NSW’s new energy efficiency requirements effect house renovations, new buildings, and high rises

NSW’s new energy efficiency requirements effect house renovations, new buildings, and high rises


In an effort to reduce greenhouse gas emissions, the New South Wales government has overhauled its energy efficiency legislation, requiring all Australians who are upgrading their homes to comply with a slew of stringent new regulations.

Minimum energy standards for newly constructed dwellings increase from 5.5 to 7 stars.NSW home owners undergoing extensive renovation projects worth $50,000 or more will be impacted by new energy efficiency laws (pictured, Australian tradesmen working on a project)

NSW home owners undergoing extensive renovation projects worth $50,000 or more will be impacted by new energy efficiency laws (pictured, Australian tradesmen working on a project)

Revamped energy efficiency laws enforced on new builds in NSW (pictured) aim to reduce emissions by an estimated seven to 11 per cent

Minimum energy standards for new homes being built in NSW will increase from 5.5 stars to seven stars (pictured, a house under construction in Sydney's north-west)

High-rise towers will also need to have a seven-star energy rating under the new NSW laws

Also applies to homeowners undertaking renovations over $50,000
Due to developers, tiny residential blocks and shopping centers will not be affected.

New, stringent energy efficiency regulations will apply to tens of thousands of homeowners undertaking substantial improvements to upgrade their dwellings.

The New South Wales government published its revised legislation on Monday, increasing the minimum energy standards for newly constructed homes from 5.5 to 7 stars in an effort to reduce emissions by an estimated 7 to 11 percent.

The new policy also applies to homeowners undertaking renovations exceeding $50,000.

In addition to a seven-star energy rating, high-rise towers and major office buildings will be required to demonstrate the ability to become entirely electric-powered.

However, the new legislation will not apply to small residential buildings and shopping centers due to the worries of developers regarding extra complexity and expense.

Planning Minister Anthony Roberts stated, “We must make our homes, workplaces, and lodgings more comfortable while saving people money on their energy bills and contributing to our net zero goal.”

New energy efficiency requirements will affect homeowners in New South Wales undertaking significant renovations costing at least $50,000. (pictured, Australian tradesmen working on a project)

The minister noted that people living in high-rise apartments may save up to $265 annually on energy costs, while those living in houses in western Sydney might save up to $1,070 annually.

The new Sustainable Structures State Environmental Planning Policy will not apply to dwellings located in the climate zone of the north coast or to apartment buildings with fewer than six stories.

These exclusions happened as a result of the inability of the energy bill reductions afforded by the new policy to offset the higher building costs in these regions.

Mr. Roberts denied he had rescinded his predecessor’s stricter SEPP, but rather decided to halt its implementation after consulting with developers and taking into account the government’s housing affordability goal.

New South Wales’ (NSW) revamped energy efficiency laws for new construction (shown) seek to lower emissions by seven to eleven percent.

At a parliamentary budget estimates session on Monday, he stated, “There was widespread agreement across the industry that it would not only add uncertainty, but also increase the prospective cost of the construction.”

The SEPP will also mandate that by 2035, the majority of large commercial developments and state-significant developments, such as hospitals, prisons, schools, and ports, will be able to obtain all of their energy needs from renewable sources.

Some major commercial ventures will also be required to purchase carbon offsets for fossil fuel consumption on-site.

However, shopping centers are exempt due to complexity issues, according to the department.

Embodied emissions – those produced in the manufacture of materials from mine to factory to construction site – will be monitored prior to the potential future implementation of standards.

Minimum energy criteria for newly constructed residences in New South Wales will increase from 5.5 to 7 stars (illustration: a home under construction in Sydney’s north-west).

According to the Property Council of Australia, such regulations were an essential next step.

Lauren Conceicao, deputy executive director of the state of New South Wales, cautioned against a disparate approach to commercial and residential projects.

This will cause market confusion and diminish the effectiveness of the rules.

The Nature Conservation Council of New South Wales applauded the introduction of higher star ratings, but stated that standards were required to improve the health and comfort, energy efficiency, and thermal performance of existing dwellings.

James Tremain, a spokesman for the NCC, told AAP that the draft SEPP had a number of extremely beneficial measures, such as tree retention and canopy cover regulations for new developments, which are crucial for creating livable communities in a warming environment.

Every three years, the SEPP will be evaluated.

Under the new NSW regulations, high-rise towers will also be required to have a seven-star energy rating.


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