Login
ISCOVER
The non-major has become the first lender to join a trial that will see the energy rating scheme extended beyond new builds.
ING has become the first lender to join a trial of extending the Nationwide House Energy Rating Scheme (NatHERS) to existing homes.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Announced by Assistant Minister for Climate Change, Josh Wilson, on Tuesday (25 February), the trial reportedly comes with a view to extend the scheme beyond new builds from mid-2025.
Currently, NatHERS provides a standardised rating of the energy efficiency of new homes on the basis of design, materials, construction, fixed appliances, and on-site energy generation and storage.
The program gives new homes an energy rating between 0 and 10 stars, with most jurisdictions setting 7 stars as the benchmark for new builds.
But the extended NatHERS would apply this rating to existing builds, with around 70 per cent of Australia’s 11 million existing homes estimated to have a 3-star or lower rating.
ING is the first lender to be brought into the trial.
From mid-February 2025, select customers applying to refinance or top up their mortgage will be invited to take part.
The trial will be conducted in collaboration with the Australian government, the Commonwealth Scientific and Industrial Research Organisation (CSIRO), and valuers including Herron Todd White and Opteon.
George Thompson, ING head of home loans, said household emissions are a major contributor to Australia’s carbon footprint.
“At ING we’re committed to reducing carbon emissions and that’s why we’re thrilled to be the first bank in Australia to participate in the NatHERS trial for existing houses,” Thompson said.
“We see this trial as a giant leap forward in helping to remove the complexities and confusion that can come with retrofitting your home. With the knowledge gained through this trial customers will have a better indication of what home improvements to prioritise to deliver the best energy efficiency and cost outcomes.”
Speaking to The Adviser, Thompson added the trial could potentially provide opportunities for brokers.
“This trial aims to help homeowners better understand the energy performance of their homes, so they can make more informed choices about how to make their homes more energy efficient – something customers have expressed a desire for,” Thompson said.
“It also gives brokers a great opportunity to connect with sustainability-focused customers and arm them with knowledge about retrofitting their homes.
“We're really pleased to be working with the Government to help home energy efficiency become more accessible to Australians.”
The Assistant Minister for Climate Change, Josh Wilson, said the government wanted to empower Australians to take control of their home energy use and be able to make informed decisions about upgrades and appliances.
“Housing accounts for about 25 per cent of electricity use and more than 10 per cent of emissions, which is why improving home energy efficiency is a key element of the Albanese Government’s comprehensive plan to reach net zero by 2050,” Wilson said.
“Extending the long-standing and trusted NatHERS to existing homes will give Australians who live in older residences the opportunity to improve the energy efficiency and climate resilience of their homes – to reduce energy costs, improve household health and comfort, while also helping to reduce emissions.”
Energy-efficient solutions
ING has been a frequent innovator in the green finance space, having announced a Home Energy Helper offering late last year.
The offering sees ING customers able to source quotes from accredited green energy installers, learn what rebates they qualify for, assess the impact of renovations on energy bills and household emissions, and access a new Green Upgrade Loan (if they already have an ING home loan).
Under a new partnership with BOOM! Power, ING customers are also able to identify whether they could make cost and emissions savings by retrofitting their homes with green upgrades.
Speaking of the new green offerings, ING Australia CEO Melanie Evans said: “Household emissions are one of the biggest contributors to Australia’s carbon footprint, which is why ING, together with BOOM! Power, are helping customers to make improvements to their home to try to reduce their household emissions.
“We know that Australians find renovating their home for energy efficiency complex, costly and time consuming. The Home Energy Helper and Green Upgrade Loan aims to remove the complexities and barriers that are stopping people from making their homes more energy efficient.”
[Related: ING set to launch new green loan offering]
JOIN THE DISCUSSION