Energy Compliance for New Residential Construction
Building a new home in Australia requires compliance with the National Construction Code (NCC), which sets minimum standards for energy efficiency. Since the NCC 2022 update, the minimum NatHERS rating for new homes has increased from 6 stars to 7 stars, and a new whole-of-home energy budget has been introduced covering fixed appliances.
A NatHERS assessment is the primary pathway for demonstrating compliance. An accredited assessor models your home’s thermal performance using approved software and issues a certificate that must be submitted with your building permit application.
What New Build Energy Compliance Involves
For a new residential build, energy compliance involves two main components under NCC 2022:
- Thermal shell performance (NatHERS) — Your home must achieve a minimum 7-star rating based on the performance of the building envelope: walls, roof, floor, windows, and doors. This measures how much energy is needed for heating and cooling.
- Whole-of-home energy budget — A new requirement under NCC 2022 that caps the total energy use of fixed appliances including heating and cooling systems, hot water, lighting, and pool or spa equipment. This encourages efficient appliance selection alongside good building design.
Your accredited assessor will evaluate both components and advise on the most cost-effective approach to compliance.
State-Specific Requirements for New Builds
While the NCC 2022 applies nationally, each state and territory has additional requirements and implementation details:
- New South Wales — New homes must meet both the 7-star NatHERS requirement and obtain a BASIX Certificate, which sets separate energy, water, and thermal comfort targets. Both are required for development approval.
- Victoria — 7-star NatHERS minimum applies. Many Victorian councils also require Environmentally Sustainable Design (ESD) reports as part of the planning permit process, particularly for multi-unit developments.
- Queensland — 7-star minimum with climate-specific considerations. Queensland’s tropical and subtropical zones have different performance challenges compared to southern states, with cooling loads dominating.
- South Australia — 7-star minimum under NCC 2022 with additional focus on summer cooling performance in Adelaide’s hot, dry climate.
- Western Australia — 7-star minimum with transitional provisions. WA’s diverse climate zones from tropical north to temperate south require different design strategies.
- ACT — 7-star minimum for new builds. The ACT also has mandatory energy disclosure requirements for property sales.
- Tasmania and NT — 7-star minimum under NCC 2022, with NT focusing on cooling performance in tropical conditions.
The New Build Assessment Process
When you request a quote through ESD Consultants, we connect you with an accredited assessor experienced with new residential construction. The typical process is:
- Design-stage consultation (recommended) — Engaging the assessor during design allows them to review plans and suggest changes before they are finalised. This is the most cost-effective approach and can avoid expensive redesign later.
- Submit plans and specifications — Provide architectural floor plans, elevations, site plan with orientation, window schedules, and construction specifications.
- Thermal modelling — The assessor models your home in NatHERS-approved software, optimising for your climate zone.
- Whole-of-home energy budget check — The assessor evaluates your specified fixed appliances against the NCC 2022 energy budget.
- Certificate delivery — You receive a NatHERS certificate and energy compliance documentation ready for your building permit application. Typical turnaround is 3–5 business days.
New Build Assessment Costs
The cost of energy compliance assessment for a new build depends on the dwelling type and complexity:
- Standard house (up to 250m²): $400–$600
- Large or custom home (250m²+): $600–$1,000
- Multi-storey home: $800–$1,500
- Apartment (single unit): $300–$500
- Design-stage advice: Often included or $200–$400
Engaging an assessor early typically saves money overall by avoiding redesign costs. For detailed pricing, see our energy rating cost guide.
Tips for Builders and Owner-Builders
Based on feedback from the accredited consultants in our network, these practices lead to smoother compliance and better outcomes:
- Engage an assessor at the concept or preliminary design stage, not after plans are finalised.
- Specify insulation R-values, glazing types, and frame materials in your construction documentation.
- Consider orientation early — north-facing living areas are the single most impactful design decision for energy efficiency.
- Factor in the whole-of-home energy budget when selecting hot water systems, heating, and cooling equipment.
- Use our Energy Rating Calculator for a preliminary estimate before committing to a design.
Frequently Asked Questions
What energy rating do I need for a new home?
Under the National Construction Code 2022, all new residential buildings in Australia must achieve a minimum 7-star NatHERS rating. Some states or local councils may have additional or higher requirements. Your accredited assessor will confirm the specific requirements for your location.
When should I get my new build assessed?
The best time to engage an accredited assessor is during the design phase, before plans are finalised. This allows the assessor to recommend cost-effective changes that can improve the star rating without requiring expensive redesign. The formal assessment is then completed on the final plans before building permit application.
What is the whole-of-home energy budget?
The NCC 2022 introduced a whole-of-home energy budget that goes beyond the NatHERS thermal shell rating. It sets limits on the total energy consumption of fixed appliances including hot water systems, pool and spa pumps, lighting, and space conditioning. This means your choice of hot water system and other fixed appliances affects compliance.
Do volume builders include energy rating in their price?
Most volume builders include the NatHERS assessment cost in their standard inclusions. However, the assessment is still performed by an independent accredited assessor. If your design modifications change the thermal performance, a reassessment may be needed at additional cost.
What if my new home design doesn't reach 7 stars?
If your initial assessment falls short, the assessor will recommend specific changes to achieve compliance. Common adjustments include upgrading insulation, improving glazing, adding shading, or adjusting window sizes. Most designs can reach 7 stars with minor modifications when an assessor is involved early in the process.