Residential energy efficiency standards
Public consultation to improve residential energy efficiency standards for housing in the National Construction Code (NCC) 2022 took place between 29 August and 17 October 2021.
On 26 August 2022, Building Ministers agreed to update the residential energy efficiency standards for new houses and apartments in the NCC 2022.
What this means
As a result of these changes, new homes will need to comply with both a:
- 7-star rating (out of 10) for the building shell (i.e. roof, walls, windows and floors)
- new whole-of-home energy budget that will assess the energy efficiency of the home’s major appliances and any on-site renewable energy system, such as solar photovoltaic (PV).
These changes will:
- make our homes more comfortable to live in
- provide cost-of-living savings on energy bills over the life of the home
- support efforts towards emissions targets.
Impact of new residential energy efficiency standards
For a new home in Queensland, the new standards will provide an average electricity saving of $185 per year across Queensland’s 4 climate zones.
This includes an average capital cost of $1,085 over a payback period of 5.8 years.
The region that a person lives in will influence the energy efficiency features that are needed.
The following table provides a summary of costs and savings under the NCC 2022, based on Queensland’s climate zones.
| NCC climate zone* | NCC 2022 D-RIS Estimated marginal capital cost** | Estimated electricity savings per annum*** | Payback period**** |
|---|---|---|---|
| 1 – Tropical e.g. Cairns | $1,058 |
$212 (2933 MJ: 815 kWh x 0.26c/kWh) | 5.0 years |
| 2 – Subtropical e.g. Brisbane | $723 |
$85 (1180 MJ: 328 kWh x 0.26c/kWh) | 8.5 years |
| 3 – Hot arid e.g. Longreach | $888 |
$227 (3148 MJ: 874 kWh x 0.26c/kWh) | 4.0 years |
| 5 – Warm temperate e.g. Toowoomba | $1,671 |
$216 (2987 MJ: 829 kWh x 0.26c/kWh) | 7.8 years |
| Queensland average | $1,085 | $185 | 5.8 years |
Notes:
* NCC climate zones for Queensland (PDF, 844KB)
** NCC 2022 decision regulation impact statement (PDF, 9.6MB) for a proposal to increase residential building energy efficiency requirements (Table 6.1, page 164 for marginal capital cost and Table 6.8, page 174 for megajoules only)
*** Megajoules (MJ) converted to kilowatt hours (kWh) is 1 MJ = 0.277778 kWh, then multiplied at the averaged retail residential tariff rate of $0.26c/kWh (based on average market rates offered in South East Queensland on 1 September 2022)
**** Payback period = marginal capital cost ÷ electricity savings
Implementation
On 26 August 2022, Building Ministers agreed that the NCC 2022 will be available from 1 October 2022 for people who want to use the new standards voluntarily.
The NCC 2022 will commence on 1 May 2023, with a transition period to 1 October 2023 for the residential energy efficiency standards. These transitional arrangements acknowledge the pressures that industry is currently facing by providing additional time to adjust.
The Australian Building Codes Board (ABCB) and state jurisdictions will work with industry on a strategy to support the industry’s implementation of the updated residential energy efficiency standards.
The NCC 2022 preview is now available. For more information about the NCC 2022, visit the ABCB website.
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- Last updated:
- 20 September 2022