Home Energy Ratings

Published 15 July 20265 min read

What does a NatHERS energy rating measure?

Modern Australian home split in half, with one side showing exterior and the other showing energy-efficiency features.

Published 15 July 2026

The Nationwide House Energy Rating Scheme (NatHERS) measures the thermal performance of a home's design, not its total energy use.

The Star Rating runs from 0 to 10 and reflects how well a home's design and construction are expected to maintain a comfortable temperature in its local climate. Since 2022, the National Construction Code has set a minimum of 7 stars for new homes in most jurisdictions, up from 6. A separate Whole of Home rating, on a scale of 0 to 100+, covers the home's broader modelled energy use, including heating and cooling, appliances, hot water, lighting, solar and battery storage.

That split matters: residential buildings account for around 24% of Australia's electricity use and more than 10% of its carbon emissions. A single star number is often mistaken for a stand-in for a home's entire energy performance, but the Star Rating covers only the building shell. A separate, differently scaled Whole of Home rating covers the home's broader modelled energy use.

Star Rating scale
0–10
Thermal performance of the building shell only
Whole of Home scale
0–100+
Broader modelled household energy use, higher is better
Minimum Star Rating, NCC 2022
7 / 10
Up from a 6-star minimum before the update
NatHERS climate zones
69
Each with its own star-band thresholds
New home energy efficiency rules in Australia in 2026New home energy efficiency rules in Australia in 2026Most new houses and townhouses approved in jurisdictions that have adopted NCC 2022 must now meet a 7-star NatHERS-equivalent thermal standard, up from the 6-star minimum that applied for more than a…Why Australia's 7-star energy standard has divided the building industryWhy Australia's 7-star energy standard has divided the building industryAustralia's National Construction Code lifted the minimum energy rating for new houses from six stars to seven under NCC 2022, the first increase in more than a decade. States and territories then rol…

Section 01 · The core distinction

What is the NatHERS rating system?

NatHERS, the Nationwide House Energy Rating Scheme, has operated for more than three decades, rating the energy performance of Australian homes since 1993. It produces two distinct measures rather than one combined score: a Star Rating for thermal performance and a Whole of Home rating for broader modelled household energy use. For new homes, the certificate is assessed from design plans before construction. For existing homes, the certificate records the home's current, as-built energy efficiency.

The Star Rating, on a scale of 0 to 10, reflects the thermal performance of the design itself: how well the layout, materials, insulation, windows, orientation and shading are expected to keep the home comfortable in its local climate. The Whole of Home rating, on a scale of 0 to 100+, estimates the home's total modelled energy use, including heating and cooling, hot water, lighting, fixed appliances, and any onsite solar or battery storage. A home can score well on one measure and poorly on the other. The two ratings measure different parts of home energy performance and cannot be used interchangeably.

Star Rating

Scale

0–10

Measures

Thermal shell

Excludes

Appliances, hot water, solar, batteries

Whole of Home

Scale

0–100+

Measures

Broader modelled household energy use

Includes

Fixed appliances, hot water, lighting, solar and batteries

Source · homeenergyrating.gov.au, understanding your new home's certificate.

How have NatHERS minimum ratings changed?

The minimum Star Rating for new homes has risen from 6 to 7 since 2022, the second increase in fifteen years. The 0 to 10 scale itself has not changed since it was expanded in 2006, but the average outcome has moved with each tightening of the minimum.

  1. 1993

    Scheme begins

    NatHERS starts providing ratings for new homes.

  2. 2003

    National adoption

    Energy-efficiency requirements adopted in all states and territories.

  3. 2006

    10-star scale introduced

    Star bands expanded to the current 0–10 scale and to 69 climate zones.

  4. 2010/11

    6-star minimum

    Minimum rating for new homes raised to 6 stars (or the BASIX equivalent in NSW).

  5. 2019

    Average rating: 6.2 stars

    CSIRO records the average newly built home at 6.2 stars, more than triple the 1.8-star average estimated at the scheme's 2003 baseline.

  6. May 2024

    7-star minimum becomes mandatory in Victoria

    Updated NCC 2022 energy-efficiency standards become mandatory in Victoria, moving applicable new homes from 6 to 7 stars.

