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FAQ's

What is energy efficiency?

Energy efficiency means achieving the same level of comfort and performance while using less energy and resources, such as electricity, gas, and water.

In buildings, this involves designing and selecting building elements and systems so that heating, cooling, lighting, ventilation, and hot water operate efficiently without unnecessary energy loss. An energy-efficient building performs better, costs less to operate, and provides improved comfort for occupants.

What is the largest consumer of energy in residential and commercial buildings?

In Australian buildings, the largest energy consumer is typically heating and cooling, including air-conditioning systems.

Building design decisions—such as insulation levels, glazing, orientation, shading, and airtightness—have a significant impact on how much energy is required to maintain comfortable indoor temperatures.

Why is energy efficiency compliance and a 7-star rating required?

Energy efficiency requirements are mandated under the National Construction Code (NCC) and relevant state regulations.

  • Residential buildings (Class 1):
    A minimum 7-star NatHERS energy rating, plus a Whole-of-Home (WoH) assessment, is required to obtain a building permit in Victoria for designs commenced on or after 1 May 2024.

  • Commercial buildings (Classes 2–9):
    A Section J (Part J) compliance report is required to obtain a building permit.

Without the appropriate energy efficiency compliance documentation, a Registered Building Surveyor cannot issue a building permit.

What is FirstRate 5?

FirstRate 5 is accredited NatHERS software used to assess and rate the thermal performance of residential buildings.

It evaluates factors including:

  • Building orientation

  • Glazing and window performance

  • Insulation levels

  • Building fabric and construction materials

  • Floor area and layout

FirstRate 5 is generally used for:

  • New residential buildings

  • Alterations or extensions where the extension is greater than 50% of the existing floor area (in which case the whole dwelling is assessed)

Only accredited energy assessors can use FirstRate 5.

At Efficient Energy Choices, our accredited consultants focus on design optimisation, helping projects achieve the required 7-star rating through smart, cost-effective solutions—often without unnecessary upgrades or expensive materials. Thousands of dwellings, including single homes, townhouses, and unit developments, have been successfully assessed.

What is required to obtain an energy report?

To prepare an energy efficiency assessment, we typically require:

  • Architectural drawings (PDF format preferred), including:

    • Floor plans

    • Elevations

    • Sections (if available)

    • Construction details

    • Window and glazing schedules

    • Material specifications

These documents allow us to assess compliance for new buildings, extensions, or fit-outs and provide the appropriate compliance report.

What is the minimum energy efficiency requirement for residential buildings?

In Victoria, the minimum requirement is:

  • 7-star NatHERS thermal performance rating, and

  • Whole-of-Home (WoH) assessment

This applies to residential designs commenced on or after 1 May 2024.

When did the 7-star energy efficiency requirement commence?

In Victoria:

  • 7-star NatHERS + WoH applies to designs commenced on or after 1 May 2024

  • Designs completed prior to this date may still be assessed under the 6-star requirements

Other states such as Queensland, ACT, and South Australia adopted similar higher standards earlier.

Is a rainwater tank required, and is it included in the energy rating report?

A rainwater tank is not included in the NatHERS energy rating assessment.

As of 1 May 2024, Victorian residential buildings must comply with:

  • 7-star NatHERS, plus

  • Whole-of-Home (WoH) assessment

The WoH assessment considers:

  • Hot water systems

  • Heating and cooling systems

  • Lighting

  • Cooking appliances

  • Pool and spa equipment (if applicable)

What is required for alterations or extensions to residential buildings?

For alterations or extensions less than 50% of the existing floor area, compliance can be achieved through:

  • NatHERS, or

  • NCC Part 13 Deemed-to-Satisfy (DTS) provisions

This approach assesses only the altered or extended portion of the building and typically covers:

  • Roof and wall insulation

  • Roof lights

  • External glazing

  • Building sealing

  • Air movement

  • Services

The appropriate pathway depends on project scope and the Building Surveyor’s requirements.

What is the best building orientation for energy efficiency?

Optimal orientation depends on climate zone:

Southern Australia (heating-dominated climates, e.g. Victoria, Tasmania):

  • Living areas facing north

  • Bedrooms and kitchens facing east

  • Utility areas and garages facing south or west

Northern and warmer climates (cooling-dominated):

  • Living areas facing south

  • Bedrooms and kitchens facing east

  • Utility areas and garages facing north or west

Correct orientation improves passive heating and cooling, reducing reliance on mechanical systems.

What is Low-E (energy-efficient) glazing?

