Residential Performance
Clear guidance on the 7 Star NatHERS benchmark, when it applies and what the required thermal performance outcome may mean for the design of a new home.
For homeowners, architects, building designers and builders reviewing NatHERS targets, design decisions and the pathway towards a compliant 7 Star result.
Send Your Plans for ReviewIn Brief
A 7 Star NatHERS rating is a modelled thermal-performance outcome under Australia’s Nationwide House Energy Rating Scheme. It is not a separate assessment system: NatHERS is the rating framework, while seven stars identifies a result within the scheme’s 0-to-10-star thermal rating scale.
For NatHERS-based compliance under NCC 2022, new houses are generally assessed against a minimum 7 Star result. Apartment buildings are generally assessed against a 7 Star average, with no individual apartment below 6 Stars. The requirement applying to a particular project may still depend on the jurisdiction, building type, compliance pathway and any relevant transitional provisions.
The rating estimates the heating and cooling energy required to maintain thermal comfort. It is influenced by the dwelling’s climate, orientation, glazing, shading, insulation, thermal mass, air movement and construction details. It does not assess the wider energy performance of fixed appliances, solar systems or batteries, which sit within the separate Whole of Home assessment.
For project teams, the 7 Star benchmark can influence design decisions well before approval and final documentation. Where a proposed dwelling falls short, targeted changes to the building fabric may be required. For broader information about NatHERS modelling, certification and assessment pathways, see the NatHERS Knowledge Hub.
The rating represents the modelled heating and cooling demand of the dwelling in its particular climate and location.
The applicable target depends on the dwelling type, jurisdiction, chosen compliance pathway and relevant project provisions.
The thermal star rating does not include fixed appliances, onsite solar generation or battery storage assessed under Whole of Home.
Knowledge Navigation
Use this guide to understand what a 7 Star NatHERS outcome means, when the benchmark may apply and which design factors can influence whether a new dwelling reaches the required thermal-performance result.
Rating Outcome
Understand where seven stars sits within the NatHERS rating scale and what the result indicates about modelled heating and cooling demand.
Benchmark Application
Review how dwelling type, jurisdiction, compliance pathway and transitional provisions can determine the target applying to a project.
Design Factors
See how climate, orientation, glazing, shading, insulation, thermal mass and construction details can affect the modelled outcome.
Design Improvement
Explore how early modelling and coordinated changes to the dwelling fabric can help improve a result that initially falls below the target.
Benchmark Application
The 7 Star benchmark is relevant to many new residential projects assessed using NatHERS, but the requirement applying to a particular dwelling depends on its location, building classification, approval pathway and applicable regulatory provisions.
Under the NCC 2022 residential energy-efficiency provisions, the minimum thermal-performance requirement is generally equivalent to 7 Stars on the NatHERS scale. Where a new house uses a NatHERS-based compliance pathway, the dwelling will commonly need to achieve a minimum 7 Star thermal rating.
For apartment buildings assessed through NatHERS, the requirement is generally applied across the building rather than as a single identical target for every apartment. The apartments must commonly achieve an average rating of at least 7 Stars, with no individual apartment rated below 6 Stars.
The National Construction Code is adopted and administered by individual states and territories. Commencement dates, local variations, concessions and transitional arrangements can therefore affect whether the NCC 2022 benchmark applies to a particular approval or project stage.
A 7 Star NatHERS certificate is also not the only possible way to address residential energy-efficiency requirements. The appropriate pathway should be confirmed against the project location, dwelling type and approval requirements before the design is finalised.
Class 1 Dwellings
A new house using the NatHERS pathway will generally need to demonstrate a minimum 7 Star thermal-performance result.
Class 2 Dwellings
Apartment developments will generally need a building-wide average of 7 Stars, with no individual apartment below 6 Stars.
Project Review
Jurisdiction, approval date, building type and the selected compliance method should be checked before treating 7 Star as the project target.
New residential development in New South Wales is also subject to BASIX requirements. NatHERS modelling may support the thermal-performance component of a BASIX assessment, but the two should not be treated as interchangeable systems. See the BASIX service guide for the wider NSW submission pathway.
Design Factors
A 7 Star result is rarely created by one product or specification alone. It usually depends on how the dwelling form, building fabric, glazing and climate-responsive design decisions work together.
