Australia will soon roll out an expansion to the Nationwide House Energy Rating Scheme (NatHERS), a program that will apply an Energy Star rating to existing homes similar to the energy ratings seen on your fridge or washing machine. 

We may be fast approaching a time when an energy rating appears beside every listing photo. Buyers will use it like they use bedroom counts today, rewarding homes that score well and bargaining hard on those that don't.

A voluntary scheme opens in July 2025, with a mandatory rollout expected in 2027. Agents that take a proactive approach stand to gain a competitive edge, while those who wait will be forced to play catch-up. So how can you prepare?

How the scheme works

NatHERS is nothing new. It's rated the efficiency of newly built homes since the '90s, mandating that all new houses and apartments are built to a minimum standard (at least 7 stars in most states).

What's changing here is the expansion of NatHERS to existing homes to make that efficiency rating publicly available at the point of sale or lease. 

Every existing property will receive a NatHERS star rating produced by accredited assessors who measure insulation levels, window performance, fixed appliances and any on-site solar or battery capacity.

Assessors feed that data into updated NatHERS software, which issues both the star badge and a 'Whole of Home' report showing estimated annual heating, cooling and appliance costs plus targeted upgrade suggestions.

A typical assessment is expected to cost about $250 to $650 with a two-day turnaround for a report, according to Green Choice Consulting. Vendors receive the report immediately, allowing time to complete low-cost upgrades — such as draught sealing and LED light swaps — before the listing goes live.

Results are lodged on a central register and will be audited at random, so accuracy matters.

Evidence the rating improves sale prices

Domain’s Sustainability in Property Report 2025 shows energy-efficient homes now attract a clear premium across the country. 

Nationally, houses with strong efficiency features sold for 14.5 per cent more – about $118,000 extra – than comparable non-efficient homes, while efficient units secured a 12 per cent uplift, or around $75,000.

Canberra, which has had mandatory energy disclosure since 2004, provides an even sharper case study. 

Domain's report found that houses in the ACT with a six-star Energy Efficiency Rating fetched 10.8 per cent – or roughly $94,000 – above less-efficient offerings, and units attracted a 17.6 per cent premium.

But, while energy ratings have been the norm in Canberra for decades now, the difference that home energy efficiency makes in most other cities is even more pronounced. 

These results confirm what the upcoming national scheme will crystallise elsewhere: buyers put real dollars on better star ratings, and sellers who lift their score can tap into a tangible pricing edge.

Why it matters for listing campaigns

With green homes becoming a rising priority for buyers, there's a clear opportunity to boost competition by putting a property's energy efficiency features front and centre. 

An energy star rating reshapes buyer perception in the same way a school-zone catchment or a water view does. A low score must be handled up-front and priced accordingly; hiding it will only invite late-stage discounting.

Lenders like CBA, Westpac and NAB have all introduced green home loan products which give borrowers access to lower mortgage rates for homes with a NatHERS star rating of 7 or above, further incentivising buyers to seek out energy-efficient options. 

But lower-rated homes aren't necessarily doomed — even a modest upgrade plan can shift an older dwelling into a more market-friendly band.

Insulation top-ups, draught sealing and LED upgrades are all fast and relatively affordable options that can lift an older property's rating significantly, potentially bringing a strong return on investment.

Action steps agents can take now

With significant changes on the way, it's important that agents get ahead of the curve and capitalise on these new opportunities. 

For now, it's worth considering how to begin implementing the following:

• Adding an 'energy rating' item to every appraisal template and discussing it before photography is booked. 
• Lining up at least two local NatHERS assessors so clients are not left waiting when voluntary assessments open. 
• Building a referral list of 'green trades' – eg. insulation installers, energy-efficient lighting suppliers and HVAC technicians – to streamline upgrade quotes. 
• Training the sales team to translate energy stars into annual bill savings. 
• Reserving a permanent slot for the star badge and a one-line savings summary in all listing templates.
• Encouraging vendors to look into the government's Household Energy Upgrades Fund which offers low-cost finance to pay for improvements like insulation, solar and battery systems.

Adopting these habits sooner rather than later positions any agency to meet the new rules with ease and to turn a strong energy star strategy into an advantage over the competition.

Looking ahead

The timetable could still shift by a few months in each state, but the direction is locked in.

Agents who master the rating system early will stand out as trusted advisers, help vendors capture price premiums and ensure campaigns run smoothly when disclosure becomes compulsory. 

When the badge lands on every portal search result, homes that shine brightest will command the strongest competition. Preparing clients now turns an impending compliance rule into a clear competitive edge.