The Albanese Government is helping to reduce energy bills and build resilience in a changing climate by investing $32.7 million to extend a world-leading home energy rating scheme to more Australian households.
For 30 years, the Nationwide House Energy Rating Scheme (NatHERS) has rated the energy efficiency of new homes by evaluating their design, materials and construction, as well as considering fixed appliances and on-site energy generation and storage.
This funding boost means that from mid-2026 NatHERS will be opened more widely to existing homes, to provide energy ratings and information about energy upgrades.
Just like energy star ratings for household appliances, the home energy rating is designed to inform renters and homebuyers upfront about the energy efficiency of a home and how much it will cost to run.
Around 70 per cent of Australia's 11 million existing homes were built before the introduction of minimum energy efficiency standards, with an estimated average energy rating of below 3 stars.
Even improving a home from 3 to 5 stars could reduce the energy needed for heating and cooling by around 40 per cent with a corresponding reduction in costs and emissions.
Under the program, NatHERS assessors provide participating households with home energy rating certificates, which include practical information on the most cost-effective upgrades available for the home.
NatHERS star ratings range from 0-10 stars, with 7 stars adopted through the National Construction Code as the minimum for new home builds in most jurisdictions.
Trials of existing home ratings have seen the government work with energy assessors, the CSIRO, valuers and four major banks to provide ratings to interested households.
Initial release of the new ratings capacity was extended to targeted groups in July following trials throughout 2025.
Quotes attributable to Assistant Minister for Climate Change and Energy Josh Wilson:
"The NatHERS model is a proven winner, and this funding will enable more Australians to make informed choices about their homes in order to realise savings on their energy bills and enjoy more comfortable homes in a changing climate.
"We've been using NatHERS for new home designs for 30 years, it is trusted by the market, and the Productivity Commission has described it as 'world leading'.
"The National Climate Risk Assessment clearly shows that hazards such as heatwaves will continue to intensify in the coming decades. Taking practical steps to improve energy performance in our homes will be critical to support Australians in their efforts to adapt to the impacts from climate change.
"This announcement forms part of a wider package under the Albanese Government's Built Environment Sector plan to reduce the energy we use, lower costs for households, cut emissions, and create more liveable, resilient spaces."
