An enormous opportunity exists to significantly reduce Victoria’s carbon emissions.

At present new dwellings in Victoria must comply with the five-star standard. This requires a five-star energy rating for the building fabric, water-saving measures, and the installation of either a rainwater tank or solar hot-water service.

New dwellings comprise a small percentage of the housing stock, therefore the challenge is how to lift the energy rating of existing houses.

In Victoria a range of subsidies are available for property owners to install energy and water-saving devices. The Federal Government’s program to insulate 2.7 million homes will provide further impetus to the overall goal of carbon reduction.

The real challenge is implementing a reporting system that will allow prospective buyers to easily understand and compare the energy efficiencies of different properties. Currently, before a buyer signs a contract of sale, the vendor must provide a statement (often referred to as a Section 32) of matters affecting the land to be sold.

The Real Estate Institute of Victoria is working with a range of stakeholders to determine whether Section 32 should contain environmental ratings and what standards the ratings should be set at, or if another means for reporting a house’s environmental standard can be introduced.

It’s only a matter of time until we move to a more transparent system of energy rating for residential houses.