  7. Dec 2025

    Certificate use reaches 96.5 per 100 permits

    CSIRO reports 96.5 NatHERS certificates for every 100 ABS building permit records in 2025, up from around 80 per 100 in 2018. This is a certificate-use indicator, not a direct compliance or inspection pass rate.

Source · Home Energy Rating, Understanding your new homes certificate; Home Energy Rating, National Construction Code 2022; Victorian Government, 7 star energy efficiency building standards, May 2024; CSIRO Australian Housing Data, NatHERS tools update, December 2025; energy.gov.au, Update to the Trajectory for Low Energy Buildings, August 2025; DCCEEW, Residential buildings, updated February 2026.

NatHERS certificate numbers compared to building approvals in AustraliaCertificates issued per 100 building permits, 2018 to 2025.CSIRO Australian Housing Data, NatHERS tools update, December 2025204060801008096.520182025YearCertificates per 100 building permits

How do older homes compare with new NatHERS standards?

Homes built before 2003 average below 3 stars out of a possible 10, less than half the 6.2-star average recorded for new homes in 2019. Australia has about 11 million existing residential buildings, and most predate current energy-efficiency standards by a wide margin, leaving the 7-star minimum required today well out of reach for most of the existing stock.

Existing residential buildings
About 11 million
Most built before current standards applied
Average rating, pre-2003 homes
Below 3 stars
Out of a possible 10
Household Energy Upgrades Fund
$1.3 billion
Allocated in the 2023–24 Federal Budget
Homes targeted by the fund
110,000+
For energy-efficiency upgrades to existing homes

energy.gov.au, update to the Trajectory for Low Energy Buildings (August 2025), and DCCEEW, residential buildings. The fund targets upgrades to existing homes, separate from new-build compliance standards.

Section 02 · The method

How a NatHERS star rating is calculated

Every NatHERS assessment simulates a full year of hourly weather data, 8,760 hours in total, using the CSIRO-developed Chenath engine to calculate the energy needed to keep each part of a home within a fixed comfort range. Four accredited software tools currently perform this simulation, all built on the same underlying engine so results are comparable with each other.

Building data entered

Room dimensions, materials, windows, construction type, orientation and location are entered from design plans, or measured for an existing home.

Climate file applied

The software applies the Reference Meteorological Year weather file for the home's specific climate zone, using a full year of hourly climate data.

Standard occupancy applied

Fixed occupancy hours and thermostat settings are applied so every home is modelled under the same assumptions, rather than the behaviour of its actual occupants.

Passive measures modelled first

The model applies natural ventilation, shading and mechanical air movement before mechanical heating or cooling is triggered.

Heating and cooling loads calculated

Hour-by-hour energy demand is calculated in megajoules per square metre of conditioned floor area, not raw annual energy use.

Area correction factor applied

Loads are adjusted for dwelling size, so homes of different footprints can be compared on a more consistent basis.

Star Rating assigned

The adjusted load is compared against that climate zone's own star-band thresholds and assigned in half-star increments.

Whole of Home rating calculated

A separate calculation adds heating and cooling, fixed appliances, hot water, lighting, solar generation and battery storage to produce the 0–100+ score.

Certificate issued

An accredited assessor issues the certificate with the scheme logo, colour formatting and a QR code linking to the secure online record.

What temperature settings are used in NatHERS assessments?

NatHERS assessments use standard thermostat and occupancy settings so homes can be compared on the same basis. Living spaces are modelled with a 20°C minimum heating setting during occupied hours. Sleeping spaces use a 18°C minimum heating setting from 7am to 9am and from 4pm to midnight, then 15°C from midnight to 7am.

Cooling settings are not a single national number. They vary by climate zone and room type to reflect local acclimatisation, air movement, air temperature and humidity.

Standardised heating thermostat settings used in NatHERS assessments in AustraliaMinimum heating set-point by time of day.Living spacesSleeping spacesNatHERS, internal heat loads, current guidance15161718192012am2am4am6am8am10am12pm2pm4pm6pm8pm10pmHour
Living spaces are modelled as occupied from 7am to midnight; sleeping spaces from 4pm to 9am. Gaps in each line mark hours the space is not modelled as occupied, so no setting applies

Cooling settings vary by climate zone and room type to account for local acclimatisation, air movement, air temperature and humidity. The standardisation behind these figures is deliberate: because every home is assessed against the same occupancy and comfort assumptions, two homes can be compared fairly regardless of how their actual occupants behave.

Current NCC 2022 accredited software tools use Chenath versions 3.22, 3.23 or 3.24, depending on the software tool. Source: homeenergyrating.gov.au, Software Accreditation Protocol for new homes ratings NCC 2025, Version 20241122, and Home Energy Rating software updates page.

Section 03 · The design inputs

What affects a home's NatHERS score?

A home's NatHERS Star Rating is affected by climate zone, orientation, insulation, shading, window type, building materials, air leakage, floor area and ceiling fans. Together, these inputs affect how much heating and cooling the home is modelled to need. Appliances, hot water systems, lighting, solar panels and batteries are assessed separately through the Whole of Home rating.

Orientation

The home's orientation affects how much sun reaches living areas, windows and shaded spaces at different times of year.

Insulation

Entered separately for roof, ceiling, walls and floor. Higher values reduce heat transfer through the shell.

Windows and glazing

Frame type, glass type, solar heat gain coefficient and U-value are entered for each opening. Window performance affects both heating and cooling loads.

Shading

Modelled as operable, closing when solar irradiance on the glazing exceeds 75 W/m². Shading can reduce cooling loads in hot conditions, but it can also affect winter heat gain.

Building materials

Construction type and thermal mass are entered per element. CSIRO data from 2019 put the average new home at a metal roof, brick veneer walls and a concrete floor.

Airtightness

Air leakage is measured or estimated in existing-home assessments and forms part of the thermal model. Australian housing has been identified in research as having relatively poor airtightness compared with many international benchmarks.

Floor area

Used to calculate energy loads per square metre, then adjusted by the area correction factor described below.

Ceiling fans

Ceiling fans can affect the thermal model because they influence comfort conditions before mechanical cooling is triggered. Other fixed appliances are assessed through the Whole of Home calculation.

Section 04 · Climate calibration

How do NatHERS climate zones affect home energy ratings?

NatHERS divides Australia into 69 climate zones, each with its own Reference Meteorological Year weather file and star-band thresholds. The zones are generally aligned with postcode boundaries, but alternative zones can apply where local features, such as elevation or topography, create meaningfully different climate conditions within the same postcode.

This means a home in Darwin and a home in Hobart is not assessed against the same thermal-performance benchmark. A rating is calibrated to the local climate zone, not just the building design.

Darwin

Zone 1 · NT

Hot humid tropical

Cairns

Zone 32 · QLD

Hot humid tropical

Brisbane

Zone 10 · QLD

Warm humid subtropical

Perth

Zone 13 · WA

Hot dry Mediterranean

Sydney CBD

Zone 17 · NSW

Temperate coastal

Adelaide

Zone 16 · SA

Mediterranean

Canberra

Zone 24 · ACT

Cool temperate inland

Melbourne

Zone 21 · VIC

Cool temperate

Hobart

Zone 26 · TAS

Cool temperate

Why the same NatHERS rating can mean different energy loads

A 7-star home does not have one national energy-load allowance. NatHERS star bands are calibrated separately for each climate zone, so the amount of modelled heating and cooling energy allowed at the same star level can differ by location.

The key comparison is not whether one city is colder or warmer overall. The key point is that each climate zone has its own weather file and star-band thresholds. As a result, the same design can achieve a different Star Rating if it is assessed in a different climate zone.

Why NatHERS load limits vary by climate zone

Under the NCC 2022 NatHERS pathway, heating and cooling load limits are set separately by climate zone, building class and floor type. The ABCB load-limit tables list separate heating and cooling values in MJ/m² per year, rather than one combined cap for each city.

Because of that, city-to-city comparisons should be treated as examples of climate-zone calibration, not as a single national allowance.

Source: homeenergyrating.gov.au, ABCB 2022 Heating and Cooling Load Limits, NCC 2022.

How the 2022 NatHERS climate-file update changed ratings

The 2022 update replaced the climate data used in NatHERS modelling, moving from the earlier 1970 to 2005 observation period to climate files based on 1990 to 2015 data. That means two assessments of the same design, one run under older settings and one run under NCC 2022 settings, can return different results because the underlying weather data has changed.

Source: NatHERS 2022 star-band update and NSW Planning BASIX guidance.

How NatHERS updated the 2022 star bands

Producing new star bands across all climate zones required NatHERS to test a sample of 18 dwelling designs across all 69 climate zones at multiple star levels. The analysis was used to recalibrate the star bands for the updated climate files.

The updated star-band work is a technical calibration process. It should not be described as a direct measure of real-world home performance after construction.

Source: NatHERS 2022 star-band analysis and TIC final report on the 2022 star-band update.

Section 05 · Compliance

What is the difference between a NatHERS rating and NCC compliance?

A NatHERS Star Rating is one part of National Construction Code compliance, not the full compliance test on its own. Under the NatHERS pathway in NCC 2022, a new home may need to satisfy three separate energy-efficiency checks, depending on the building type, jurisdiction and compliance pathway.

The first check is the thermal Star Rating: New houses generally need a minimum 7-star NatHERS rating in jurisdictions that have adopted the NCC 2022 residential energy-efficiency provisions. For apartments, the building generally needs to average 7 stars across all sole-occupancy units, with no individual apartment below 6 stars.

The second check is the Whole of Home rating: Under the NCC 2022 default settings, new houses generally need a Whole of Home score of 60 out of 100, while new apartments generally need 50 out of 100. This rating covers broader modelled household energy use, including heating and cooling, hot water, lighting, fixed appliances, solar and batteries.

The third check is the heating and cooling load limit: These limits are set in megajoules per square metre per year and apply separately to heating and cooling loads. They sit alongside the Star Rating and are intended to prevent a design from passing on total thermal performance while performing poorly in either heating or cooling.

Thermal Star Rating

Minimum thermal-shell performance, assessed against local NatHERS climate-zone thresholds.

Whole of Home rating

Broader modelled household energy use across heating and cooling, hot water, lighting, fixed appliances, solar and batteries.

Heating and cooling load limits

Separate caps on modelled heating and cooling loads, measured in MJ/m² per year.

NCC 2022 compliance pathway

Subject to building type, compliance pathway and state or territory variations. New South Wales uses BASIX-aligned residential sustainability standards, while NCC energy-efficiency requirements can still apply where relevant.

Thresholds apply differently across states and territories because each jurisdiction adopts and applies the National Construction Code through its own building system.
MeasureThreshold or scaleWhat it coversWhat it doesn't cover on its own
Star Rating0–10, half-star incrementsThermal performance of the building shell in its local climate zoneTotal home energy use; appliances, solar, hot water and lighting are excluded
Whole of Home rating0–100+, higher is betterOverall modelled energy use: heating and cooling, hot water, lighting, appliances, solar and batteriesNot the same as the thermal Star Rating; a separate scale and purpose
NCC 2022 minimum, Star Rating7/10 (houses and apartments)Minimum thermal performance threshold; no individual apartment below 6 starsNot the only threshold; the Whole of Home minimum also applies
NCC 2022 minimum, Whole of Home (houses)60/100Minimum overall energy-use budget for new housesNot a substitute for the thermal Star Rating; both must be met
NCC 2022 minimum, Whole of Home (apartments)50/100Minimum overall energy-use budget for new apartmentsLower minimum than houses, but the 7-star thermal minimum still applies
Heating and cooling load limitsSet per climate zone, MJ/m² a yearA cap on separate heating and cooling energy demandsNot a standalone requirement; applies on top of the Star Rating
New-home NatHERS certificateIssued from design plans before constructionDemonstrates NCC compliance for the building permitCannot verify as-built performance after construction changes
Existing-home NatHERS certificateIssued from an as-built assessmentRecords the property's current energy efficiencyCannot be used to demonstrate NCC compliance
NSW BASIXSeparate NSW residential sustainability systemSets water, energy and thermal comfort standards for NSW residential developmentNCC energy-efficiency requirements can still apply in NSW in addition to BASIX

Source · homeenergyrating.gov.au, National Construction Code 2022, Whole of Home guidance, new-home certificate guidance, and NSW Planning BASIX guidance.

Section 06 · NatHERS certificates and energy ratings

How NatHERS certificates show a home's energy rating

A NatHERS certificate records the rating type, assessor details and official certificate format. A new-home NatHERS certificate is issued from design plans before construction and can form part of the building approval documentation. An existing-home certificate records the energy performance of a home that has already been built.

The official accredited assessor directory lists more than 43 existing-home assessors across Australia. Past new-home ratings can also be searched through CSIRO's Energy Rating Finder, but that search tool does not currently include existing-home ratings.

Official certificate features include:

Scheme logo and colour formatting

NatHERS-accredited assessors issue certificates with the NatHERS logo and colour formatting.

QR code linked to an online record

The certificate includes a QR code that links to a secure online record of the assessment.

Certificate type

A new-home certificate records a design-stage assessment. An existing-home certificate records the energy performance of a home that has already been built.

Non-accredited certificate format

A certificate without the NatHERS logo and available only in black and white indicates it was produced by a non-accredited assessor. Non-accredited certificates do not carry the same NatHERS accreditation status.

Section 07 · Setting the record straight

What does a NatHERS rating not measure?

Several common misunderstandings about NatHERS come from treating the Star Rating as a complete measure of a home's energy performance.

The Star Rating measures the thermal performance of the building shell.

The separate Whole of Home rating measures broader modelled household energy use, including heating and cooling, hot water, lighting, fixed appliances, solar generation and battery storage.

MythWhat the data actually shows
A NatHERS rating is a complete whole-home energy score.The Star Rating covers only the thermal shell. Whole of Home, a separate 0–100+ scale, covers heating and cooling, hot water, lighting, appliances, solar and batteries.
Solar panels improve the Star Rating.Solar and battery storage sit in the Whole of Home calculation only. Two identical designs, one with solar and one without, receive the same Star Rating.
NatHERS predicts an exact power bill.The model uses standardised occupancy and thermostat assumptions, not household-specific behaviour or tariffs. Official sources do not publish bill outcomes by star level.
A 7-star rating means the same design everywhere.Star bands are set separately for each of the 69 climate zones. The same design can rate differently depending on where it is assessed.
Any NatHERS certificate proves NCC compliance.Only a new-home certificate can be used to demonstrate compliance. An existing-home certificate cannot, regardless of the star result it shows.
NatHERS rates how occupants use their home.The assessment covers the building, its fixed appliances and any onsite renewables, not occupant behaviour. Standardised assumptions apply to every home alike.

Source · nathers.gov.au and homeenergyrating.gov.au, official certificate and new-homes guidance.

References

  1. Measuring the energy efficiency of new homes, homeenergyrating.gov.au, current guidance · homeenergyrating.gov.au
  2. Understanding your new homes certificate, homeenergyrating.gov.au, current guidance · homeenergyrating.gov.au
  3. Understanding your certificate, existing homes, homeenergyrating.gov.au, current guidance · homeenergyrating.gov.au
  4. National Construction Code (NCC) 2022, homeenergyrating.gov.au, NCC 2022 guidance · homeenergyrating.gov.au
  5. Software rules and modelling inputs, homeenergyrating.gov.au, current guidance · homeenergyrating.gov.au
  6. Internal heat loads, NatHERS, current guidance · nathers.gov.au
  7. Software Accreditation Protocol for new homes ratings NCC 2025, homeenergyrating.gov.au, Version 20241122 · homeenergyrating.gov.au
  8. Climate Zone Map, homeenergyrating.gov.au, current guidance · homeenergyrating.gov.au
  9. NatHERS Climate Zone Postcodes, homeenergyrating.gov.au, September 2025 · homeenergyrating.gov.au
  10. NatHERS 2019 Update final report, NatHERS, 2019 climate files update · nathers.gov.au
  11. NatHERS 2022 Starbands, NatHERS, NCC 2022 star-band update · nathers.gov.au
  12. TIC final report, impact of climate files on NatHERS 2022 star bands, NatHERS, May 2023 · nathers.gov.au
  13. Find an accredited assessor, homeenergyrating.gov.au, current directory · homeenergyrating.gov.au
  14. DCCEEW – Residential buildings, updated February 2026 · dcceew.gov.au
  15. Update to the Trajectory for Low Energy Buildings, energy.gov.au, August 2025 · energy.gov.au
  16. Home Energy Ratings Disclosure Framework, Version 2, energy.gov.au, December 2024 · energy.gov.au
  17. Australian Housing Data portal, CSIRO, data from May 2016 · ahd.csiro.au
  18. NatHERS tools update, CSIRO Australian Housing Data, December 2025 · ahd.csiro.au
  19. ABCB 2022 Heating and Cooling Load Limits, homeenergyrating.gov.au, NCC 2022 · homeenergyrating.gov.au