Understanding 7-Star Energy Ratings: What It Means for Your New Home

Building a new home in Australia comes with exciting decisions about design and location. But there's one requirement that affects every new build across the country: the 7-star energy rating for homes in Australia. If you're planning to build, understanding what this rating means can help you make informed choices about your home's comfort and running costs.

What is a 7-star energy rating for new homes?

Energy ratings measure how well your home maintains a comfortable temperature without relying heavily on heating and cooling systems. In Australia, the Nationwide House Energy Rating Scheme (NatHERS) assesses the thermal performance of residential buildings on a scale of 0 to 10 stars.

The higher the star rating, the less energy your home needs to stay comfortable year-round. Australian states are progressively adopting a minimum 7-star NatHERS rating requirement, up from the previous 6-star standard. Victoria implemented the 7-star requirement in May 2024, and Western Australia followed in May 2025. For homeowners, that means lower energy bills and less energy waste.

At Home Group, we build to 7-star standards and beyond. When you build with us, you're getting a home that's ahead of the standard from day one.

Why the change to 7 stars?

The move to 7-star energy ratings is part of Australia's push to cut household energy use. With rising electricity costs and growing awareness of climate impact, energy-efficient homes went from optional to mandatory.

For you as a homeowner, this means lower running costs from day one and a home that's naturally more comfortable in both summer and winter.

How energy ratings affect your home design

You don't need expensive tech to hit 7 stars. Most of it comes down to smart design choices that work together to create a thermally efficient home.

Insulation and building materials

Good insulation in your walls, roof, and floors is the starting point. Modern building materials with high thermal resistance help maintain stable indoor temperatures. That means less reliance on artificial heating and cooling.

At Home Group, our homes come with comprehensive insulation as standard, including ceiling and wall insulation that exceeds basic requirements. We use materials specifically chosen for Australian climate conditions, whether you're building in Perth's hot summers or Melbourne's cooler winters.

Window placement and glazing

The size, position, and quality of your windows significantly impact energy performance. Strategic window placement captures natural light but limits heat gain in summer and heat loss in winter. Double glazing and quality window treatments add another layer of thermal protection.

Our design team carefully considers window orientation in every home design, so living spaces get natural light without excess heat gain.

Home orientation and layout

The direction your home faces affects how much sun it receives throughout the day. Smart orientation means positioning living areas to capture winter sun while providing shade in summer. Open-plan layouts also help air circulate naturally, which reduces your reliance on air conditioning.

Whether you choose a single storey or two-storey home design, our award-winning designs incorporate orientation principles that maximise comfort and efficiency.

Vermont Platinum

Single Storey

4

2

2

16m

Falcon Estate

Explore this Display

Ventilation and air sealing

Proper ventilation lets fresh air circulate without letting in draughts. Quality construction with attention to air sealing around doors, windows, and joints means your home holds its temperature without extra effort.

The long-term savings: what 7 stars means for your budget

An energy-efficient home saves you money too. The difference between a 6-star and 7-star rated home can translate to hundreds of dollars in annual energy savings.

Lower heating and cooling costs

Homes with 7-star energy ratings require less mechanical heating and cooling to maintain comfortable temperatures:

• Lower electricity bills year-round
• Less need for air conditioning in summer
• Lower heating costs in winter
• More stable indoor temperatures

Over the lifespan of your home, these savings add up. Homeowners with 7-star rated homes typically find their heating and cooling costs are noticeably lower compared to older, less efficient homes.

Increased property value

Energy efficiency is increasingly important to buyers. A home that meets or exceeds current energy standards can offer better value to future buyers, thanks to lower ongoing costs. That also helps when it's time to sell or lease.

Future-proofing your investment

Building standards continue to evolve towards greater efficiency. Building to 7-star standards now means your home meets current requirements and can handle any future changes to building regulations.

