, in a specific orientation.
That last point matters more than most people realise.
The same floorplan can perform very differently depending on:
- Which direction the home faces
- Where windows are positioned relative to the sun
- The size and placement of glazing
- The ceiling height and roof construction
- The insulation specification
- The climate zone the block sits in
A design that achieves 7 Stars on one block in one orientation may not achieve 7 Stars on a different block facing a different direction without modification.
Are You Prepared and Surprises Minimised?
When a standard design doesn't achieve the required rating on a specific block, builders and their energy assessors work through a compliance pathway.
Common solutions include:
- Upgraded insulation to the ceiling, wall or underfloor
- Reduced or relocated glazing
- Double-glazed windows in place of standard single-glazed
- Window films or external shading devices
- Upgraded bulk insulation in the roof
- Changes to ceiling heights or roof pitch
Some of these items are low cost. Others, particularly double glazing across a large home can add meaningful expense.
The issue for buyers is that the energy rating assessment is typically completed after the building contract is signed and drawings are progressed. At quote stage, builders generally include a standard energy compliance allowance, but that allowance is based on assumptions, not a completed assessment.
What This Means for Your Contract
Building contracts typically include a clause that allows the builder to pass through additional costs if the energy rating assessment identifies compliance requirements beyond what was originally allowed.
This is a legitimate and generally reasonable clause.
But buyers are often unaware it exists, or don't understand how it operates, until a variation is presented after signing.
Understanding this clause before you commit and asking what the standard allowance covers is one of the more practical questions you can ask at contract review stage.
What to Ask Before You Sign
- Has an energy rating assessment been completed for my specific block and orientation?
- What is included in the standard energy compliance allowance in my contract?
- If additional compliance measures are required, how will those costs be handled?
- Are double-glazed windows or upgraded insulation already included, or are these potential variations?
Clarity Before Commitment
Energy rating requirements are a fixed part of the building approval process.
They are not optional, and they cannot be deferred.
Understanding how your contract handles energy compliance before you sign means you're prepared and not surprised if additional measures are required.
Unsure about your contract before signing?
An independent review can help you understand what's included and where costs may change.
Review My Contract www.landandbuildclarity.com.au
Disclaimer
Land and Build Clarity provides independent contract review and practical guidance.
We are not builders, developers, land agents, conveyancers or solicitors.
The information provided is general in nature and does not constitute legal advice.
Clients should seek independent legal advice before entering into any binding agreement.
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