Minimum energy efficiency standards for rental homes
A regulation establishing a new minimum energy efficiency standard for ceiling insulation in rental homes commenced on 1 April 2023.
Rental properties with existing ceiling insulation below an R-value of R2, need to upgrade the ceiling insulation to a minimum R-value of R5. The higher the R-value the better the thermal performance of the insulation. R5 is what is typically installed in new homes.
Rental homes with ceiling insulation rated at R2 or above will not require any upgrades as they will already meet the minimum standard. It is estimated that over 60% of rental properties are already compliant with the standard.
The standard will apply to both private and public rental properties.
The requirement to meet the new minimum standard will be phased in over time, with most properties expected to be compliant from 30 November 2026 (unless they have a valid exemption).
From 1 April 2023 rental providers must disclose whether the property meets the standard or has an exemption when advertising the property and when entering the tenancy agreement.