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Energy Efficiency & Smart Home

Energy Efficiency Selections Guide: What Decisions You'll Make & How to Prioritise

What energy decisions you'll make during selections and how to prioritise upgrades on a budget.

7 min read·Compare My Build — Independent Resource· Updated July 2026

Cost estimates only: Any building or upgrade figures in this guide are indicative, not fixed prices or quotes. Costs and inclusions vary by project, supplier, location and time. Confirm current written prices and specifications directly with your builder, suppliers and relevant trades.

Key Takeaways
  • Energy efficiency decisions are spread across multiple selection appointments — electrical, colour, siteworks
  • The most impactful upgrades are insulation, glazing, orientation and hot water system
  • NCC 2022 increased the residential thermal-performance benchmark to 7-star NatHERS, but commencement dates, jurisdictional variations and some permitted compliance pathways differ across states and territories
  • Compare upgrades by comfort, assessed energy performance, current cost and how difficult they are to change later
  • Some energy upgrades (solar, battery) can be added after handover; others (insulation, glazing) cannot

Energy efficiency isn't a single appointment — it's a series of decisions spread across your selections process. Insulation, glazing, hot water, lighting, solar provisions, orientation and sealing all contribute to your home's energy performance. Understanding these decisions, when they're made and how to prioritise them on a budget helps you build a comfortable, efficient home.

The NCC 2022 7-Star Benchmark

NCC 2022 introduced a 7-star NatHERS thermal-performance benchmark, but state and territory variations, dwelling type and alternative compliance pathways matter. If you are considering thermal performance above the minimum that applies to your project, ask your energy assessor which design changes would improve the rating and what those changes would cost. NatHERS star bands are climate-specific, so there is no single national dollar saving or upgrade price per extra star.

Energy Decisions You'll Make During Selections

  • Insulation — ceiling, wall and underfloor R-values; standard vs upgraded insulation
  • Glazing — single vs double glazing; low-E coatings; frame material (aluminium, timber, uPVC)
  • Hot water system — electric, gas, heat pump or solar; tank size; location
  • Lighting — LED vs halogen; downlight quantity and placement; lighting controls
  • Solar provisions — solar-ready provisions (conduit, roof capacity, inverter space) or full solar system
  • Sealing — weather seals, draught proofing, exhaust fan seals
  • Appliances — cooktop (induction vs gas); oven; rangehood
  • Ventilation — exhaust fans, roof ventilation, sub-floor ventilation

How to Prioritise Energy Upgrades

Energy upgrades have different effects on comfort, cost and retrofit difficulty. Compare them against the assessed design and your household priorities:

  • Insulation — confirm what the assessed design requires, then compare any upgrade by climate, comfort benefit and retrofit difficulty
  • Glazing — compare whole-window performance, orientation, climate and acoustic needs; difficult and costly to change after construction
  • Hot water — compare heat-pump and other permitted options using current equipment, tariff, solar and incentive assumptions
  • Solar provisions — roof space, switchboard capacity and cable routes can preserve flexibility for later installation
  • Lighting — compare the actual fitting, control and efficiency specification included by the builder rather than assuming one standard package
  • Solar panels — can be installed during or after the build; compare current itemised quotes, network limits and expected self-consumption
  • Battery storage — compare current after-incentive pricing, tariff, usable capacity, backup features and solar surplus
  • Smart-home automation — many devices can be added later, but concealed wiring or power requirements may be worth planning during construction

Tip

The cheapest time to add energy provisions is during the build. Insulation, double glazing and structural provisions can't be easily added later. Solar panels, batteries and smart home devices can be added after handover — and you can shop around for the best deal. Focus your build budget on the things you can't change later (insulation, glazing, provisions) and add the rest over time.

Climate Considerations

Your climate zone should guide your energy upgrade priorities:

  • Hot climates (QLD, NT, northern WA) — prioritise insulation, shading, light-coloured roof, cross-ventilation, air conditioning efficiency
  • Cold climates (TAS, VIC alpine, ACT) — prioritise insulation, double glazing, draught sealing, passive solar heating
  • Mixed climates (NSW, VIC, SA, southern WA) — balance summer cooling and winter heating; insulation and glazing both matter
  • Humid climates (QLD coast, NT) — prioritise ventilation, dehumidification, ceiling fans, air conditioning
Example Energy Upgrade Costs
UpgradeExample Cost
Ceiling insulation upgrade (R4 to R6)$500–$2,000
Wall insulation upgrade (R2 to R2.5)$1,000–$3,000
Underfloor insulation$1,000–$3,000
Double glazing (whole home)$3,000–$10,000+
Heat pump hot water system$1,500–$4,000
Solar-ready provisions (conduit, capacity)$200–$800
Solar system (6.6kW)$4,000–$8,000
Battery storage (10kWh)$8,000–$15,000+
Real-world examples only. Some items may be included as standard. Costs vary by builder, home size and specification.
Questions to Ask Your Builder
  • Which energy rating does your standard specification achieve — 7 stars or higher?
  • What is included in the standard insulation package, and what R-values are used?
  • Which energy upgrades do you include as standard, and which are charged as upgrades?
  • Can the house plan be rotated or flipped to improve orientation for my block?
  • Do you provide solar-ready and battery-ready provisions, and what do they include?
Common Mistakes to Avoid
  • Assuming all builders include the same energy features as standard — inclusions vary significantly
  • Spending the build budget on solar and batteries while skipping insulation and glazing that can't be added later
  • Choosing upgrades based on marketing claims rather than comfort impact and return on investment
  • Forgetting that some energy decisions (insulation, glazing, orientation) are locked in during construction
Builder Tips
  • Focus your build budget on things you can't change later — insulation, glazing and structural provisions
  • Ask your builder for a written list of standard inclusions versus upgrades before your appointments
  • Prioritise insulation first; it has the best comfort-to-cost ratio of any energy upgrade
  • Plan solar and battery provisions now even if you'll install the hardware after handover

Insulation Upgrade Guide

The most cost-effective energy upgrade — understand R-values and costs.

Read the Guide

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