NSW Climate and Energy Action

Energy-smart agents get ahead of the game

03 March 2026
Climate Change Fund Communities

Australia has some of the coldest and least energy-efficient homes in the developed world. According to the CSIRO, the average home built before 2004 is rated just 1.8 stars out of 10 for energy efficiency.1

Couple taking luggage out of their car in home driveway
More than 70% of Australian homes have an energy efficiency rating of less than 2, which impacts the health, wellbeing and budget of householders.

With energy performance fast becoming a key factor in how homes are marketed and sold, knowing a dwelling’s Whole-of-Home Energy Rating can be useful — for both real estate agents and potential buyers.

Empowering agents to make a change

Home Energy Ratings are similar to the star ratings on energy-efficient appliances, but they assess a house or apartment’s entire energy performance. They are managed by the Nationwide House Energy Rating Scheme (NatHERS). 

Diverse family in lounge room running air conditioning
You can use the Home Energy Rating to work out how efficient and costly (or not) a home is to run.

The ratings help buyers and renters understand the whole picture of a home’s energy use, comfort and affordability.  But, many real estate agents aren’t using this valuable information.

To address this, the NSW Government has teamed up with the Australian Government and real estate professionals to design and pilot a training program to help agents understand and use Home Energy Ratings in their daily work. 

This is part of our broader efforts to ensure the real estate sector is ready when NSW transitions to mandatory Home Energy Rating disclosures.  

Real estate agent in home with family in background
We’re helping real estate agents give buyers and renters the whole picture of a home’s energy use, comfort and affordability.

Transforming the industry for the better

The training program is the result of a year-long engagement with industry leaders, including CEOs, agents and franchise leaders, who helped shape the format and content. It covers how the ratings system works, how to access information about a property’s energy efficiency, the energy demand from appliances and renewable energy features, and how to answer buyers’ common questions. 

The program provides agents with clear explanations, practical tools and real-world examples. These help them to understand and use Home Energy Ratings effectively in their work, assist their clients and buyers, and become more successful agents. The national pilot program has met with approval from participants.  

Handyman working on large elevated window
The rating system assesses a home’s orientation, layout, construction method and materials, lighting, heating, cooling and appliances, to tell you how energy efficient the home is.

"We know that some homes just feel ‘better’ and now we can point to the rating and explain why in terms of comfort and cost,” says John Cunningham from Cunninghams Real Estate in Balgowlah. “It’s changed the way I talk to both vendors and buyers.”  

Two ladies and dog at side of home with energy device
By participating in the trial, agents are helping to shape how energy performance is included in the real estate conversation in NSW.

“This is about being future-ready,” says Emily Yip, Director, Community and Home Programs, Department of Climate Change, Energy, the Environment and Water. “We’re proud to be working with industry to make these changes practical and beneficial for everyone.”  

Family with young kids sitting on steps at front of home
Home energy ratings help agents explain why some homes feel better in terms of comfort and cost.

1 M Boseley, 2024, ‘Why so many Australian homes are either too hot or too cold’, The Guardian, 3 July, viewed 27 August 2025, https://www.theguardian.com/news/ng-interactive/2024/jul/03/why-so-many-australian-homes-are-either-too-hot-or-too-cold.

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