Energy Efficiency Requirements for New Builds

Energy-efficient homes are more comfortable to live in, cost less to heat and cool, and help reduce greenhouse gas emissions. If you're building in Victoria, understanding and meeting these requirements isn't just about compliance, it's about creating a home that's healthier, more affordable to run, and better for the environment.

Let's break down the energy standards that matter for your new build.

What are minimum energy performance standards?

Minimum energy performance standards define the baseline level of energy performance that appliances and equipment must meet before they can be sold or used commercially. These aren't arbitrary numbers, they're regularly reviewed to make sure they're effective and beneficial for the community. The Australian and New Zealand governments work together with industry experts and stakeholders to develop these standards, confirming they reflect both technological advances and real-world needs.

What energy efficient standards are required for new builds?

As of May 1, 2024, Victoria introduced updated energy efficiency standards for new homes. The big-picture requirement is straightforward: your whole-of-home annual energy load can't exceed 60 MJ/m²/year.

Here's how you meet that target through three key requirements:

1. Achieve a minimum 7-star thermal performance rating (NatHERS)

The star rating system is simple to understand. The higher the star rating, the more energy efficient your home is. That translates directly to lower running costs and better resilience when extreme weather hits. A 7-star rating is now the minimum standard for new builds in Victoria.

2. Use efficient appliances

Your fixed appliances matter more than you might think. Hot water systems, heating and cooling, and lighting together account for 70-80% of an average home's energy use. That's a massive chunk of your energy budget, which also means massive potential for savings. The 2024 standards require new homes to meet a whole-of-home annual energy use budget. This encourages you to install efficient fixed appliances from the start rather than settling for cheaper, less efficient options that'll cost you more in the long run.

3. Use renewable energy

Rooftop solar is the most common way to offset your remaining energy usage and meet your whole-of-home budget. The good news is you have flexibility here. You can choose between gas or electricity, different technologies, and various efficiency ratings for your fixed appliances, just as long as they collectively meet the annual energy usage budget.

But you don't have to stop there, you can also consider:

• Installing battery storage to maximise your solar investment

• Adding electric vehicle charging stations for future-proofing

• Choosing more efficient plug-in appliances throughout your home

• Selecting at least 4-star WELS rated hot water fixtures like showers and washing machines

If you're building or renovating, you'll need a NatHERS accredited assessor to prepare an energy rating report for your building permit application. They'll help confirm if your design meets the requirements before construction begins.

Getting from 6 to 7 stars

Stuck at a 6-star rating? Don't worry, in most cases, reaching 7 star NatHERS involves relatively simple and low-cost changes, especially if you think about design early in the process.

The key differences between a 6-star and 7-star home typically include:

• Better design and orientation: Taking advantage of the sun's position means passively heating your home in winter while keeping it shaded in summer. It's about working with nature rather than against it.

• Improved insulation: Upgrading your ceiling, wall, or under-floor insulation to suit Victoria's climate makes a significant difference in thermal performance.

• High-performance glazing: Windows are one of the biggest culprits for heat loss in winter and heat gain in summer. Better glazing means better insulation year-round.

During the early rollout of these standards, some builders are still adjusting their standard designs to meet the 7-star energy rating requirements. Sometimes a design modification, like moving the garage or outdoor deck from the northern to the southern side of the house, is all it takes to achieve the minimum rating.

Benefits of increasing energy efficiency in new builds

Meeting these standards isn't just about ticking boxes. The benefits are both real and measurable.

1. Lower energy bills: Research from Energy Victoria shows cost savings from $300 to over $1,000 per year are achievable through energy-efficient homes. That's money back in your pocket every single year.

2. Better health outcomes: Improved indoor comfort protects you and your family from the health risks of chronic cold and extreme weather events like heatwaves. When your home maintains comfortable temperatures naturally, you simply feel better.

3. Lower greenhouse emissions: By building with energy efficiency in mind, you're contributing to Victoria's target of net-zero emissions by 2050. The state aims to reduce greenhouse gas emissions by 45-50% from 2005 levels by 2030. Residential buildings are responsible for 11% of Australia's greenhouse gas emissions, which means they also offer some of the lowest-cost opportunities for reducing emissions across the economy.

4. A greener energy grid: When homes are energy efficient, they reduce demand on the electricity system during peak times. This reduces the need for expensive network infrastructure upgrades that ultimately drive up prices for everyone.

How high-performance windows and doors make a difference

Here's something that surprises many people: windows and doors are among the largest contributors to heat gain and loss in buildings. Therefore, if you're building new or renovating, strategic upgrades in this area deliver measurable, long-term energy savings.

Double or triple glazing

When you invest in double or triple-glazed windows and doors, you're investing in a design built to last 50 years. These products excel in durability, require minimal maintenance, and deliver superior performance year after year. Your investment pays off for decades.

Double and triple glazing reduce thermal transfer between your interior and exterior spaces. They offer significant U-value improvements compared to single-pane windows, which means better insulation. As a bonus, they also provide acoustic benefit, where less outside noise makes it through.

Low-E (Low-Emissivity) Coatings

Low-E coatings are microscopically thin metallic layers applied to the glass surface. They're designed to reflect infrared heat while still allowing visible light through. With this extra layer, heat stays inside during winter and outside during summer. There are different coating types designed to suit different climate needs, so you can optimise for Victoria's specific conditions too.

AliClad Frames

AliClad frames combine the best of both worlds: genuine timber on the inside and durable aluminium exterior cladding on the outside. You get a beautiful solid hardwood interior frame that's specifically designed to reduce heat conduction, as well as a clean aluminium cladding that creates a durable exterior that barely needs painting.

How they work:

• Thermal breaks in the aluminium frames prevent heat conductivity

• The combination delivers the durability of aluminium with the insulating properties of timber

• Weather-tight seals reduce air infiltration

• Low maintenance requirements with superior structural integrity

When you invest in energy-efficient doors and windows, you're investing in a smarter and healthier future. The impact shows up in:

• Quantifiable reduction in your heating and cooling load

• Fewer drafts, cold spots, and temperature fluctuations throughout your home

• Reduced or eliminated condensation problems

AliClad frames make for a brilliant decision, so at the end of the day, it’s ultimately up to you, your preferences, and your budget.

Make your next build energy efficient 

Energy efficiency isn't just a regulatory requirement, it's an investment in comfort, savings, and sustainability. Whether you're planning a new build or a renovation, the right choices today will pay dividends for decades to come.

Ready to explore high-performance windows and doors for your project here in Melbourne? 

Miglas specialises in energy-efficient glazing solutions designed for Australian conditions. Get in touch with our team of experts and see how we can help you meet and exceed Victoria's energy efficiency standards. Contact us today!