Would you want to buy or rent a G-grade home?
With a proposed Energy Star-like label, you should be able to shop around for a warm house with low power bills and emissions. But, writes Olivia Wannan, our overheated property market could drown out the effect.
HOMEBUYERS and renters should be able to use a proposed Energy Star-like labelling for houses to shop around for a warmer and drier home.
But our shortage of houses for sale and rent might thwart the effect of the new government scheme, experts warn.
Labour outlined its plans to introduce energy performance certificates in this year’s election campaign. It would give people a simplified understanding of what they’ll spend each year heating and cooling the house. If this boosts the energy efficiency of the average home, it could cut the country’s carbon footprint.
The idea has already been introduced in Canberra, the UK and EU. Labour said it planned to first introduce the requirement on homes for sale.
Casimir MacGregor, a senior scientist at building research institute Branz, said overseas certificates typically require a visual inspection of features, such as insulation and windows.
This results in a short report and an energy efficiency grade, plus tips for improvements. Most schemes use an A (very efficient) to G (very poor) scale – some also translate the energy usage into a carbon footprint.
The Government has estimated an inspection could cost about $120. The NZ Green Building Council thinks it’s more likely to cost between $150 and $450.
MacGregor said home energy labels – which Branz is investigating – could help people understand the importance of a warm, dry and healthy home.
‘‘You want to make sure that if you’re buying a home it’s not going to be amoney pit… Often
there’s a gap between the way a home is designed and the way they’re performing.’’
By aggregating assessment data, the Government will get a better understanding of the performance of our houses.
MacGregor thought the scheme would move to rentals. ‘‘Often rental homes are some of
the more poor-performing buildings in our stock, so it makes sense to start with the bad ones.’’
He also wants the information easily accessible to buyers. ‘‘If people aren’t forced to show it, then people are less inclined to ask for it or know about it.’’
But, he warned, our tight housing market could limit the scheme’s effect. ‘‘When people are buying and selling a home, energy is only one factor of many. Energy performance certificates are only one part of the solution, not the whole solution.’’
Economist Shamubeel Eaqub agreed house-sellers held the power. ‘‘There is very little choice relative to what buyers want to buy – whether it’s for investment purposes, or to live in, or to rent.’’
He said certificates are a good idea, helping buyers understand the energy needs of the house. ‘‘Those things need to be mandated. Also it takes time for people to learn the benefits and the issues with the certification regimes. We’ve seen that with the star ratings on our appliances.’’
Andrew Eagles, of the NZ Green Building Council, said the rating and assessment could help buyers renovate. ‘‘You’re going to look at homes and you see the
You want to make sure that if you’re buying a home it’s not going to be a money pit… Often there’s a gap between the way a home is designed and the way they’re performing.’ CASIMIR MACGREGOR
energy performance is a D. A year later, you go to do some work on the home and you think – how could I get from a D to a C?’’
Overseas, research had found energy performance certificates influenced between 12 and 37 per cent of homeowners to make energy efficiency improvements. Highly rated houses also fetched higher prices. In a country where up to 40 per cent of houses are damp and mouldy, people also ‘‘deserve to know’’ how snug their home is, Eagles said.
The assessments will bring multiple benefits, beyond lower energy bills, he said. ‘‘They have the potential to improve health and lower carbon.’’
About 20 per cent of the country’s electricity is produced by burning natural gas and coal. Fossil fuels are often used when demand peaks – typically driven during the winter by heating, lighting and cooking.
Sustainable Business Council’s executive director Mike Burrell said UK certificates do ‘‘a great job’’ providing consumer-friendly information, including the annual estimated energy bills and broken into lighting, heating and hot water costs. In a recent briefing to the Government, his organisation suggested the first 20,000 assessments could be funded by taxpayers to build ‘‘a critical mass’’.
He said there’s power in drawing attention to properties’ energy performance. ‘‘You can have your E-rated house, but do you think you’ll get a lot of people going there when they know it’s E-rated? I think there will be amarket response.’’