Improve Your Environmental Performance Rating, Improve Your Market and Rental Values
There is currently a great deal of change occurring in the area of improving the environmental performance of homes, as well as new legislation about the required disclosure of performance ratings. What this means is that, if you understand the legislation and make the most of it, you can improve the performance of your home, and take advantage of funding to make the improvements. In the process, you will improve the value of your home or premises, as well as its rental value. All of this means that installing solar energy (using photovoltaics) will benefit you, because of the energy savings it reaps, and its affordable installation because of government rebates and feed-in tariffs. This is a worthwhile capital investment which will return a higher environmental rating, which will in turn increase the market and rental value of your home. Interested? Read on!
Improving Environmental Performance and Disclosure
The number of Australian homes is growing, as is the amount of energy they consume. In fact, it is projected that between 1990 and 2020, Australian homes will have substantially grown in size and will eventually consume 55% more energy. Currently, Australia has over 8 million homes, and these account for more than 10% of all its green house gas emissions and 13% of all the energy used.
To address this trend and mitigate its effect on the environment and our economy, the Australian Government is studying the impact of introducing ratings on building performance, equipment, and the appliances we use at home and work, as well as exploring different methods to encourage saving energy and to reduce energy costs.
Saving energy and energy cost reduction is currently being achieved through a variety of ways including: regulations; incentives; financial support to consumers and the renewable energy industry; and providing education and information to address our increasing energy demands. It is hoped these initiatives will have an impact on the way in which homes are renovated, designed and built, as well as how Australians will use energy in the future.
New Building, Homes and Renovations - Building Code of Australia
The 130,000 new homes built annually in Australia are one of the largest areas of opportunity that can immediately impact energy issues. The Building Code of Australia stipulates minimum requirements for new building work and is designed to make homes more efficient, more liveable and provide ongoing cost-savings in running a household. To comply with new regulations and with the National Strategy on Energy Efficiency new homes must:
- Possess a star energy of 6 stars or better rating after May 2011.
- Implement energy efficient standards for things like solar hot water, lighting and
air-conditioning systems.
These standards are updated regularly through a consultative approach initiated by the Australian Building Codes Board This board conducted an analysis of the benefits and costs for new homes meeting these stricter requirements - Commercial and Residential Consultation RISs for BCA2010 Energy Efficiency Proposals - Australian Building Codes Board, September 2009. Some of the summarised findings are as follows:
- Greenhouse gas emissions could be reduced by up to 600,000 tons by 2020 as a result of these new standards.
- Costs and savings for each individual home owner will be dependent upon a number of factors. Things such as the materials used, the design of the home, and appropriateness to the climate zone and orientation of the house were likely to impact the amount spent and the long-term savings. The cost and savings method used to calculate these factors was a conservative, rather than a low or lowest approach.
- On average, as a result of these initiatives, a net saving of up to $8,025 and a net cost of up to $2,240 could be expected. This was achieved with a minimal effect on the cost of a new home, dwelling or apartment.
- The saving in capital cities was over half a percent of total costs, whereas the cost incurred for a new dwelling was approximately one-quarter of the cost of the dwelling.
The standards are legislated through the states and territories, and they decide to which new works the energy efficiency provisions apply to. Further information on this topic can be found on the National House Energy Rating Scheme website.
The Australian Government is also conducting its own evaluation of Energy Efficiency Standards, in order to provide industry and government an accurate picture of the effectiveness of energy-efficient housing standards. The results of the evaluation are expected to be available mid-2012 and it is expected that the 5 star standard (used in the 2006-2009 Building Code Of Australia) will be pitted against earlier standards.
Existing Buildings and Environmental Performance Disclosure
Governments have proposed and are currently developing new legislation which, if passed, would require owners selling or leasing their houses, apartments or flats to provide performance data to those purchasing or leasing their properties. This would allow comparisons between different types of properties. Performance areas likely to be rated are energy, water and thermal (efficiency and running costs), and greenhouse emissions. It is likely that homes will be assessed using a rating system such as the star rating system. These ratings could also be used as a tool to promote properties and may be required to be disclosed and openly labelled when selling or leasing a property. It is theorised the ratings would provide incentives for better design and construction and would encourage property renovations which make dwellings more energy efficient.
In totality, these changes are likely to be phased in from 2012, after extensive consultation on matters such as: what information is to be provided and required; how to assess and rate performance; and what performance measures should be regulated. It is likely that the phased-in approach will commence with disclosure of energy efficiency. Some of these changes have already begun, with disclosure being compulsory for the sale or rental of office buildings over 2000 square meters. This is soon to be followed by the phasing-in disclosure of all residential properties by May 2011.
Some states such as the ACT and Queensland already require disclosure of some efficiency information to buyers and renters. Initial perusal of the data reflects that: i) increasing water and efficiency increased a home’s performance rating, and that ii) higher performance ratings correlated with a home’s higher market value. Therefore, initial data suggests that improving a home’s rating will make the property more desirable to a purchaser as well as help realize a higher price for a home or rental property. Details of this can be found in Energy Efficiency Rating and House Price in the ACT report
A link to the government website with more details on EPD can be found below:
www.environment.gov.au/sustainability/energyefficiency/buildings/homes/index.html#new
Measures The Australian Government Are Taking to Improve Sustainability
The Australian Government is taking a number of measures to assist Australian home owners improve the sustainability of their properties. Some of these measures include:
- Providing financial incentives, introducing regulation and strategies and providing information and resources, with the aim of improving sustainability within residences, businesses and government.
- Enforcing stricter requirements in building codes. This will cover issues such as performance ratings on buildings to be sold or leased and energy ratings on appliances and equipment.
- Financial support and incentives in the form of rebates for those home owners who want to install a variety of sustainable solutions, including greenhouse efficient hot water systems, installation of renewable energy systems, rain water tanks and grey water systems.
- Free sustainability assessments to provide customised advice to individuals.
- Advice on support from the Australian Government as well as your state or territory government can be obtained at www.livinggreener.gov.au
Further Resources and Information:
Star ratings are required by product manufacturers to disclose water efficiency (using a star rating) on common appliances. The Water Efficiency Labelling and Standards is a joint initiative of the Australian Government and the state and territory governments. Information is provided on the following website: Water efficiency labelling and standards scheme website
- Improving the efficiency of appliances and equipment
The Australian Government has regulated minimum energy performance standards and energy labelling for a wide range of household and commercial appliances and equipment. Living Greener website
- How well does your home perform?
The Nationwide House Energy Rating Scheme includes computer simulations to assess the potential thermal comfort of Australian homes on a scale of zero to 10 stars. The more stars, the less likely the occupants are to need cooling or heating to stay comfortable House energy ratings
- Information on sustainable urban development
The Your Development website provides a guide for developers, architects and urban planners to achieve more sustainable subdivisions and urban infill developments. The resource was funded by the Australian Government and developed in cooperation with CSIRO, state and territory governments and the building and design industry.
Your Development website
- Sustainable Design, Construction & Renovation:
For independent advice on this see the following resource designed by the Australian Government. The “Your Home Materials” Your Home website was developed in association with the Building Design & Construction Industry
Information about the energy rating of windows (on a scale of 1-5 stars) can be found on the following website: Window energy rating scheme website This scheme is administered with the support of the Australian Government by the Australia Window Council. Increased window performance decreases heating and cooling costs and improves energy performance through minimising energy loss in homes. |
