Sustainable building reforms offer long-term savings for households

Home buyers and businesses can look forward to lower energy bills, with new sustainable building (BASIX) energy standards now in effect after extensive engagement with the building sector.

The NSW Government’s Sustainable Building State Environment Planning Policy (SEPP) offers developers and homeowners a wide choice of measures to achieve the new building standards.

Building Sustainability Index – or BASIX - standards were introduced in 2004, and last increased in 2017, to improve the energy and thermal performance of homes, providing better comfort, and energy and water efficiencies. The new changes include:

• Raising thermal performance standards up to 7 stars as defined by the Nationwide House Energy Rating Scheme (NatHERS)
• Increasing emission reduction requirements by 7 to 11 per cent - depending on location and dwelling type; and
• Introducing mandatory assessment and reporting of building material emissions for every new home.

The new standard cuts thermal energy use by at least 20 per cent and will save homeowners on power bills. The changes can save considerable amounts of energy helping to make new homes more comfortable, particularly in the hotter areas of the State during summer.

Feedback gathered through extensive consultation before and since the SEPP was announced in August 2022 has helped to make sure the standards are cost-effective and minimise disruption to the building industry.

New homes already under contract before 1 October would be exempt from new sustainable building (BASIX) standards until 30 June 2024.

Quotes attributable to the Minister for Planning and Public Spaces Paul Scully:

“These improved energy standards will provide significant cost savings for households on their electricity and gas bills.

“New homes built from 1 October onwards stand to save an average of almost $17,000 in energy bills over the lifetime of a standard 25-year home loan.

“Builders can use a wide range of options to meet the new standards – they can install more insulation, improve the performance and location of windows, select a more energy-efficient hot water system and install 3-star reverse cycle air-conditioning systems.

“Energy sustainability and modern construction improvements have come a long way over the last 15 years and it’s time we set new industry standards to help NSW achieve its target of reaching net zero target by 2050.”

“The new BASIX standard is the very least we can do to produce modern houses equipped to withstand heat and cold.

“In a national first, the SEPP also introduces new sustainability measures, including new energy and water standards, for non-residential development like offices, libraries and schools, which will be responsible for 85% of all non-residential emissions by 2050.

“Western Sydney was the hottest place on earth on some days last summer. The changes required are frankly the least needed to provide decent modern homes.

Quotes attributable to Gary Rake, CEO Australian Building Codes Board

“These increased BASIX standards provide benefits for young families, who could otherwise get trapped with a home that has a west-facing bedroom that is too hot for their young children to sleep in during summer. This means they would need to run the air conditioner more or spend money to add ceiling fans later.

“It’s also important to note that is a move from 6 Star to 7 Star, we’re not starting from zero. Our average cost analysis for Sydney was $11/sqm ($2,200 for a 200m2 house). Simple and affordable upgrades such as the installation of ceiling fans or better insulation can help a home meet the new standards.

“This improvement will be great for the people of NSW. New homes will be more able to withstand extreme weather conditions while providing a permanent improvement to the value of a house. The initial investment will retain its value when the house is sold. It also saves money for the homeowner or renter along the way through lower energy bills and improves comfort.

For more information visit Sustainable Buildings SEPP.