NSW is quietly setting the stage for a major change in property marketing: home energy ratings could eventually become mandatory for all homes listed for sale or rent. Starting from mid 2026, sellers and landlords can voluntarily include NatHERS energy ratings in listings, but the government’s policy signals that mandatory disclosure is likely the next step.
How Will NSW Change The Way Homes Are Sold?
While NSW is leading the latest push, the concept isn’t new in Australia. The ACT already requires energy ratings when homes are sold or rented, giving buyers and tenants visibility of likely running costs.
In 2024, Australia’s state, territory and federal energy ministers released a national Home Energy Ratings Disclosure Framework, providing guidance for states on how to introduce energy rating disclosure at the point of sale or lease.
NSW is now testing its own phased rollout and voluntary pilot, which will allow sellers and landlords to include NatHERS ratings in listings from mid 2026, although no official launch date has been confirmed.
The Role Of Real Estate Agents
One initiative aimed at preparing the market is the Energy Smart Agents Program, a pilot training scheme designed to help real estate agents understand and use Home Energy Ratings in property listings.
The NSW government says the program is part of broader efforts to ensure the real estate sector is ready “when NSW transitions to mandatory Home Energy Rating disclosures.”
In theory, this could help buyers and renters better understand a home’s running costs and comfort levels. In practice, the idea of turning sales-focused real estate agents into de-facto energy advisers may raise a few eyebrows. Still, the pilot suggests the government sees agents as a key gateway for bringing energy performance into everyday property conversations.
Linking Ratings to Upgrades
Complementing the ratings rollout, NSW’s Energy Security Safeguard includes programs like the Energy Savings Scheme (ESS) and Peak Demand Reduction Scheme (PDRS). These schemes incentivise energy-efficient upgrades through accredited installers, generating certificates for measures such as heat pump water heaters, efficient air conditioners, and battery systems.
Thousands of upgrades have already been installed — including over 2,800 AC units and 635 hot water heat pumps — demonstrating uptake is happening and providing a practical path for homeowners to boost their energy ratings, which could make their homes more attractive in listings.
What This Means for Homeowners
For NSW homeowners, the message is clear: mid 2026 voluntary disclosure is an opportunity to get ahead. A home with solar panels, efficient heating and cooling, or insulation could stand out in listings, attract more buyers, and signal lower running costs.
Buyers gain visibility of a home’s likely running costs and comfort before signing a contract, while renters can better assess energy efficiency for day-to-day bills. Early upgrades could pay off when mandatory disclosure eventually arrives.
Beyond the numbers, the rollout hints at a broader cultural shift: energy efficiency is moving from a “nice to have” to a standard part of property marketing. Homes with poor ratings may not just cost more to run — they could also be harder to sell. For those considering upgrades, combining improvements with participation in Safeguard programs can reduce costs while boosting market appeal.
Take Action Before Ratings Matter
Whether you’re selling, renting, or buying in NSW, start thinking about your home’s energy efficiency now. Simple steps — adding solar panels, upgrading to a heat pump, improving insulation — can cut bills, increase comfort, and enhance appeal in listings. The voluntary phase deadline gives early movers a chance to get ahead, and when mandatory disclosure eventually arrives, energy-conscious homes could be the ones that stand out.
Want to boost your home’s efficiency before ratings matter? Check out our guide to energy efficiency in a solar home.
About Kim Wainwright
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Here in the ACT, homes are not hard to sell, nor is it difficult to get a tenant (hearsay). But then this could be a supply constrained market.
What does it mean for homeowners? Nothing. Unless there is a cost involved in getting a rating, which will get added to the house price.
The reality is housing is so expensive and in such short supply, people don’t have the luxury of picking and choosing. They find a house in their price range that they don’t hate and they will instantly make an offer. Energy rating won’t be a consideration at all
Andrew, nothing ?
Of course there will be a cost, absolutely somewhere along the line.
Starting voluntary, obviously for those with modern homes that have been looped into the modern efficiency rules for building . . . then to you must have a certificate of the homes standards to sell or rent . . . possibly to ‘your home must be this standard, before it CAN be sold or rented ?
All good for those that can afford high costs of improvements for long term gains, for those retired, low of fixed incomes, struggling with already spirialling cost of living / inflation pressures, etc, this could be the thin edge of the wedge for simply getting average people out of homes.
Haven’t govco bureaucracy, standards, regulations, on top of obscene levels duties, taxes, application fees, compliance, already had a detrimental difference to housing affordability ?
The more govco our 3 levels ‘helps’ with just about anything, things invariably get much more costly, less affordable, and stressful.
I am curious how will the NatHERS ratings will be calculated in real life and how many will be bumped up by the real estate agents.
While there are only few parameters, there will be so many interpretations, that will create more confusion.
For example: roof insulation – checked, but how thorough was installed, what R rating, what type, how old, it is. They all make a big difference in actual heat transfer, aka rating.
Also, if they will become mandatory, it will be a disaster with so many homes’ energy efficiency closer to tents.
NatHERS is an OK rating system for new homes but it doesn’t take into account things like air leakage, quality of installation of insulation or (most importantly) occupant behaviour. I think a MUCH better system would be to require the seller to provide the last two year’s worth of electricity and gas bills. That not only gives a potential buyer a realistic idea of what it might cost to run the house, it also gives people a BIG incentive to be careful with their electricity and gas usage because it could directly affect the value of their property.
But how is that going to work? Last 2 years of electricity bill in term of dollars or usage?
Big dollars maybe because owner did not shop around and got the worst plan ever made in human history.
Big usage but what if the owner is an uber driver with an EV and he does 300km a day? That’s around 40kWh usage daily just for the EV.
Neither would tell you how efficient is the house.