⚡️ Did you know? A better energy rating could save you $350–$1,500 a year on bills ⚡️🏠 Homes with higher NatHERS ratings sell for up to 10% more 🏠🌿 Australia's average home rating is just 2.9 out of 10 stars — find out yours 🌿⚡️ Did you know? A better energy rating could save you $350–$1,500 a year on bills ⚡️🏠 Homes with higher NatHERS ratings sell for up to 10% more 🏠🌿 Australia's average home rating is just 2.9 out of 10 stars — find out yours 🌿

What is a Home Energy Rating?

Understanding NatHERS ratings and why they matter for Australian homes

TM

Taylor M

NatHERS & Home Energy Specialist

Published 1 January 2025
Updated 6 January 2026
Verified 1 March 2026
5 min read

The Basics

A home energy rating is an assessment of your home's potential energy efficiency on a scale of 0 to 10 stars. In Australia, this is formally known as a NatHERS (Nationwide House Energy Rating Scheme) rating.

What Does It Measure?

A NatHERS rating measures how much energy your home needs for heating and cooling to maintain comfort. The rating considers:

  • Building design and orientation
  • Insulation levels
  • Window types and placement
  • Climate zone
  • Air infiltration and ventilation
  • Building materials and thermal mass

The Star Rating System

The NatHERS scale ranges from 0 to 10 stars:

  • 0-3 stars: Poor energy efficiency, high running costs
  • 4-5 stars: Basic efficiency (minimum requirement for new homes in most states)
  • 6-7 stars: Good energy efficiency, standard for new builds
  • 8-9 stars: Excellent efficiency, significantly lower energy costs
  • 10 stars: Outstanding efficiency, minimal heating and cooling required

Each additional star can reduce heating and cooling energy use by approximately 10-15%.

Why It Matters

A home energy rating is crucial because it:

  • Saves money: Higher rated homes have lower energy bills
  • Increases comfort: Better thermal performance means more consistent indoor temperatures
  • Adds value: Energy-efficient homes are more attractive to buyers
  • Reduces emissions: Less energy use means lower carbon footprint
  • Meets regulations: Required for new builds, major renovations, and property sales

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