NatHERS Star Ratings Explained: Building for Energy Efficiency in Victoria
4 May 2026 · 3 min read
If you've started researching a new build in Victoria, you've likely come across NatHERS star ratings and wondered what they actually mean for your project. Here's a straightforward explanation of the current standard, what it affects, and why building beyond the minimum is often worth considering.
What NatHERS Actually Measures
The Nationwide House Energy Rating Scheme rates a home's thermal performance on a scale from zero to ten stars. It measures how much energy a home needs for heating and cooling to stay comfortable across the year, based on its insulation, glazing, orientation and construction materials. A higher star rating means a home naturally holds a comfortable temperature with less reliance on air conditioning and heating.
The Current Minimum in Victoria
Since 1 May 2024, all new homes in Victoria have been required to meet a 7-star NatHERS minimum, up from the previous 6-star standard. Alongside the thermal rating, the updated National Construction Code introduced a Whole-of-Home energy budget, which accounts for the energy use of fixed appliances like heating, cooling, hot water and lighting, with rooftop solar able to offset that budget. In practical terms, this means new homes need better insulation, higher-performing glazing, and more deliberate orientation than homes built even a few years ago.
Why Building Beyond 7 Stars Makes Sense
Seven stars is a minimum, not a ceiling. At Saleh Homes, our smart and energy-efficient builds are designed toward a 10-star NatHERS target, which materially reduces heating and cooling costs beyond what the minimum standard achieves. The gap between 7 and 10 stars mostly comes down to decisions made early: glazing specification, insulation levels, and how well the home's orientation and shading are matched to its block, which is exactly why energy performance needs to be part of the conversation at the design stage, not bolted on afterwards.
What Drives a Higher Star Rating
Orientation is usually the single biggest factor, positioning living areas and glazing to capture winter sun while shading them from harsh summer sun. Beyond that, double glazing, higher insulation levels in walls and ceilings, and eaves sized correctly for your latitude all contribute meaningfully. None of these require exotic materials; they require getting the fundamentals right from the first design pass.
How This Interacts With Your Location
A block's aspect, prevailing wind and shading from neighbouring buildings all affect how achievable a given star rating is, and how much work is required to get there. If you're building in South East Melbourne specifically, our guide to energy-efficient building in South East Melbourne looks at how the area's climate and typical block sizes affect this.
What This Means for Running Costs
Independent modelling has found that Victorian households in 7-star homes can expect several hundred dollars a year in heating and cooling savings compared with the previous 6-star standard, with even greater savings reported for well-designed all-electric homes. Those savings compound every year you live in the home, which is a large part of why energy performance is worth treating as a genuine design priority rather than a compliance box to tick.
Bringing It Together With Smart Home Design
Star ratings, solar, battery storage and home automation are best thought of as one integrated system rather than separate decisions. Our guide to smart home technology covers how these pieces fit together in a genuinely well-designed new build.
Related Reading
Start Your Project.
We’ll Take It From Here.
Tell us about your vision and we’ll be in touch within one business day. Obligation-free consultation.