Do you know that residential buildings in Australia account for around 24% of the country’s energy use and more than 10% of its total carbon emissions? Everyone in Australia desires an energy-efficient home as it’s not only comfortable to live in but also saves a lot on energy bills.
These two can be vital factors for prospective homeowners or renters. Even a review of international research discovered that energy-efficient homes usually fetch a higher price.
An energy performance rating like the BASIX Certificate is an ideal way to show how energy efficient a home could be. Many countries have mandated that sellers obtain and disclose a home’s rating to potential buyers.
Although currently there is no national requirement for homeowners to disclose their home’s energy efficiency score at the time of sale, Europe has been doing it for the past thirteen years and ACT for the last ten years.
Let’s read on to learn the impact of energy-efficient homes on their resale value.
What is Energy Efficient Home Design?
Energy-efficient home design can be defined as the deliberate approach to construct or retrofit a residential building with the main focus on minimising energy usage and maximising energy efficiency.
This design can incorporate features such as strategic window placement, advanced insulation, environmentally friendly building materials, energy-efficient appliances, and renewable energy sources to reduce energy consumption, environmental impact, and utility bills.
The primary aim behind using an energy-efficient home design is to create a comfortable, healthy and sustainable living space that can boost the home’s resale value and benefit homeowners and the planet.
Energy Efficient Homes Resale Value: What Does the Research Show?
Many relevant studies show that more energy-efficient homes fetch homeowners higher prices than less energy-efficient but otherwise comparable homes.
Now the question is, what sort of premium do houses with the higher energy rating by professional BASIX Consultants attract? It usually ranges between 2% and 10%.
Price effects are typically considered in two ways. The first involves comparing energy-efficient rated houses versus unrated residences.
The second involves comparing higher-rated houses with the lower-rated ones. In both cases, it was found that homeowners fetch price premiums.
A recent study undertaken in the ACT discovered that 85% of the houses with a higher energy rating generally receive a premium resale value ranging between 2.4% and 9.4%.
Compared to a 3-star home per the current NatHERS scheme standard, a 6-star house could receive a higher resale price of around 2.4%, with a 7-star home receiving approximately a 9.4% increase in resale price.
For instance, the median house price in the ACT is approximately $773,653, equating to a potential price increase of $18,500 to $72,721.
In addition, this price premium represents a strong return on investment (ROI) for individuals building or renovating their homes. You shouldn’t be bothered by the added cost of building an energy-efficient home.
A 2009 study showed that a 7.2-star house provided the best return on investment (ROI) with a payback of seven years and an 18% internal rate of return.
How Will This System Benefit Australia?
Disclosing the energy efficiency score of houses in Australia by the BASIX Report will benefit people trying to sell or buy energy-efficient homes. Moreover, it will also be good for society.
It’s estimated that approximately half of the houses that will be used in 2050 have already been built. If the country wants to reduce carbon emissions and build a sustainable environment meaningfully, it’s imperative to tackle its existing building stock.
A scheme allowing homeowners to capitalise on their home’s energy efficiency would change the economics of retrofitting existing homes.
Moreover, homeowners will have a clear incentive, i.e., increasing their home’s resale value, to improve their building’s energy efficiency without needing large government subsidies.
Australia can follow these steps to help homeowners measure the energy efficiency of their homes:
● Define a nationally consistent energy-efficiency rating tool for existing houses.
● Provide a framework for homeowners to voluntarily disclose the genuine energy performance of their houses when selling or leasing the property.
● Make it mandatory for homeowners to disclose their home’s energy rating when it’s being sold or leased.
● Introduce minimum standards of energy performance for the rental residential buildings.
How Can You Build an Energy-Efficient Home?
Building an energy-efficient home is vital to secure higher resale value. However, you might be confused about how to build an energy-efficient home. The professional BASIX Consultants recommend incorporating these critical principles of an energy-efficient home:
● Strategic insulation:
Using advanced insulation materials and techniques can help minimise heat transfer and maintain stable indoor temperatures.
● Energy-efficient appliances:
Choosing appliances with high energy efficiency ratings will reduce your home’s energy consumption.
● Optimised window placement:
You should strategically position windows to maximise natural light and heat and minimise heat loss and gain.
● Sustainable building materials:
Look for eco-friendly, durable materials with good thermal properties to make your home more energy efficient.
● Renewable energy sources:
You can generate clean energy by installing solar panels, wind turbines, or other renewable energy systems.
● Efficient HVAC systems:
The ideal way to reduce energy waste is to install appropriately sized and maintained heating, ventilation, and air conditioning system or (HVAC systems).
● Energy rating systems:
You should refer to star energy rating schemes in Australia, like NatHERS, BASIX certificate, etc., to gain insights into your home’s expected energy performance.
To sum up it all
Choosing to live in an energy-efficient home in Australia can hold the potential to transform multiple aspects of an individual’s life significantly.
It offers several environmental benefits while reducing costs, enhancing comfort, and improving overall quality of life.
It’s no secret that the COVID-19 pandemic significantly impacted house sales and selling prices. Understanding the significance of having energy-efficient homes, BASIX consultants can help you build an energy-efficient home.
The BASIX Certificate disclosing your home’s energy efficiency score can help you fetch a higher price for your home when considering selling or leasing it.
Highlighting aspects like efficient hot water systems, solar PV systems, or strong insulation levels can help you secure a better price for your house.
