Voluntary Home Energy Ratings Won’t Drive Retrofits for All, but These Solutions Will

Key Takeaways

• Voluntary ratings exclude renters and low‑income buyers
• Landlords of inefficient homes lack incentive to rate
• Upgrade decisions driven by routines, not economics
• Targeted subsidies and mandatory standards improve equity
• Training women and tradespeople builds trust

Summary

The Australian government will extend the Nationwide Home Energy Rating Scheme (NatHERS) to existing homes in mid‑2026 on a voluntary basis, aiming to inform renters and buyers about energy performance. Researchers from RMIT University surveyed 161 Australians and found that voluntary ratings leave low‑income renters and sellers of inefficient homes in the dark. The study highlights that upgrade decisions are shaped more by daily routines, local market conditions, and trust than by pure economics. It proposes a mixed‑policy model that combines stricter rental standards, targeted subsidies, and skills training to drive equitable retrofits.

Pulse Analysis

Australia’s decision to roll out NatHERS ratings to pre‑2005 homes marks a symbolic step toward greater transparency in the housing market, but the voluntary nature mirrors a global pattern where disclosure alone rarely spurs action. In Europe and New Zealand, mandatory energy‑performance standards for rentals have proven effective at raising baseline efficiency and protecting tenants. By contrast, Australia’s approach relies on market forces that favor well‑maintained, high‑value properties, leaving a large segment of the rental sector untouched and perpetuating energy‑cost burdens for vulnerable households.

RMIT’s qualitative research of 161 Australians uncovers a more nuanced reality: homeowners and renters make retrofit choices based on daily habits, access to skilled trades, and confidence in new technologies, not solely on cost‑benefit calculations. The study found uneven uptake of improvements across regions, mistrust of subsidies, and gendered barriers that limit participation in technical decisions. These findings echo broader socio‑technical literature that stresses the importance of trusted advice, community support, and the physical condition of the dwelling as prerequisites for meaningful energy upgrades.

To translate awareness into action, policymakers must blend voluntary ratings with enforceable measures. Raising rental energy‑performance standards, directing subsidies to low‑income tenants, and incentivising banks to offer greener mortgage rates can create a level playing field. Simultaneously, expanding training programs for women and tradespeople, and establishing one‑stop advisory hubs, will address the trust gap and empower households to navigate complex retrofitting pathways. Such a comprehensive strategy promises not only to cut emissions but also to improve health outcomes and housing affordability across Australia.