Energy Rating Requirements in New South Wales

Overview

New South Wales has adopted the National Construction Code (NCC) 2022 energy efficiency provisions, which set a minimum 7-star NatHERS energy rating for new residential buildings. Whether you are building a new home, undertaking a major renovation, or developing a multi-unit residential project in New South Wales, understanding the state's specific energy compliance requirements is essential to obtaining your building approval.

Energy ratings measure how well a building's thermal shell (walls, roof, windows, insulation, and floor) performs in the local climate. A higher star rating means less energy is needed for heating and cooling, translating into lower utility bills and improved occupant comfort. In New South Wales, meeting the 7-star benchmark ensures your building aligns with Australia's trajectory toward net-zero emissions by 2050.

BASIX is unique to NSW. All new dwellings and major alterations require BASIX certification.

Key Legislation

Energy efficiency requirements in New South Wales are governed by the Environmental Planning and Assessment Act 1979, working in conjunction with the National Construction Code (NCC). The NCC sets the baseline performance standards, while state-level legislation and regulations may impose additional requirements or alternative compliance pathways.

For residential buildings (NCC Volume 2, Class 1 and Class 2 buildings), the primary compliance pathway involves achieving the minimum NatHERS star rating through an accredited energy assessment. Commercial buildings (NCC Volume 1, Class 3 through 9) must comply with Section J energy efficiency provisions or demonstrate equivalent performance through a JV3 verification method.

Minimum Star Rating: 7 Stars

New South Wales requires a minimum 7-star NatHERS energy rating for all new residential construction and major renovations subject to building approval. This is assessed using accredited NatHERS software tools such as FirstRate5, AccuRate, or BERS Pro, depending on the climate zone and building type.

The star rating is assessed on a scale of 0 to 10, where 10 stars represents a building that requires virtually no artificial heating or cooling to maintain comfortable temperatures year-round. Achieving 7 stars requires careful consideration of building orientation, glazing specifications, insulation levels, thermal mass, and ventilation design.

An accredited NatHERS assessor evaluates your building plans and produces a certificate confirming compliance. This certificate is a mandatory document for your building approval application in New South Wales. We connect you with accredited consultants who specialise in New South Wales's climate zones and compliance requirements.

State-Specific Programs

New South Wales operates the following energy efficiency programs and compliance frameworks:

• BASIX
• NSW Energy Savings Scheme (ESS)

These programs may impose requirements above and beyond the NCC baseline. An experienced local consultant will understand how these interact with your project and ensure full compliance across all applicable frameworks.

Residential and Commercial Compliance

Residential projects in New South Wales typically require a NatHERS assessment to demonstrate compliance with the minimum 7-star energy rating. For commercial buildings, the compliance pathway involves Section J of the NCC, which covers the building fabric, glazing, air conditioning, lighting, and other energy-using systems. A JV3 assessment offers an alternative verification method using thermal simulation modelling.

Regardless of your building type, our network of accredited consultants across New South Wales can guide you through the right compliance pathway for your project.