If you’re planning a new home or major renovation, you’ve probably heard a lot about “7-star energy certificates.” In short: Australia has lifted the minimum thermal performance for new homes from 6 stars to 7 stars under the National Construction Code (NCC 2022), and most states and territories have now implemented those requirements (with a few exceptions and transitional arrangements). This article breaks it all down in plain English so you can make confident decisions—and avoid costly redesigns—before you lodge your plans.
Australia uses the Nationwide House Energy Rating Scheme (NatHERS) to model how much energy your home will need for heating and cooling each year, based on your plans and specification (orientation, glazing, insulation, shading, materials, etc.). The result is a thermal star rating from 0 to 10: the higher the stars, the less energy required to stay comfortable. Since NCC 2022, NatHERS certificates can also include a Whole-of-Home score that estimates total annual energy use from fixed appliances (heating/cooling, hot water, lighting, pool/spa), and credits on-site solar/batteries. (NatHERS)
An energy report (often called a “NatHERS report” or “star rating report”) documents those results and the specification needed to achieve them. Your building surveyor/certifier uses it to check compliance with the NCC or, in NSW, BASIX. (NatHERS)
To move from 6 to 7 stars, plans commonly require smarter passive design and, in many cases, upgrades such as:
These are part of the “first principles” the NCC and NatHERS guidance emphasise for cost-effective 7-star outcomes. (National Construction Code, yourhome.gov.au)
Under NCC 2022, new houses and apartments also need to meet a Whole-of-Home energy budget, assessed in NatHERS software. It sums the expected annual energy use of fixed systems (heating/cooling, hot water, lighting, pool/spa) and then subtracts on-site generation/storage (solar PV + batteries). Think of it as a second test alongside the star rating: the building fabric must be efficient and the major services must be sensibly specified. (NatHERS, National Construction Code)
Because a 7-star shell needs less heating and cooling energy, you spend less to stay comfortable—an advantage that compounds over the life of the home (and only grows as energy prices rise). Government and industry sources consistently peg the heating/cooling savings around 20–25% compared with 6 stars, depending on climate and design. (Sustainability Victoria)
7-star homes hold temperature far better during heatwaves and cold spells, meaning fewer hot/cold rooms, smaller temperature swings, and quieter HVAC because systems can be downsized and run less often. This makes daily life more comfortable and reduces peak-demand stress on the grid. (National Construction Code)
Reaching 7 stars drives good design decisions early—orientation, glazing percentages, shading—that improve liveability and natural light. Buyers increasingly understand (and demand) energy-efficient homes; a compliant 7-star design with a strong Whole-of-Home score is a marketable feature.
The NCC is on a trajectory toward even higher performance over time. Designing for 7 stars now (and considering an all-electric, solar-ready approach) helps future-proof your investment and avoid retrofits later. (NatHERS)
Efficient envelopes reduce drafts, condensation risk, and temperature extremes—factors linked to fewer respiratory issues and mould problems. That translates to healthier indoor environments for families. (National Construction Code)
NCC 2022 took legal effect on 1 May 2023, with each state/territory setting its own adoption and transition timetable. Here’s the snapshot (residential energy efficiency only), current at the time of writing:
Tip: If you’re designing now, plan for 7 stars and Whole-of-Home regardless of location. Even where transitional arrangements still exist, most lenders, buyers and certifiers are expecting the uplift.
A typical report (based on your plans, sections and specification) will include:
From thousands of projects, the winning formula is design-first, specification-second:
NSW runs its own compliance pathway—BASIX—rather than adopting the NCC residential energy provisions directly. As of 1 October 2023, Enhanced BASIX lifted thermal performance and energy targets to broadly align with the national 7-star uplift and Whole-of-Home intent, but compliance is demonstrated through BASIX certificates, not a straight NCC check. Your assessor will model your design using the BASIX engines and generate the certificate for your DA/CC. (National Construction Code)
Is a 7-star home always more expensive to build?
Not necessarily. Many projects reach 7 stars through design optimisation rather than costly materials. Where upgrades are needed (some glazing, extra insulation), the running-cost savings and comfort gains generally pay back over time—and help resale. (National Construction Code)
What’s the Whole-of-Home score “out of 100”?
It’s a separate rating indicating how your fixed appliances and any solar/battery perform together on an annual energy budget; 100 represents net-zero operational energy use over a year (scores above 100 are possible if you generate more than you use). (NatHERS)
Do I still need a report in NSW?
Yes—just via BASIX rather than a standard NCC residential energy check. We’ll advise on the most efficient BASIX pathway for your design. (National Construction Code)
What if my project spans a transition date?
Transition rules vary. To avoid risk, design for 7 stars now and keep your documentation aligned with the current state-based requirements. (National Construction Code)
Whether you’re at concept stage or ready to lodge, our assessors specialise in practical, buildable 7-star solutions that protect your budget and program:
Moving from 6 to 7 stars is more than a number change. It’s a step-change in comfort, resilience and running cost—and in most of Australia, it’s now the minimum for new homes. With early advice and smart design, achieving 7 stars is straightforward and affordable—and the benefits last for decades.
If you’d like us to review your plans and show you the quickest path to a compliant, comfortable 7-star home, get in touch with Floyd Energy and we’ll start with a no-nonsense upfront assessment.
Note: Codes and adoption dates are accurate at the time of publication, but jurisdictions can update their timelines and guidance. We’ll confirm the latest position for your specific project when we prepare your report.