Cambridge Platinum

Single Storey

4

2

2

17m

Glen Iris Estate

Explore this Display

Understanding whole of home energy ratings

The new energy requirements have two components: the traditional thermal shell rating (the 7-star rating we've been discussing) and a new Whole of Home energy budget introduced in the NCC 2022.

The thermal shell rating measures how well your home's structure (walls, roof, windows, and floors) keeps heat in during winter and out during summer. This is the familiar 0-10 star scale.

The Whole of Home rating covers more ground. It looks at the total energy your home uses, including:

• Lighting efficiency
• Hot water system performance
• Fixed appliances and systems
• On-site energy generation (like solar panels)

This means homes are now assessed on their complete energy footprint. The result? Genuinely more efficient homes that cost less to run day to day.

At Home Group, we design and build with both requirements in mind, so your home performs well across all measures.

How Home Group exceeds minimum standards

At Home Group, we go beyond the 7-star requirement. With over 30 years' experience as home builders, we understand that true energy efficiency comes from combining quality materials with expert design.

The Chicago 35

Single Storey

5

3

2

17m

Smith's Lane Estate

Explore this Display

Premium inclusions as standard

Our standard builds include enhanced insulation coverage, thermally efficient windows, and premium inclusions designed to reduce energy use — without costly upgrades.

These features work together to create homes that are comfortable and cheaper to run from day one.

Design excellence

Our design team stays ahead of building trends and energy efficiency innovations. Every home design in our range incorporates the latest understanding of thermal performance, so it performs well in real-world conditions.

We regularly update our designs for current trends and incorporate the latest energy-efficient technology. The result is a home that looks great and runs efficiently.

Quality construction and attention to detail

Energy efficiency depends on quality construction. Our experienced trade partners execute every detail to the highest standard. From proper insulation installation to precise air sealing, we complete independent quality inspections throughout your build so your home performs as designed.

What this means if you're planning to build

Whether you're a first home buyer, upgrading to a larger home, or investing in property, understanding 7-star energy ratings helps you make confident decisions about your new build.

With Home Group, meeting and exceeding the 7-star requirement is built into every home we create. You don't need to worry about complex upgrades or costly add-ons. Our standard inclusions and expert design mean lower heating and cooling costs from the moment you move in.

Designing your energy-efficient home

When you build with Home Group, our consultants work with you to select a home design that suits your lifestyle, budget, and block. We build energy efficiency into every design, from our compact single storey homes to our spacious two-storey family homes.

We'll walk you through how different design choices affect your home's look and performance. Our goal is a home where energy efficiency and good design work together naturally.

Common questions about energy ratings

Do I need to do anything special to get a 7-star rating?

No. When you build with Home Group, achieving and exceeding the 7-star requirement is built into our standard process. We've developed our designs and construction methods specifically to meet and surpass these standards. You won't need expensive upgrades or special requests.

Will a 7-star home look different or feel less spacious?

Not at all. Modern energy-efficient design is about smart choices, not compromise. Our homes still have open-plan living and plenty of glass, with the same contemporary look you'd expect. They just perform better. You get all the style and space you want, with lower running costs.

Is a higher star rating always better?

Generally yes, but there's a balance. Beyond 7 stars, the cost of improvements can outweigh the energy savings for some buyers. At Home Group, we've found the sweet spot. Our homes significantly exceed the minimum standard and still offer excellent value. The focus is on real-world performance that makes a noticeable difference to your comfort and bills.

What if the requirements change again in the future?

By building to standards that already exceed current requirements, your Home Group home is ahead of any likely future changes. We stay ahead of building trends and regulations, so your home will remain compliant and valuable for decades to come.

See the difference with Home Group

Building a new home to 7-star energy standards means investing in comfort and lower bills. With Home Group's expertise and quality inclusions, your new home will cost less to heat and cool from the day you move in.

Want to see how this works in practice? Our experienced team is here to help you explore your options and find a home that works for you.

Enquire now to discover how Home Group can help you build a home that stays comfortable year-round with lower running costs.