A second small home on your block can solve a lot of problems at once. Room for ageing parents close by but If you are building a new home in Shepparton or anywhere across regional Victoria, you have probably heard about the 7-star standard. The good news is that an energy-efficient home in regional Victoria is more comfortable, cheaper to run, and now the baseline rather than an upgrade. The better news is that hitting the standard does not have to cost a fortune if you design for it from the start.
Here is what the 7-star standard actually means, in plain English, and how it shapes a smart new build in the Goulburn Valley.
What the 7-star standard is
Since 1 May 2024, all new homes in Victoria must meet a minimum 7-star energy rating under the Nationwide House Energy Rating Scheme, up from the old 6-star minimum that had stood for over a decade. New homes also need to meet a Whole-of-Home score, which in Victoria is a minimum of 60.
In practice there are two parts to this:
- The 7-star thermal rating measures the building shell itself, how well your home holds heat in winter and keeps it out in summer, through things like insulation, glazing and orientation.
- The Whole-of-Home score looks at the fixed appliances running inside, such as heating, cooling and hot water, and how efficiently the whole household uses energy. Solar can count toward this score.
You need to pass both. One rates the container, the other rates what runs inside it.
Why it matters in the Goulburn Valley
Shepparton gets hot summers and genuinely cold winters, so a leaky, poorly designed home works hard, and costs a lot, to stay comfortable. A 7-star home flips that. Better insulation, smarter glazing and good orientation mean the home stays comfortable with far less heating and cooling.
The savings are real. Analysis for the new standard found the average Victorian household saves at least a few hundred dollars a year, and independent research found all-electric homes can save four figures annually compared with older builds. Over the decades you own the home, that adds up to a serious sum.
What it means for your design
Reaching 7 stars is mostly about getting the basics right early:
- Orientation. Positioning living areas to capture winter sun and avoid harsh summer heat is free if you plan for it and expensive to fix later.
- Insulation. Good insulation in the roof, walls and floor does much of the heavy lifting.
- Glazing. Most 7-star homes use high-performance windows to some degree, with the amount depending on orientation.
- Sealing. Reducing draughts and air leaks keeps the conditioned air where you want it.
- Efficient systems. Heat-pump hot water, efficient heating and cooling, and solar all help the Whole-of-Home score.
The key point is that good design, considered early, hits 7 stars without big added costs or exotic materials. The expensive way is to design a home first and then try to bolt efficiency on at the end.
Does it cost more to build?
A little, but less than most people fear. When efficiency is planned from the concept stage, the additional upfront cost over an old 6-star home is generally modest. And it is an upfront cost that pays itself back through lower energy bills, year after year, while also making the home more comfortable to live in and more appealing to future buyers.
There is also stability worth knowing about. There is no imminent jump to 8 stars. The 7-star framework is set to remain the standard for the foreseeable future, so a home built well to 7 stars today is not about to be left behind.
The bottom line for your build
The 7-star standard is not red tape to work around. It is a baseline that, handled well, gives you a home that is cheaper to run and nicer to live in. The difference between a home that just scrapes through and one that is genuinely comfortable comes down to a builder who designs for efficiency from day one, not as an afterthought.
Roweanne Builders builds energy-efficient homes across Shepparton and the Goulburn Valley, designing for our local climate so your home is comfortable in both the summer heat and the winter cold, with running costs to match.
FAQs
1. Is the 7-star energy rating mandatory in Victoria?
Yes. Since 1 May 2024, all new homes in Victoria must meet a minimum 7-star thermal rating plus a Whole-of-Home score of at least 60.
2. Does a 7-star home cost much more to build?
When efficiency is designed in from the start, the extra upfront cost is generally modest, and it pays back through lower energy bills over time. Designing the home first and adding efficiency later is what gets expensive.
3. Will the standard rise to 8 stars soon?
Not in the near term. The 7-star and Whole-of-Home requirements are set to remain in place for the foreseeable future, so a well-built 7-star home today is a sound long-term investment.