Low-E (low emissivity) glazing is glass with a specialised coating that reduces heat transfer through windows.

It helps:

  • Retain heat indoors during winter

  • Reduce heat gain during summer

  • Improve overall thermal performance

There are two main types:

  • Hard-coat (pyrolytic) – moderate performance

  • Soft-coat (sputtered) – high performance

Low-E glazing is increasingly common in both residential and commercial buildings to meet modern energy efficiency standards.

What is Section J (Part J) compliance?

Section J (Part J) of the National Construction Code sets minimum energy efficiency requirements for commercial buildings (Classes 2–9).

It typically assesses:

  • Building fabric and insulation

  • External glazing

  • Building sealing

  • HVAC and ventilation systems

  • Lighting and power

  • Hot water systems

  • Energy monitoring and on-site energy generation

Section J compliance is mandatory for new commercial buildings and many alterations, and is required to obtain a building permit.

Efficient Energy Choices provides Section J assessments across a wide range of building types, including offices, medical centres, schools, retail, hospitality, industrial buildings, and multi-unit developments, with a focus on practical, cost-effective compliance solutions.

What does ESD stand for?

ESD stands for Environmental Sustainable Design.

In the built environment, ESD refers to the integration of sustainability principles into building design to improve energy efficiency, water efficiency, indoor environmental quality, and overall building performance across a building’s life cycle.

What is an ESD report?

An ESD report is a formal document that demonstrates how a development meets sustainability and environmental performance requirements.

ESD reports are commonly required by local councils as part of the planning permit process, particularly for multi-unit residential, commercial, and mixed-use developments.

When is an ESD report required?

An ESD report is typically required for:

  • Multi-residential developments

  • Commercial and mixed-use buildings

  • Developments subject to council sustainability policies

  • Planning permit applications with environmental conditions

Requirements vary between councils, so early advice is recommended to avoid redesigns or delays.

What does an ESD consultant do?

An ESD consultant provides specialist advice to improve building sustainability and performance while ensuring compliance with planning and building regulations.

This includes:

  • Preparing ESD strategies and reports

  • Advising on energy and water efficiency measures

  • Supporting planning and permit approvals

  • Coordinating with architects, engineers, and councils

  • Identifying practical and cost-effective sustainability solutions

What areas are covered in an ESD assessment?

An ESD assessment may cover:

  • Energy efficiency and thermal performance

  • Water efficiency and stormwater management

  • Indoor environmental quality (air quality, daylight, thermal comfort, acoustics)

  • Materials selection and embodied carbon

  • Waste management

  • Building services efficiency

  • Climate resilience and long-term performance

The scope depends on council requirements and project type.

Is ESD the same as an energy rating?

No. ESD is broader than an energy rating.

An energy rating (such as NatHERS) focuses primarily on the thermal performance of a building, whereas ESD considers the overall sustainability of a development, including energy, water, materials, indoor environment quality, and long-term operational impacts.

Most projects require both.

Can ESD improve building performance and reduce costs?

Yes. When considered early in the design process, ESD can:

  • Improve thermal comfort and building performance

  • Reduce energy and water consumption

  • Lower long-term operating costs

  • Minimise the need for costly design changes later

Well-planned ESD strategies aim to deliver efficient outcomes without unnecessary construction costs.

Does ESD apply to both residential and commercial buildings?

Yes. ESD requirements can apply to:

  • Multi-residential developments

  • Commercial buildings

  • Mixed-use developments

  • Educational, healthcare, and community buildings

The level of assessment depends on the size, use, and planning controls of the development.

When should an ESD consultant be engaged?

An ESD consultant should ideally be engaged early in the design phase, before lodging a planning application.

Early involvement allows sustainability measures to be integrated efficiently into the design, rather than added later at higher cost.

Do you provide ESD consulting services?

Yes. Efficient Energy Choices provides ESD and sustainability consulting services for residential and commercial projects.

We work with homeowners, builders, architects, developers, and councils to deliver compliant, practical, and cost-effective sustainability solutions.

What is BASIX?

BASIX stands for Building Sustainability Index.

It is a New South Wales (NSW) planning requirement that ensures residential developments meet minimum standards for energy efficiency, water efficiency, and thermal comfort.

BASIX applies to residential developments in NSW and is required as part of the development approval process.

When is BASIX required?

BASIX is required for:

  • New residential dwellings in NSW

  • Alterations and additions where the value of works exceeds the BASIX threshold

  • Multi-unit residential developments

A valid BASIX Certificate must be submitted with a Development Application (DA) or Complying Development Certificate (CDC).