NatHERS software models the dwelling as a complete thermal system. A design decision that improves performance in one room, orientation or season may have a different effect elsewhere in the home. The rating therefore reflects the combined performance of the documented design rather than a simple checklist of compliant materials.
The most appropriate design response also varies by climate. Solar access may be beneficial in a cooler climate but can increase cooling demand where summer heat gain is difficult to control. Glazing, shading, insulation, thermal mass and ventilation openings should therefore be considered in relation to the dwelling’s location, orientation and pattern of use.
Early modelling allows these relationships to be tested while the design remains flexible. Where assessment is delayed until documentation is nearly complete, the available improvements may be narrower, more expensive or more disruptive to the architectural intent.
Site Response
Climate zone, dwelling orientation and the position of living areas influence solar exposure, seasonal heat gain and the heating and cooling loads modelled for the home.
Openings
Window size, orientation, frame type, glass performance and external shading affect heat transfer, solar gain and the ability to control summer exposure.
Building Fabric
Roof, wall and floor systems, insulation levels, construction types and documented thermal breaks influence how quickly heat moves through the dwelling envelope.
Internal Performance
Room layout, conditioned zones, thermal mass, ceiling fans and opportunities for natural ventilation can change how individual spaces perform across the year.
Not necessarily. Double glazing can improve performance, but whether it is required depends on the climate, window area, orientation, shading and the performance of the wider dwelling fabric. A coordinated design response is usually more reliable than treating one product as a universal solution.
Design Improvement
Where an initial NatHERS model falls below the target, the result can often be improved through coordinated changes to the dwelling fabric rather than relying on one product or specification alone.
The most effective pathway begins by identifying which parts of the design are contributing most strongly to heating or cooling demand. This may involve particular orientations, large areas of exposed glazing, insufficient shading, gaps in the insulation strategy or rooms that perform differently from the dwelling as a whole.
Potential improvements should then be tested within the NatHERS model. Depending on the climate and design, this could include refining window size or performance, adjusting shading, improving insulation, reviewing construction systems or reconsidering how rooms and openings respond to solar exposure and natural ventilation.
The strongest solution is not always the option with the highest individual product specification. A more balanced design may achieve the required outcome through several modest changes that preserve daylight, views, amenity, construction practicality and the architectural intent.
Once an improvement pathway has been agreed, the drawings and schedules should be coordinated with the modelled assumptions. Changes made later to glazing, insulation, shading or construction details may affect the rating and can require the design to be reassessed.
Step One
Model the documented design to understand its current rating and identify whether heating demand, cooling demand or particular zones are limiting the result.
Step Two
Compare practical changes to glazing, shading, insulation, orientation response and construction details rather than applying upgrades without modelling their effect.
Step Three
Confirm that the selected improvement strategy is reflected consistently across plans, elevations, sections, window schedules and construction specifications.
Step Four
Reassess the coordinated design before certification so the final NatHERS result reflects the dwelling that is documented and intended to be built.
Testing the 7 Star target during design development allows the project team to compare improvement options before key dimensions, window selections and construction systems are fixed. Later assessment may still identify a pathway, but the available changes can be narrower and more disruptive.
Related Residential Frameworks
These requirements may appear together on a residential project, but they assess different parts of dwelling performance and should not be treated as interchangeable ratings or approval systems.
A 7 Star NatHERS rating relates specifically to the modelled thermal performance of the dwelling fabric. It indicates the expected heating and cooling demand associated with the documented building form, construction, glazing, insulation, shading and climate response.
A Whole of Home assessment extends beyond the thermal star rating to consider the expected energy use of major fixed systems and appliances, together with energy generated or stored onsite. A dwelling can therefore achieve its required thermal star rating while still requiring separate review of its broader Whole of Home outcome.
In New South Wales, BASIX provides the wider residential sustainability assessment and submission framework. Its requirements address water, energy and thermal performance, as well as specified project information relating to construction materials. NatHERS modelling may support the thermal-performance component where the relevant BASIX assessment pathway uses simulation, but a NatHERS certificate does not replace the BASIX submission.
Dwelling Fabric
Assesses the modelled heating and cooling demand associated with the design and thermal performance of the dwelling fabric.
Primary outcome: a thermal star rating from 0 to 10.
Operational Energy
Considers major fixed systems and appliances, together with onsite energy generation and storage, within the broader dwelling energy assessment.
Primary outcome: expected whole-home energy performance.
