Is Your Home 7-Star Ready? Australia’s New Energy Rating Laws

Australia is raising the bar for energy-efficient homes. The Australian 7-star energy rating laws now require new homes to meet stricter energy performance standards under updated building codes. These changes aim to reduce energy use, cut emissions, and improve comfort for homeowners.

If you’re building or renovating, understanding the Australia 7-star energy rating laws is essential. The good news? Smart design, insulation, and solar can make compliance easier—and cheaper over time.

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What is the 7-star energy rating?

The 7-star energy rating is a standard set by the Nationwide House Energy Rating Scheme (NatHERS). It measures the thermal performance of a home’s “shell,” including its walls, roof, windows, and floors.

A 7-star rating indicates a highly efficient home that requires significantly less energy for heating and cooling. Compared to the previous 6-star standard, a 7-star home typically uses 20–25% less energy to maintain a comfortable indoor temperature.

This shift isn’t just about labels; it’s about creating “climate-resilient” housing. With Australian summers getting hotter, these laws ensure new builds can handle extreme weather without relying solely on expensive air conditioning.

The two pillars of the new energy laws

The updated NCC 2022 regulations are built on two main requirements that every new homeowner and builder must navigate.

1. Thermal performance (The star rating)

This pillar focuses on the building fabric itself. To achieve a 7-star energy rating, designers must prioritise passive solar principles. This includes better insulation, high-performance glazing, and smarter orientation to catch winter sun while blocking summer heat.

2. Whole-of-home energy budget

For the first time, the code includes a “Whole-of-Home” assessment. This looks at the energy consumption of fixed appliances, such as:

Heating and cooling systems.
Hot water units (often recommending heat pumps).
Lighting and pool pumps.
On-site renewable energy (like solar PV systems).

New homes must stay within a specific energy budget, which can be balanced by installing energy-efficient appliances or offsetting use with solar panels.

Why the move to 7 stars matters

The transition to a 7-star energy rating provides immediate and long-term benefits for Australian households. While there may be slightly higher upfront construction costs, the return on investment is substantial.

Lower energy bills: Reduced reliance on mechanical heating and cooling means hundreds of dollars in annual savings.
Enhanced comfort: Higher stars mean fewer “cold spots” in winter and a cooler interior during heatwaves.
Higher resale value: Research suggests that energy-efficient homes command a premium in the real estate market, as buyers seek to avoid future energy price hikes.
Environmental impact: Residential buildings contribute significantly to Australia’s emissions; 7-star homes are a key step toward the nation’s Net Zero 2050 goal.

How to achieve a 7-star energy rating

Achieving the 7-star energy rating doesn’t have to be complicated if you plan early. Designers and builders are now using “first principles” to reach the target without breaking the bank.

Optimising orientation

Orientation is the most cost-effective way to boost your rating. By placing living areas toward the north, your home can soak up free warmth in winter. Conversely, minimising western windows prevents the harsh afternoon sun from overheating your home in summer.

High-performance glazing

Windows are often the “weakest link” in a home’s thermal envelope. Moving to double-glazing or low-emissivity (Low-E) glass is often necessary to meet the 7-star rating. These windows act like a thermos, keeping the heat where you want it.

Superior insulation

Increasing the thickness and quality of insulation in the ceiling and walls is a staple of 7-star design. It is also important to address “thermal bridging”—heat escaping through the building’s frame—by using thermal breaks or specific cladding materials.

Sealing and ventilation

A 7-star home must be well-sealed to prevent draughts. However, good design also includes “cross-ventilation” pathways. This allows evening breezes to naturally flush out heat, reducing the need to turn on the air conditioner.

The role of solar in the 7-star era

While the 7-star energy rating primarily measures the building’s shell, solar power is the “secret weapon” for the Whole-of-Home requirement. Under the new rules, installing a solar PV system can provide a significant “credit” toward your energy budget.

For many builders, adding solar is more cost-effective than installing excessive amounts of insulation. It allows for more flexible design choices, such as larger windows, while still meeting the overall legal energy limit.

Moreover, as electricity prices remain volatile in 2026, solar energy combined with battery storage ensures your 7-star home is truly independent.

Ready to future-proof your home? Energy Matters can help you find the best solar and battery solutions to meet and exceed the new standards.

Use Energy Matters’ easy-to-use solar power and battery storage calculator to determine the size of your solar system with storage! Our solar calculator will generate performance information and potential savings.

We can send this information to 3 of our pre-vetted, trusted local installers in your area to receive obligation-free solar quotes and take the first step toward true energy independence!

Tips for homeowners and builders

If you are starting a project today, it is vital to involve your NatHERS assessor during the concept stage. It is much cheaper to move a window on a floor plan than to change it once construction has begun.

Select light colours: Lighter roofs and external walls reflect more solar radiation, which is a “free” way to improve ratings in warmer climates.
Install ceiling fans: In many climate zones, installing ceiling fans in habitable rooms can significantly boost your star rating.
Upgrade the water heater: Moving from traditional electric or gas storage to a high-efficiency heat pump is one of the fastest ways to pass the Whole-of-Home test.
Reduce downlights: Every hole in the ceiling for a non-IC4-rated downlight is a path for heat to escape. Use surface-mounted lights or IC4-rated LEDs that can be covered by insulation.

Sources: National Construction Code (NCC) 2022-ABCB, Nationwide House Energy Rating Scheme (NatHERS)

Beyond 7 stars: The future of Australian homes

While 7 stars is the new minimum, many forward-thinking Australians are aiming for 8, 9, or even 10 stars. An 8-star home, for example, requires roughly 40% less energy than a 6-star home.

As the technology for “Net Zero” homes becomes more affordable, the 7-star energy rating is simply the foundation. By combining a high-performing building shell with smart technology and renewable energy, you can effectively eliminate your electricity bills.

How Energy Matters can help

Understanding the Australian 7-star energy rating laws can feel overwhelming. But you don’t have to navigate it alone. Energy Matters helps Australians transition to smarter energy solutions. With expert advice, you can: