Energy Rating is the measurement of a home’s energy efficiency. In order to reduce greenhouse gases, the Federal Government has taken steps to introduce minimum building requirements that limit household energy consumption on heating and cooling. This means that every new building must be assessed / rated to reach this minimum requirement. The more stars a building achieves, the less it costs to cool it down in summer and heat it up in winter.

The Australian Building Codes Board introduced energy efficiency measures for houses into the Building Code of Australia (BCA) on 1 January 2003. It has been adopted by all Australian states and territories which did not already have an equivalent system in place. Victoria and South Australia have gone beyond the standard, and mandated a 5-star rating, instead of 4-stars. During 2006, requirements for 5-star energy ratings were introduced for new homes through the BCA in Western Australia and the Australian Capital Territory.

A 5-Star rating indicates that the house has achieved a high level of thermal energy performance, and will require minimum levels of heating and cooling to be comfortable in winter and summer. Houses which achieve a 5 star rating, compared to the average 2 star home, should be more comfortable to live in, have lower energy bills, and costs to install heating and cooling equipment should also be lower.

Energy Ratings take into account different climatic conditions in different parts of the country and are benchmarked according to average household energy consumption particular to a given climatic region. The house energy rating does not currently include the efficiency of any appliances fitted or used within the house.