For some decades now, there has been a significant shift towards energy-efficient homes in Australia. Many homeowners want to live more sustainably but aren’t sure where to start or how their efforts translate to real-world value.
The Nationwide House Energy Rating Scheme (NatHERS) has long been a trusted name in home energy assessments for new builds and major renovations. With residential buildings accounting for approximately 11% of Australia’s total carbon emissions, improving home energy efficiency is a critical step in meeting national climate targets.
Opteon, in collaboration with the Department of Climate Change, Energy, the Environment and Water (DCCEEW), ING Bank, energy assessors, and the Commonwealth Scientific and Industrial Research Organisation (CSIRO) will commence field testing of the new tools and processes to rate existing homes from 25 February.
Opteon’s advanced workflow systems, geographical footprint and local residential valuation teams will be leveraged to collect the required data within homes. Our energy assessor partners will use the NatHERS tools to measure the energy efficiency of participating homes, providing homeowners with a trial home energy rating certificate.
Once the trial is complete, the official launch of NatHERS ratings for existing homes from mid-2025 will provide practical insights into a home’s energy efficiency, allowing owners to identify areas where small upgrades can boost sustainability and make life more comfortable, save on energy bills, and make informed property decisions whether renovating, selling or refinancing.
“Sustainability isn’t just for new builds—it’s achievable in every home. Through this trial, we’ll be empowering homeowners to make informed decisions toward greener, more comfortable homes, while supporting the broader industry to embed sustainability into the property market. As banks and businesses face growing climate reporting requirements, the NatHERS trial will help the property sector adapt while supporting sustainable lending and investment.“ says Scott O’Dell, Opteon’s General Manager, Growth & Business Excellence.
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Properties with sustainable features not only attract more buyer interest but also command higher prices and sell more quickly. Domain's Sustainability in Property Report 2024 reported energy-efficient houses in regional areas fetching a 20.9% price premium, while units saw a 30.8% premium. Additionally, sustainable homes attract 16.7% greater buyer interest and sell 4% quicker than non-sustainable homes.
For our banking and lending partners, this trial will use existing workflows to support them to achieve their ESG goals and in the future could support mandatory climate reporting.
George Thompson, ING’s Head of Home loans, adds: “Household emissions are one of the biggest contributors 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 initiate the NatHERS trial for existing houses.
We see this trial as a 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 improvement to prioritise to deliver the best energy efficiency and cost outcomes.”
From mid-February select ING customers, applying to refinance or top up their mortgage, will be invited to take part in the trial. An exciting first step toward a greener future.
DISCLAIMER
This article is produced by Opteon Property Group Pty Ltd. It is intended to provide general information in summary form on valuation related topics, current at the time of first publication. The contents do not constitute advice and should not be relied upon as such. Formal advice should be sought in particular matters. Opteon’s valuers are qualified, experienced and certified to provide market value valuations of your property. Opteon does not provide accounting, specialist tax or financial advice.
Liability limited by a scheme approved under Professional Standards
Information sourced from Domain's Sustainability in Property Report 2024 & the National Framework for Disclosure of Residential Energy Efficiency Information.
