For Australian homeowners, understanding your home’s energy performance is no longer a niche concern, it’s a critical step to managing rising bills and improving comfort. From 1 July 2026, the Australian Government launched a new national Home Energy Rating program for existing homes, providing a consistent, accredited assessment to help you identify cost-effective upgrades. This program replaces previous state-based initiatives like the Residential Efficiency Scorecard, offering a unified approach across the country.
This guide will walk you through what the new rating means for you, how it works, and how you can leverage it to reduce your energy consumption and expenses in 2026.
What is the New Home Energy Rating for Existing Homes?
The new Home Energy Rating for Existing Homes, part of the Nationwide House Energy Rating Scheme (NatHERS) expansion, provides two key metrics after an in-home assessment by an accredited assessor:
- Home Energy Rating (Score 0 to 100+): This score assesses the whole home’s energy performance, factoring in its design, construction materials, insulation, window types, shading, major fixed appliances (like air conditioning, hot water systems, lighting), and any on-site renewable energy generation and storage (e.g., solar panels and batteries). A higher score indicates lower estimated annual purchased energy use. A score of 100 signifies an estimated net-zero annual energy balance, with scores up to 150 possible for homes that export more energy than they consume.
- Star Rating (0 to 10 Stars): This separate rating focuses on the thermal performance of your home’s building shell – its roof, walls, windows, and floor. It indicates how well your home stays warm in winter and cool in summer with minimal mechanical heating or cooling.
Around 70% of Australia’s 11 million homes were built before minimum energy efficiency standards were introduced, often with an average rating below 3 stars. Improving a dwelling’s energy performance from 3 to 5 stars can reduce energy use and costs by 40%.
“The Albanese Government’s investment to expand the scheme from new homes to cover existing homes, gives Australians guidance on how to cut their energy use, with home energy upgrades able to slash energy bills by over 90 per cent in many locations.”
Why Get a Home Energy Rating in 2026?
An energy assessment provides a clear, unbiased snapshot of your home’s performance and offers tailored advice on cost-effective upgrades. This information is invaluable for:
- Reducing Energy Bills: Pinpoint where your home is losing energy and what upgrades will deliver the biggest savings. With electricity and gas prices remaining a significant household cost, understanding your consumption is key.
- Improving Comfort: Address issues that make your home too hot in summer or too cold in winter, creating a more comfortable living environment year-round.
- Increasing Property Value: An official energy rating can enhance your home’s appeal and value, particularly as buyers become more energy-conscious.
- Accessing Green Loans: A Home Energy Rating can help banks better assess green finance loan applications, potentially unlocking discounted rates for energy-efficient upgrades. For more on financing, see our guide on Best Green Loans in Australia 2026: Rates from 4.24% p.a..
How to Get an Assessment and What it Costs
To obtain a Home Energy Rating, you’ll need to engage an accredited Home Energy Rating assessor. These professionals have undergone specialised training and passed a formal exam. The cost of an assessment will vary based on your home’s size, location, and design complexity, and is set by individual assessors. You can find accredited assessors via the official Home Energy Rating website.
The assessor will conduct a thorough in-home evaluation, collecting data on your home’s physical characteristics, fixed appliances, and any existing solar or battery systems. They will then use this data to generate your Home Energy Rating Certificate, which includes both the Home Energy Rating (0-100+) and the Star Rating (0-10), along with practical recommendations for improvements.
Current Energy Prices & Relief in 2026
Managing your energy consumption is more important than ever, even with some recent price adjustments. The Default Market Offer (DMO) and Victorian Default Offer (VDO), which act as safety nets for customers on standing offers and reference prices for market offers, have seen varied changes from 1 July 2026.
Electricity Price Changes (1 July 2026 – 30 June 2027)
| State/Region | Residential Flat Rate DMO/VDO Change | Representative Annual Bill Impact |
|---|---|---|
| New South Wales | Decrease 3.4% to 5.0% | Savings of $66 to $137 |
| South East QLD | Decrease 7.2% | Savings of $155 |
| South Australia | Increase 1.4% | Increase of $33 |
| Victoria | Decrease ~5.0% | Savings of ~$75 (average $1,591/year) |
For households with smart meters, a new Solar Sharer Offer was introduced from 1 July 2026 in DMO regions (NSW, SA, SE QLD). This opt-in tariff provides three hours of free electricity during the middle of the day, offering potential savings of up to 24 kWh daily for those who can shift their usage.
Indicative average retail electricity rates in 2026 show South Australia as consistently the highest (around 34–40 c/kWh on competitive market offers), while Victoria and the ACT are at the lower end (around 27–32 c/kWh). NSW falls into the mid-range (around 29–34 c/kWh). Daily supply charges typically range from $0.90 to $1.50.
