7-Star NatHERS Rating Explained: New Energy Standards for Australian Homes from 2023
What Is NatHERS - and Why Is Everyone Talking About It? Picture this - you are about to build your dream home in Australia. Then someone mentions you need a NatHERS rating. You nod along, not entirely sure what that means. That is more common than you think. NatHERS, short for the Nationwide House Energy Rating Scheme, is the official Australian government framework used to measure home energy rating. It assigns a star rating - from 0 to 10 - based on how well a home's design controls temperature naturally. The higher the stars, the less your home leans on heating and cooling systems. From 1 May 2023, a major shift happened. The National Construction Code raised the bar - all new residential builds now require a minimum NatHERS rating of 7 stars. That is a full two-star jump from the old 6-star requirement. Not only that, but the update also introduced a home performance rating for whole-of-home energy use - covering things like hot water systems, lighting, and appliances. Building energy rating homes just got a whole lot more serious.
What Is a NatHERS Certificate? A NatHERS certificate is an official document issued after an accredited assessor runs a thermal performance simulation of your home's design. Think of it as a report card - for your walls, roof, windows, and floor plan.
It confirms that the proposed dwelling meets the required NatHERS stars for council approval and building permits. Without this certificate, a new home build simply cannot proceed past design stage in most Australian states and territories. The certificate captures details like orientation, insulation levels, glazing area, shading, and ventilation. Each factor feeds into software that generates the final NatHERS stars result. This way, every assessment is based on actual design data - not guesswork.
NatHERS Star Rating Guide Star Rating
Thermal Performance Level
Typical Outcome
0 - 2 Stars
Very Poor
Extremely high energy use for comfort
3 - 4 Stars
Below Average
High reliance on heating and cooling
5 - 6 Stars
Moderate (Old Standard)
Acceptable but outdated benchmark
7 Stars
Good (Current Minimum)
Meets 2023 NCC requirement
8 - 9 Stars
High Performance
Low energy bills, strong comfort
10 Stars
Passive Performance
Near-zero artificial temperature control
How Does the NatHERS Rating System Work? The process behind NatHERS Australia is more technical than most people expect. A licensed assessor uses approved software - AccuRate Sustainability or FirstRate5 being the most common - to model your home virtually. That model mimics your local climate data across a full year. It tracks how heat moves in and out of the building hour by hour. The result? A precise measure of how much energy your home would need to stay comfortable. That number translates directly into your NatHERS star rating. Several design decisions directly affect your score. Roof and wall insulation play a large role. So does window size, glazing type, and whether those windows face the right direction. Shading from eaves or external screens also pushes the numbers up. Likewise, cross-ventilation paths help reduce the thermal load during warmer months.
Key Design Factors That Affect Your NatHERS Rating Design Element
Effect on NatHERS Stars
Wall and ceiling insulation (R-value)
High impact - improves thermal resistance
Window orientation (north-facing in AU)
High impact - maximises passive solar gain
Glazing type (double vs single pane)
Medium-high impact - reduces heat transfer
External shading (eaves, screens)
Medium impact - limits summer heat gain
Air sealing and draught control
Medium impact - reduces uncontrolled air leakage
Thermal mass (concrete slab, brick walls)
Medium impact - stabilises indoor temperature
Cross-ventilation design
Medium impact - assists passive cooling
What Changed in 2023 - and Why Does It Matters? The 2022 National Construction Code update - effective from May 2023 - did not just raise the NatHERS minimum from 6 to 7 stars. It also introduced a second layer of assessment: the whole-of-home energy budget. Under this framework, new homes must demonstrate that their annual energy use - from all fixed appliances, hot water systems, pool pumps, and lighting - stays within a set limit. That limit is measured in megajoules per square metre per year. Therefore, a home with great insulation but a gas-only hot water system may still fall short on the whole-of-home check. This change affects designers, builders, and clients alike. Building energy efficiency is no longer just about how well the shell performs. It is about how the entire system works together. That is a meaningful shift in how Australians approach residential construction.
