NCC 2022 Energy Requirements: What You Need to Know

Overview of the NCC 2022 Changes

The National Construction Code (NCC) 2022 introduced the most significant changes to residential energy efficiency requirements in over a decade. Published by the Australian Building Codes Board (ABCB), the NCC sets the minimum standards for building design and construction across Australia. The 2022 edition raised the bar considerably for new homes.

The two headline changes affecting residential construction are:

• An increase in the minimum NatHERS star rating from 6 stars to 7 stars
• The introduction of Whole of Home (WoH) energy provisions

From 6 Stars to 7 Stars

The previous 6-star minimum had been in place since 2010. Over that period, the building industry became very familiar with the requirements, and most standard construction practices were optimised to achieve 6 stars efficiently.

The increase to 7 stars requires measurably better thermal performance of the building envelope. In practical terms, this typically means:

• Higher insulation R-values — particularly in walls and floors, where the previous 6-star standard often allowed minimal insulation
• Better glazing specifications — double glazing is effectively standard in most climate zones to achieve 7 stars, and low-E coatings are increasingly common
• More careful design — window placement, shading, and orientation become more critical at the 7-star level
• Improved airtightness — sealing gaps around windows, doors, and service penetrations

Industry analysis suggests that achieving 7 stars adds approximately $3,000 to $7,000 to the construction cost of a typical new home, depending on the climate zone and design. This cost is typically recovered within 5-10 years through reduced energy bills.

Whole of Home Provisions

Perhaps the more transformative change in NCC 2022 is the introduction of Whole of Home (WoH) energy budget provisions. While the NatHERS star rating focuses exclusively on the thermal envelope (heating and cooling energy), the WoH provisions consider the total energy use of the home, including:

• Heating, ventilation, and air conditioning (HVAC) systems
• Hot water systems
• Lighting
• Swimming pool and spa pumps
• Renewable energy generation (solar PV)

The WoH assessment sets an energy budget for the home, measured in MJ/m²/year. The home's fixed appliances must demonstrate that their total energy consumption stays within this budget. Rooftop solar PV can offset some of the energy use, providing a credit against the budget.

This approach encourages homeowners and builders to think holistically about energy efficiency, rather than focusing solely on the building shell. A home with an efficient heat pump hot water system and LED lighting throughout will find it much easier to meet the WoH budget than one with a conventional electric storage hot water system and older lighting.

State and Territory Adoption

While the NCC is a national code, each state and territory adopts it through their own legislation, which means adoption timelines can vary. The NCC 2022 provisions took effect on 1 October 2023 as the national adoption date, but some jurisdictions had transitional arrangements:

• Victoria — Adopted the 7-star requirement from 1 May 2024
• New South Wales — Adopted from 1 October 2023, with BASIX integration
• Queensland — Adopted from 1 October 2023
• South Australia — Adopted from 1 October 2023
• Western Australia — Adopted from 1 May 2024
• Tasmania, ACT, NT — Generally adopted from 1 October 2023, with some local variations

It is important to check with your local council or building surveyor to confirm exactly which version of the NCC applies to your project, particularly if you lodged your building permit application during a transitional period.

What This Means for Builders

For builders, the NCC 2022 changes require updated standard specifications and potentially new supplier relationships. Key considerations include:

• Reviewing standard wall, ceiling, and floor insulation specifications to ensure they can achieve 7 stars
• Establishing relationships with glazing suppliers who can provide double-glazed and low-E window products
• Engaging NatHERS assessors earlier in the design process to avoid costly redesigns
• Understanding the WoH requirements and how appliance selection affects compliance

What This Means for Homeowners

For homeowners planning to build, the NCC 2022 changes are broadly positive. While construction costs are slightly higher, the benefits include:

• Lower energy bills from day one
• Greater comfort with more stable indoor temperatures
• Higher resale value as energy efficiency becomes a more prominent factor in property valuation
• Future-proofing against rising energy costs and potential further increases in standards

If you are in the planning stages of a new build, discuss the 7-star requirement with your designer and NatHERS assessor early. It is far more cost-effective to design for 7 stars from the outset than to retrofit improvements after the design is finalised.