7-Star Energy Ratings for New Melbourne Homes
Since 1 May 2024, new homes in Victoria must meet a 7-star NatHERS thermal rating and a Whole of Home energy budget. It changes how homes are designed and adds some cost up front - but it also makes them cheaper and more comfortable to live in. Here is what the standard means for your build.
Mandatory since
1 May 2024
NCC 2022 in VIC
Thermal rating
7 stars
NatHERS minimum
Plus
Whole of Home
appliance energy budget
Free win
Orientation
north-facing living
What the 7-star standard actually requires
From 1 May 2024, Victoria adopted the National Construction Code (NCC) 2022 energy standards for new residential building approvals. There are two parts. The first is a minimum 7-star NatHERS thermal rating - a measure of how well the building fabric (walls, roof, windows, insulation, orientation) keeps the home comfortable without heating and cooling. The old minimum was 6 stars, so 7 stars is a meaningful step up in the building envelope.
The second part is new: a Whole of Home assessment that sets an energy-use budget covering fixed appliances - heating and cooling, hot water, lighting, and any pool or spa pumps. A stand-alone or semi-detached (Class 1) home must score at least 60, and apartments (Class 2) at least 50. Rooftop solar is not mandatory, but it can be used to offset appliance energy and help meet the budget.
- Minimum 7-star NatHERS thermal rating (up from 6)
- Plus a Whole of Home energy budget for fixed appliances
- Class 1 homes must score 60, Class 2 at least 50
How homes reach 7 stars
Most of the gain comes from design decisions that cost little if made early. Orientation is the biggest free lever: living areas and main glazing facing north capture winter sun and are easy to shade in summer, which lifts the rating before you spend a dollar on materials. After that it is the fabric - higher-performance glazing (often double glazing or improved frames on key elevations), better wall and ceiling insulation, reduced draughts, and eaves or shading over north and west windows.
An accredited thermal performance assessor models your specific design in software such as FirstRate5 and tells you where it lands and what to change. Because the assessment is design-specific, a good builder and designer will aim for 7 stars through smart layout and orientation rather than expensive bolt-ons - which is why getting the energy assessment early, not after the plans are locked, saves money.
- North-facing living and glazing is the cheapest star
- Better glazing, insulation and shading lift the fabric rating
- Get the assessment early, while the design can still change
What it costs - and what it saves
The 7-star standard adds some up-front cost compared with an older 6-star home, mostly in glazing, insulation and the assessment itself. Industry estimates put the fabric upgrade in the low thousands to around ten thousand dollars depending on the design and how efficiently it is achieved - a well-oriented home reaches 7 stars far more cheaply than a poorly oriented one patched with expensive glazing.
Against that, a 7-star home with efficient electric appliances is cheaper to run and more comfortable year-round, and the saving compounds over the life of the home. The costliest path is ignoring energy until the plans are fixed and then paying to retrofit performance. Treat it as a design input from day one and the cost largely disappears into good decisions you would want anyway.
- Up-front cost is mostly glazing, insulation and the assessment
- A well-oriented design hits 7 stars far more cheaply
- Running costs and comfort improve for the life of the home
Who signs it off and when it does not apply
Compliance is demonstrated by an accredited assessor and checked by your registered building surveyor as part of the building permit. The standard applies to new building approvals from 1 May 2024; it is not retrospective - homes with a building permit issued before that date, or where a surveyor certifies the design was well advanced beforehand under the transition rules, can fall under the previous 6-star standard.
If you are building now, assume 7-star plus Whole of Home applies and choose a builder and designer who treat it as routine. BuildPilot is live in Victoria - tell us your brief and block and we will match you with vetted Melbourne builders who design to the current standard efficiently, so you meet it without over-spending.
- Assessor models it, building surveyor signs it off at permit
- Not retrospective - pre-May-2024 permits may be 6-star
- Building now means planning for 7-star plus Whole of Home
Official Victorian sources referenced
Join us in this enlightening episode as we delve into the world of energy ratings and sustainable living. We kick off by introducing AI and machine learning into energy ratings, paving the way for a greener future. Discover the ins and outs of NatHERS (Nationwide House Energy Rating Scheme) and what it takes to achieve a coveted 7-Star rating. Explore the key design elements impacted by these changes, and learn how land orientation and neighboring houses can influence your home's price. We also discuss the shift from 6-Star to 7-Star requirements, the associated costs, and the 'whole of home' perspective. Plus, we address whether now is the time to buy to avoid the new requirements and explore alternative materials for achieving higher energy ratings.
Watch full episodeFrequently asked
Do new Melbourne homes have to be 7-star rated?+
Yes. Since 1 May 2024, new residential building approvals in Victoria must meet a minimum 7-star NatHERS thermal rating plus a Whole of Home energy budget, under the NCC 2022 energy standards. It applies to new permits from that date and is not retrospective.
What is the difference between 7-star NatHERS and Whole of Home?+
The 7-star NatHERS rating measures the building fabric - how well walls, roof, windows, insulation and orientation keep the home comfortable without heating and cooling. Whole of Home is a separate energy budget for fixed appliances like heating, cooling, hot water, lighting and pool pumps. New homes must meet both.
How much does building to 7 stars cost?+
It adds some up-front cost over an old 6-star home - typically low thousands up to around ten thousand dollars, mostly glazing and insulation - but a well-oriented design reaches 7 stars far more cheaply. Lower running costs and better comfort offset the outlay over time.
Do I need rooftop solar to meet the standard?+
Solar is not mandatory. However, it can be used to offset appliance energy consumption and help a home meet its Whole of Home budget, so many new builds include it as a cost-effective way to comply.
How do I reach 7 stars without over-spending?+
Get an energy assessment early, while the design can still change. Orient living areas and main glazing north, add eaves and shading, and use good insulation - these lift the rating cheaply. Expensive glazing bolted onto a poorly oriented home is the costly path.
Can BuildPilot match me with a builder who designs to 7 stars?+
Yes. BuildPilot is live in Victoria. Tell us your block and brief and we will match you with vetted Melbourne builders who treat 7-star plus Whole of Home as routine and design to it efficiently. The builders contact you.
Note: the stories below are Adelaide-based clients - the underlying builder-matching process is identical for Melbourne buyers.
How our process runs - real client stories
Federuzzi Development
Two double-garage homes squeezed onto an odd-shaped subdivision block in Ingle Farm, with the equity earmarked to fund the next development.
Read the case studySterai Residence
A practical, well-planned knockdown rebuild on a tricky triangular block in Ingle Farm.
Read the case studyCompare the options
The material and system choices that move your Melbourne build budget most, weighed up in plain English for Victoria.
Sources
Last verified June 2026- Energy Victoria - 7-star building standards link
- Sustainability Victoria - 7-star homes explained link
- NatHERS - Victoria adopts NCC 2022 link
Cost ranges are planning estimates cross-checked against the sources above, not quotes. Prices move with materials, labour, site conditions and council rules. Always confirm against a written, fixed-price quote for your own block.
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