7 Star Rated Homes Are Coming: Are You Ready?

7-STAR RATED HOMES ARE COMING: ARE YOU READY?

After more than a decade, Australian building standards will be significantly updated with the review of the National Construction Code. The proposal to increase the minimum energy-efficiency rating of newly built homes from 6 to 7 stars is stirring debate as the industry considers how the change will affect it.

According to the Climate Council’s 2022 Tents to Castles Report 1 , a 7-star standard for all new homes would save households an average of $450 a year and also reduce residential carbon emissions by 12% (compared to emissions in 2019). However, for businesses to adapt to the change, inevitably there will be challenges they’ll need to overcome, such as increased costs to deliver new homes.

Consultation for the proposed legislation has closed. Deliberation by the building ministers is ongoing at the moment but by the time this goes to print, we expect a decision by the end of the year. 7-star has been adopted nationally in the NCC, subject to state and territory transition arrangements. However, the Housing Industry Association (HIA) is resisting changes, stating that the ‘costs … would exceed the benefits’ 2 .

In this article, we talk to Stuart Khan, Regional Manager – Southern Region at Architectural Window Systems (AWS), about the benefits of 7-star rated homes, the challenges the change presents and how Victoria is already leading the way when it comes to energy-efficient homes. He also shares why now is the time to get prepared.

MAKING HOMES MORE COMFORTABLE

When the rating lifts to 7-stars, it will not only improve energy efficiencies and reduce carbon emissions across the country, but also make people’s lives more comfortable. Homes with 7-star ratings have design features that help to improve the health and comfort of those living there. For example, double-glazed and thermally broken aluminium windows and doors work to keep the home cool in summer and warm in winter.

Stuart explains, ‘This means you don’t need to constantly run cooling and heating systems. If you have the heater going all the time, you’re always trying to fight against nature. In a more energy-efficient home, you don’t have to do that. You can make your home more comfortable without much effort.

‘That’s the feedback we get at AWS—that the design features of 7-star homes make people’s lives more comfortable.’

ENERGY EFFICIENT MOVES IN VICTORIA

In late 2021, in anticipation of the proposed changes to the National Construction Code, Sustainability Victoria rolled out its $2.19 million 7-Star Homes program. Its aim is to support the building and construction sector to deliver residential properties that go beyond the Government’s current 6-star requirements.

Stuart says most fabricators he works with in southern states, like Victoria 3 , are already doing double-glazed windows and doors. ‘It would be close to 100% double-glazed for a lot of our clients, whereas in other states it may be less, but our prediction would be that this is only going to increase.’

Victoria’s climate means its buildings are already engineered towards heating, which is why thermally-efficient windows and doors are more common. ‘The more energy efficient windows and doors that are used, the better chance we’ve got at keeping the heat inside homes,’ Stuart comments.

‘So, when the standard goes from 6 to 7-stars, Victoria will already be leading the way when it comes to building energy efficient homes.’

THE COST OF 7-STARS

While making homes more energy-efficient is a positive thing, it does come at a cost.

‘From a fabricator’s point of view, it means heavier products,’ Stuart says. ‘So, as an industry, fabricators need to start thinking about how to handle these heavier products in the factory, during deliveries and during installation in the home.’

The answer isn’t in smaller windows and doors either, he notes, as, increasingly, people want light-filled spaces to create a more comfortable living environment.

‘The lesson we’ve learned in the southern states, where double-glazed windows and doors are more common, is that there are handling issues inside our factories and on site. That’s an issue that’s going to be faced in other states as the requirements increase.’

However, fabricators in Victoria have shown us that the best way to handle these changes is to get prepared early, rather than waiting until the legislation comes in.

For those needing support to plan, AWS’s ‘FuturePROOF’ business development program can help. The program was designed to support fabricators, by working with them, to develop a five-year plan, establish good systems and processes, and put business KPIs in place—helping them to always stay one step ahead.

IT’S NOT A MATTER OF IF BUT WHEN

Stuart comments that with the new Federal Labor Government and soaring energy costs, going to 7-stars is something that will inevitably happen. A lot of new conversations have already started, and they’ll become more prevalent.

Currently, it is mandatory in the ACT to disclose a home’s star rating when selling 4 and this is something that could be rolled out across the rest of the country eventually.

‘We need to be prepared for it,’ Stuart says. ‘Going forward, energy-efficient homes are going to become more attractive when houses go up for sale and to rent. I think we’re going to see more people asking whether it’s an energy-efficient home before they choose to live there.’

Stuart encourages fabricators to contact their system suppliers to check whether they’re prepared for the move to 7-star rated homes. ‘It’s important to ask them, “will you have the products to satisfy the changing market?” It won’t be going the other way; the changes are coming at some point. When the legislation comes in, it’s too late to try to do something. You need to be prepared now.’

Stuart adds that AWS is ready to help. ‘We have products like ComfortEDGE TM and ThermalHEART TM to help businesses compete in a more energy-efficient marketplace, so that when the 7-star requirement comes in, they’ll be ready.’

For more information email marketing@ awsaustralia.com.au or visit www. awsaustralia.com.au

1. Climate Council’s 2022 Tents to Castles Report, https://www.climatecouncil.org. au/resources/tents-castles-buildingenergy-efficient-cost-saving-aussiehomes/

2. A Sadauskas, Are you sick of the ongoing debate about 7 star homes? Here is the way forward, The Fifth Estate, 22 April 2022, https://thefifthestate.com.au/ business/government/are-you-sick-ofthe-ongoing-debate-about-7-star-homeshere-is-the-way-forward/

3. Sustainability Victoria, 7 Star Homes Program: Guidelines, https://www. sustainability.vic.gov.au/energyefficiency-and-reducing-emissions/ building-or-renovating/7-star-homesprogram/7-star-homes-programguidelines

4. Australian Capital Territory, Everyday Climate Choices, https://www. climatechoices.act.gov.au/energy/ energy-efficiency