It’s important to note that the universal federal Energy Bill Relief Fund ended in December 2025. While automatic federal credits are no longer in place, state-based concessions continue for eligible cardholders. Always compare market offers using government comparison tools like EnergyMadeEasy.gov.au (for NSW, QLD, SA, TAS, ACT) or Victorian Energy Compare.
Top Energy-Efficient Upgrades and Rebates in 2026
Your Home Energy Rating assessment will provide specific recommendations, but here are some of the most impactful upgrades:
1. Insulation
Effective insulation is fundamental to maintaining comfortable indoor temperatures and reducing the need for heating and cooling. Retrofitting insulation, especially in the ceiling, is one of the most cost-effective upgrades for existing homes.
| Insulation Type | Typical 3-Bedroom Home Cost (Installed) | Per Square Metre (Installed) | Notes |
|---|---|---|---|
| Ceiling Insulation | $800 – $2,500 | $12 – $35 | Prioritise R4.0 (warm climates) to R5.0+ (cold climates). |
| Wall Insulation | $1,500 – $4,000 | $18 – $50 | More complex to retrofit, often done during renovations. |
| Underfloor Insulation | $1,200 – $3,200 | $15 – $45 | Improves thermal comfort and can reduce draughts. |
Some states offer schemes, such as the Victorian Energy Upgrades (VEU) program, which can provide significant subsidies for ceiling insulation. Always ask your installer about current state-specific schemes.
2. Heat Pump Hot Water Systems
Replacing an old electric or gas hot water system with a heat pump can dramatically cut your hot water energy consumption. Heat pumps use ambient air to heat water, making them 3-4 times more efficient than traditional electric storage heaters.
| State | Average Installed Cost (April 2026, incl. STCs) | Out-of-Pocket After State Rebates (VIC/NSW) |
|---|---|---|
| National | $4,527 | N/A |
| Queensland | $4,191 | N/A |
| Victoria | $4,405 | $2,667 – $4,073 (depending on replacement) |
| New South Wales | $4,815 | $2,667 – $4,073 (depending on replacement) |
| Tasmania | $6,118 | N/A |
Running costs for a heat pump hot water system are typically $150 to $300 annually, roughly one-third of an old electric storage tank. Premium CO2 (R744) units like Sanden and Reclaim Energy can cost $5,500 to $6,500 installed, offering superior performance in colder climates. For more details, refer to The Cheapest Way to Heat Your Home This Winter in Australia 2026: Save up to $1,300 Annually.
3. Solar Panels and Home Batteries
Installing rooftop solar and a home battery can significantly reduce your reliance on grid electricity and allow you to take advantage of new tariffs like the Solar Sharer Offer.
For NSW homeowners, the NSW Home Energy Saver Program, launched on 17 June 2026, offers significant support. Eligible households can access zero-interest loans of up to $15,000 (repayable over 10 years) for upgrades including solar panels, household batteries, insulation, and reverse-cycle air conditioning. Lower-income households (combined income under $80,000 or eligible concession card holders) may also qualify for targeted discounts of up to $4,000, rolling out later in 2026. These can be combined, with the discount applied first.
Consider linking your solar and battery system with a Virtual Power Plant (VPP) to earn additional income. Explore options in our guide: Join a VPP in 2026: Earn Up To $1,500 Annually & Boost Grid Stability.
4. Smart Home Energy Management Systems
Beyond individual upgrades, integrating smart technology can optimise your energy use. Home Energy Management Systems (HEMS) and energy monitoring systems allow you to track consumption, automate appliances, and react to dynamic pricing. See how these systems can help in our guide: Best Home Energy Management Systems in Australia 2026: Slash Bills by $1,000+ Annually.
Bottom Line
Australia’s new Home Energy Rating for existing homes in 2026 provides a robust framework for homeowners to understand and improve their property’s energy performance. By obtaining an accredited assessment, you gain clear insights into your home’s whole-of-house energy use (0-100+ score) and thermal efficiency (0-10 Star Rating). Leveraging this information, combined with current state-based rebates like NSW’s Home Energy Saver Program and the new Solar Sharer Offer, can lead to substantial reductions in your annual energy bills – potentially by 40% or more – and significantly enhance your home’s comfort. Prioritise upgrades such as insulation and heat pump hot water systems for immediate impact, and consider solar and battery storage for long-term savings and energy independence. The time to act on energy efficiency is now, ensuring your home is both comfortable and cost-effective for years to come.