Old vs New: What the 2023 NCC Update Changed? Requirement
Pre-2023 Standard
Post-2023 Standard
Minimum NatHERS Stars
6 Stars
7 Stars
Whole-of-Home Assessment
Not Required
Now Mandatory
Covers Appliances/Hot Water
No
Yes
Energy Budget Limit
Not Applicable
Set in MJ/m²/year
Compliance Pathway
NatHERS only
NatHERS + Energy Budget
Who Needs a NatHERS Certificate? Any new residential build in Australia requires a valid NatHERS certificate before a building permit is granted. This includes detached houses, townhouses, duplexes, and most multi-residential projects under the Class 1 and Class 10 building classifications under the NCC. Significant renovations or extensions that affect the thermal envelope of the home - like adding a room, replacing windows, or re-roofing - may also trigger the need for a fresh assessment. Therefore, it is worth checking with your certifier early in the planning stage. Designers and architects benefit from getting an early-stage assessment done before documentation is finalised. That way, design changes are cheaper and less disruptive. Waiting
until the final drawings are submitted often means costly redesigns if the NatHERS stars come back below the required minimum.
How to Get a NatHERS Certificate in Australia Getting a NatHERS certificate is a structured process. Here is how it generally works, step by step. • • • • • •
Prepare your architectural plans - floor plan, elevations, sections, and window schedule Engage an accredited NatHERS assessor registered with Design Matters National or equivalent body The assessor inputs your design data into approved simulation software A thermal performance simulation is run based on your local climate zone If your design meets 7 stars or above, a NatHERS certificate is issued Submit the certificate with your Development Application or Construction Certificate
Turnaround times vary - but a reliable assessor can often deliver results within one to three business days for standard residential projects. Eco Certificates, for example, is known across NatHERS Australia for combining fast turnaround with a 100% council approval record since 2009.
NatHERS and Building Energy Efficiency: The Bigger Picture Australia's push for better building energy efficiency is not just about lower electricity bills though that is a welcome side effect. The broader goal is reducing the carbon footprint of the residential sector. Homes account for a large share of national energy consumption. A well-rated home stays cooler in summer and warmer in winter - without constant mechanical help. That means less demand on the grid during peak periods. Likewise, it means homeowners spend less on running costs over the life of the building. A 7-star home can use noticeably less energy for heating and cooling compared to a 5-star equivalent. Not only that, but energy rating homes to a higher standard also increases their long-term market value. Buyers are increasingly aware of star ratings when comparing properties. Therefore, meeting - or exceeding - the minimum is both a compliance requirement and a smart investment decision.
Common Questions About NatHERS Ratings Can an existing home get a NatHERS rating? Technically, yes - but the NatHERS scheme is primarily designed for new construction based on design drawings. Existing homes are more commonly assessed using tools like the Residential Efficiency Scorecard. Check with your assessor to find the right pathway.
Does NatHERS cover solar panels? Solar panels do not contribute to the NatHERS thermal star rating. That said, under the new whole-of-home energy budget framework, solar generation can be counted as an offset against the home's annual energy use. That way, a well-designed solar system can help a home meet its overall energy budget.
What if my design does not reach 7 stars?
This is where early assessment pays off. If the initial NatHERS rating falls short, your assessor can identify which design elements are dragging the score down. Adjustments to insulation, glazing, or shading are often enough to push the result over the line - without major structural changes.
Final Thoughts: Building Smarter Starts with the Right Assessment The 7-star NatHERS requirement is not a hurdle - it is a baseline. Australia's climate is diverse and demanding. A home that performs well thermally is simply more liveable, more affordable to run, and better for the environment. Getting your NatHERS certificate right from the start saves time, money, and redesign headaches. Likewise, understanding what drives your home performance rating gives you real power to make smarter design decisions early. That is not just compliance - that is good building practice. For building designers and homeowners looking for qualified assessors with proven experience in NatHERS Australia, Eco Certificates offers accredited assessment services backed by in-house NatHERS assessors, NCC/BCA Section J specialists, and BASIX consultants - all under one roof.
Contact Us
Eco Certificates Website: https://www.ecocertificates.com.au Email ID:
[email protected] Address: Suite G.03, 23 Ryde Road, Pymble NSW, Australia- 2073 Phone Number: +61 1300162436