NSW Submission
Provides the NSW assessment and certification framework for residential water, energy and thermal-performance requirements.
Primary outcome: a BASIX Certificate and project commitments.
Reaching 7 Star does not automatically demonstrate compliance with every residential energy or sustainability requirement. The complete project pathway should be confirmed by considering the thermal rating, Whole of Home requirements and any applicable state-based assessment framework.
Explore the Whole of Home guide or review the BASIX submission pathway.
Benchmark Transition
The move from 6 to 7 Stars increased the expected thermal-performance level for many new homes, but it does not translate into one fixed upgrade or a simple percentage improvement across every project.
Six stars was the minimum NatHERS benchmark associated with earlier residential energy-efficiency provisions. Under the NCC 2022 settings, the thermal-performance stringency for new homes increased to the equivalent of 7 Stars, subject to jurisdictional adoption and the compliance pathway applying to the project.
A 7 Star home will generally have lower modelled heating and cooling demand than a comparable 6 Star home assessed for the same climate. The scale is not linear, however, and the difference between the two ratings cannot be expressed as one universal percentage, energy saving or construction specification.
The design response required to move from 6 to 7 Stars also varies between projects. One dwelling may benefit most from better glazing or external shading, while another may require changes to orientation, insulation, thermal mass, ventilation openings or the relationship between rooms and solar exposure.
An existing 6 Star certificate should therefore be understood in the context of the approval date, applicable code and software settings under which it was produced. It does not automatically establish the target for a new project being assessed under current provisions.
Earlier Benchmark
The thermal-performance benchmark associated with earlier generations of residential energy-efficiency requirements and approvals.
Higher Stringency
The higher thermal-performance outcome now relevant to many new homes assessed under NCC 2022-based provisions.
Project Response
The changes needed to reach the higher result depend on the climate, dwelling geometry, existing specification and causes of heating or cooling demand.
NatHERS star bands represent climate-specific limits on modelled heating and cooling demand. Moving from 6 to 7 Stars therefore requires a project-specific assessment rather than the automatic addition of one material, product or insulation level.
For more detail about certificates and projects assessed under the earlier benchmark, see the 6 Star NatHERS legacy guide.
Queensland Application
Queensland retains a state-specific energy-equivalence pathway that may allow a compliant outdoor living area to contribute towards the regulated 7 Star standard.
Under Queensland Development Code Mandatory Part 4.1, new houses and townhouses must achieve a minimum 7 Star energy-equivalence outcome. This can be demonstrated through a 7 Star building-shell rating or, where the relevant requirements are met, through a combination of a lower NatHERS rating and an approved outdoor living area credit.
For houses and townhouses, a compliant covered outdoor living area may provide a half-star credit. Where the outdoor area also includes qualifying ceiling fans, the available credit may increase to one star. The underlying building shell must still achieve at least 6 Stars.
These credits are used for regulatory energy equivalence only. They do not change the NatHERS rating shown on the dwelling’s certificate. A home with a 6 Star NatHERS certificate and a qualifying one-star outdoor living credit may satisfy the Queensland 7 Star standard, but it remains a 6 Star NatHERS-rated building shell.
For apartment developments, an outdoor living area credit may contribute to the required building-wide average. It cannot be used to reduce an individual apartment below the applicable 6 Star minimum, and the eligibility and calculation of credits should be confirmed for the particular project.
Standard Outcome
The dwelling achieves the Queensland standard directly through a minimum 7 Star thermal-performance rating.
Half-Star Credit
A 6.5 Star building shell may reach the regulated equivalent where the covered outdoor living area satisfies the prescribed criteria.
One-Star Credit
A minimum 6 Star building shell may satisfy the standard where a qualifying outdoor living area and required ceiling-fan provisions provide the full credit.
The Queensland credit supports compliance with the state’s regulated 7 Star energy standard. It should not be added to the certified NatHERS rating or used to describe a 6 Star building shell as having achieved a 7 Star NatHERS rating.
Frequently Asked Questions
A 7 Star NatHERS rating is a modelled thermal-performance outcome within Australia’s Nationwide House Energy Rating Scheme. NatHERS is the wider assessment framework, while seven stars is one result within its 0-to-10-star thermal rating scale.
The result represents the estimated heating and cooling demand of the dwelling in its particular climate. It reflects the combined effect of orientation, construction, insulation, glazing, shading, ventilation assumptions and thermal mass.
