Would you pay more for a new home that is more energy efficient but cheaper to run? Under proposed changes to Australia’s residential building code builders would be required to use more energy-efficient materials and construction methods.

Building a home that is more energy efficient may cost more in the construction phase, but be cheaper to run. Picture: Getty

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The resulting increased efficiency would cut hundreds of dollars from a typical new build’s energy bills each year, but also raise construction costs by thousands.

In Australia, energy-efficient home building requirements are mandated through the National Construction Code, with state and territory bodies applying and enforcing the code through laws and regulations. The code is updated every three years and a formal transition period is attached to each update to help builders and home owners adapt to the changes.

The current code requires new and significantly renovated residential properties to have a six-star energy-efficiency rating, under the Nationwide House Energy Rating Scheme, known as NatHERS. The next update to the code, known as the NCC2022, would require the minimum of six out of 10 stars to be lifted to seven. It is set to begin late next year.

Davina Rooney, chief executive of the Green Building Council of Australia, said the council is “incredibly supportive” of lifting the minimum requirement to seven stars.

“GBCA welcomes improvements to energy standards that will result in more comfortable homes that are cheaper to run,” she said.

“The GBCA has continued to call for lifting minimum standards for residential energy efficiency in the National Construction Code. Going from six to seven NatHERS stars is a fabulous step.”

“The residential sector accounts for 57% of emissions from buildings in Australia. The IPCC report released last week calls for urgent action across the economy, and tackling residential efficiency is a key part of this challenge,” Ms Rooney said.

She said the building industry is making a shift towards the adoption of sustainable building practices.

“Research is highlighting the importance (of this), not just from an energy-efficiency perspective, but also from a health and economic perspective. We know that consumers are starting to ask more from their builders.

“Excitingly, we’re seeing building companies offer more sustainable homes in more locations across Australia, and that means they’re more affordable,” Ms Rooney said.

Arden Homes director Dean Morrison recently told the Herald Sun his firm had found building a seven-star efficient home cost an extra $5,500 for a 270sqm single-storey house, or $9,000 for a 371sqm double-storey home.

He said it would cost a further $3,300 to make either home fully electric, allowing it to take full advantage of solar panels and batteries which could cut $1,600-$2,000 from bills each year.

Ian Fry, the director of Sydney-based Fry’s Energywise, which provides energy and sustainability compliance certification to the residential and commercial construction sectors, said the move from six to seven stars is substantial.

“Achieving a seven-star rating – which I believe is almost guaranteed to happen when the new code is adopted later next year – is a significant shift. There’s just no other way to say it,” he said.

“Getting to seven stars requires achieving something close to what we see in European standards, with absolute minimal energy loss, exceptional insulation, to the point that almost all windows would be double-glazed and other considerations … it’s a high threshold.

“My gut feel is that many in the residential construction industry don’t understand this and what is going to be required to get there.

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“Obviously there has been consultation with industry about the proposed changes and as is always the case, there will be a honeymoon period allowed for its implementation, but this is big, very big and things need to start happening soon,” Mr Fry said.

Mr Fry added that manufacturers, as well as builders, will have to adapt.

“One simple example is double-glazed windows, which will inevitably become more standard. The manufacturers of those need to start getting their head around the jump in demand that’s coming and ensure they have the production capacity, tools and process in place.”

Builders naturally see the increased cost involved in building more sustainable homes, Mr Fry said, which is why government has a role to play in promoting the significant long-term cost benefits of it, as well as adjusting the code to drive change.

“If clients were walking through the door already educated about the value of energy-efficient homes, this would be high on their agenda when deciding on their home builder, most don’t become aware until it’s too late in the build process.

“The majority of new homes are only just meeting minimal compliance now. There needs to be a total mind shift,” he said.

Trent Clark, the owner of Lane Cove’s Red Cedar Constructions, said he is supportive of the proposed changes.

“It’s not that hard, it’s not that expensive,” Mr Clark, whose firm regularly builds more efficient-houses, said.

“If you get volume builders involved, you will create a higher level of quality at a more efficient price. It just makes sense,” he said.