New NatHERS rating means you can find out the likely energy bills of an existing home before you move in

It’s been a long time coming but at last, homeowners might soon know how much energy they can expect to consume in their new home. Commercial property owners and tenants have been able to do that for years under the CBD disclosure program.

But now after years of clamouring by residential advocates for a fairer deal for home occupants.

The Nationwide House Energy Rating Scheme (NatHERS), will join with ING to trial the first tranche of homes that will disclose potential energy consumption in existing homes. So far, the rating scheme has been used only for new homes.

Most homes are expected to fall well short of legal minimum

At present, the federal government estimates that 70 per cent of the 11 million homes in the country have an energy rating of just 3 stars or lower, when 7 stars are the nationally mandated minimum.

To illustrate the gap, it would take a huge 40 per cent reduction in energy consumption to raise a 3 star home to 5 stars.

The assessment will be available first to mortgage holders and later to tenants.

“While the trials announced today focus on select households banking with ING, there is an opportunity for other households, including renters, to register their interest to participate in further planned trials,” a Department of Climate Change, Energy, the Environment and Water spokesperson told The Fifth Estate.

The NatHERS trial will be undertaken in two streams:

• Core stream, where energy assessors visit homes to collect data and complete assessments in an end-to-end process for the household. Tenants (and owner occupiers) are welcome to register their interest in participation in the core stream via the CSIRO portal: NatHERS Existing Homes Trial – Core Stream.
• Scale stream, where valuers, working in partnership with banks, collect data and pass it on to energy assessors to generate ratings. The announcement today with ING is part of the scale stream. 

The trial with ING Bank is first, but other banks are expected to follow.

This means mortgage owners looking to top up or refinance their mortgages with ING may be invited to take part in the trial, which would see the trial NatHERS assessment conducted at the same time as the valuation of the property.

The process will take between 30 and 60 minutes and participants will receive a trial certificate of their home’s energy rating as well as guidance on how to improve their rating such as managing energy use and improving thermal performance.

The certificates cannot be used for compliance or regulatory purposes and there are no requirements to disclose these ratings. Once the scheme launches, however, trial participants can see official ratings but at their costs.

The assessment will rate the homes based on design, materials and construction, as well as considering fixed appliances and on site energy generation and storage, a process originally available only for new homes and major renovations.  While NatHERS energy ratings range from 0–10 stars, the 7-star standard has recently been adopted into the National Construction Code as the minimum benchmark for new home builds in most states.

Other partners in the trial include CSIRO and property valuers Herron Todd White and Opteon.

ING’s head of home loans, George Thompson said “We see this trial as a giant leap forward in helping to remove the complexities and confusion that can come with retrofitting your home. With the knowledge gained through this trial customers will have a better indication of what home improvements to prioritise to deliver the best energy efficiency and cost outcomes.” 

“Household emissions are a major contributor to Australia’s carbon footprint.

“At ING we’re committed to reducing carbon emissions and that’s why we’re thrilled to be the first bank in Australia to participate in the NatHERS trial for existing houses.”