3 minute read
New energy efficiency standards for rentals
From April 1st 2023, ACT rental properties will be required to comply with a new minimum energy efficiency standard for ceiling insulation. Here’s what landlords and tenants need to know about the new rules.
Photography by Scott Graham
The ACT Government’s new energy efficiency standard will require rental properties with no insulation or existing ceiling insulation below an R-value of R2 to install or upgrade their insulation to a minimum R-value of R5.
At least 60% of Canberra’s homes are currently compliant with the new rules, leaving the remaining 40% until 30 November 2026 to be compliant, unless they are exempt.
From April 1st 2023, rental properties will be required to be compliant with the new standard within nine months of a new tenancy agreement being signed. From this date, landlords and rental agencies must also disclose in advertising and when entering into a tenancy agreement whether the rental property is compliant with the new regulation or has an exemption.
From December 1st 2026, all properties entering the rental market must meet the new standard within three months of signing a new tenancy agreement.
Photography byPatrick Thomass
Property owners must provide evidence of compliance in various forms. This includes a receipt for the installation work confirming that it meets the minimum standard, as well as an inspection report by a certified insulation installer, an Energy Efficiency Report by a registered building assessor, and a statutory declaration confirming the new insulation has been completed and is compliant. If the property was built after 1997 (when R3 became the standard in new homes), then a landlord will need a statutory declaration confirming that the existing insulation has not been disturbed.
Penalties may apply to landlords and rental agencies if these requirements are not met.
Insufficient insulation can allow up to 35% heat loss through the ceiling during winter as well as hot air to enter your home during summer (or cool, air conditioned air to escape). The higher the R-value, the better the ceiling insulation, which means an improvement to thermal comfort, a reduction in energy bills and greenhouse gas emissions, and an improvement to the property’s value, so the new standard will benefit both landlords and renters.
The new regulation is the result of the ACT Government’s pledge to increase the energy efficiency of rental properties across the territory and build a climate resilient city that can better withstand the impacts of climate change.
Photography by Brett Jordan
KEY DATES
From April 1st 2023
The minimum energy efficiency standard comes into effect. Where a new lease is signed, the rental property will have nine months to be compliant. All rental advertising and new leases must disclose whether the property meets the standard,
By November 30th 2026
Properties will need to comply with the new standard, unless exempt.
From December 1st 2026
All rental properties entering the market on or after this date must comply within three months of signing a new tenancy agreement.