Seven stars is the relevant thermal-performance benchmark for many new homes assessed through a NatHERS-based pathway under NCC 2022 settings.
The requirement applying to an individual project may still depend on the state or territory, dwelling type, approval date, transitional provisions and selected compliance pathway. The project requirements should therefore be confirmed before the design is finalised.
Not necessarily. For apartment developments assessed under the relevant NatHERS pathway, the thermal-performance requirement is generally applied across the building.
The apartments will commonly need to achieve an average rating of at least 7 Stars, with no individual apartment below 6 Stars. Local provisions and project-specific requirements should still be confirmed.
The rating represents the modelled heating and cooling energy required to maintain thermal comfort within the dwelling. It assesses how the documented building fabric and design respond to the local climate.
The result is influenced by factors including orientation, dwelling form, glazing, shading, insulation, thermal mass, ventilation assumptions and construction details. For broader information about the assessment framework, see the NatHERS Knowledge Hub.
No. The thermal star rating focuses on the dwelling fabric and its modelled heating and cooling demand.
Fixed appliances, heating and cooling equipment, hot water systems, lighting, solar generation and batteries are considered separately through the Whole of Home assessment.
Not in every case. Double glazing may improve the rating where window heat transfer is limiting performance, but it is not a universal requirement for every 7 Star home.
The appropriate glazing response depends on the climate, orientation, window area, shading and the performance of the wider dwelling fabric. Some homes may reach the benchmark through a coordinated combination of other design measures.
The result can be influenced by climate, orientation, window size and placement, glazing performance, shading, insulation, wall and roof construction, floor type, thermal mass, ventilation and dwelling geometry.
Because NatHERS models the dwelling as a complete thermal system, the strongest pathway is usually a coordinated design response rather than one isolated product or specification change.
Potentially. Queensland retains an energy-equivalence pathway under which a qualifying outdoor living area may contribute towards the regulated 7 Star standard.
A compliant outdoor living area may provide a half-star credit, while an eligible outdoor area with the required ceiling-fan provisions may provide a one-star credit. The underlying building shell must still meet the applicable minimum rating.
The credit supports regulatory compliance but does not change the NatHERS rating shown on the certificate. See the section on Queensland 7 Star energy equivalence.
No. A 7 Star NatHERS result is a modelled thermal-performance outcome, while BASIX is the wider NSW residential sustainability assessment and submission framework.
NatHERS modelling may support the thermal-performance component of a BASIX assessment where the relevant pathway uses simulation. BASIX also addresses broader project requirements, including water and energy commitments. See the BASIX submission guide.
An existing certificate must be considered against the approval date, applicable code, project design and software settings under which it was issued.
A certificate produced for an earlier design or regulatory benchmark may not demonstrate the result required for a current approval. For additional legacy context, see the 6 Star NatHERS guide.
Yes. A dwelling may initially fall below the benchmark where its glazing, insulation, shading, orientation, form or construction details do not provide sufficient thermal performance for the local climate.
The assessor can test targeted changes to identify a practical improvement pathway. This may involve refining glazing, external shading, insulation, window area, ventilation opportunities or construction specifications.
No. A 7 Star rating indicates lower modelled heating and cooling demand than a comparable lower-rated dwelling in the same climate, but it does not predict an individual household’s actual energy bills.
Actual energy use can also be influenced by occupant behaviour, thermostat settings, installed equipment, construction quality, household size, appliance efficiency and onsite solar generation.
The target is best tested while the dwelling form, glazing, shading and construction systems can still be adjusted.
Early modelling gives the design team more opportunity to compare practical improvement options and reduces the risk of substantial changes during final documentation.
Related Reading
Seven Star is one thermal-performance benchmark within the broader NatHERS framework. Continue to the parent NatHERS guide, Whole of Home energy guidance or the BASIX submission pathway relevant to many NSW residential projects.
Parent Knowledge Hub
Explore the wider NatHERS assessment framework, including thermal modelling, dwelling star ratings, certificates and new-home assessment pathways.
Broader Energy Performance
Learn how fixed appliances, hot water, lighting, heating and cooling systems, solar generation and batteries are considered beyond the dwelling-fabric star rating.
NSW Project Context
Understand the wider NSW residential sustainability submission and how NatHERS modelling may support its thermal-performance component where applicable.
Project Review
Send the available residential plans, elevations, specifications and glazing information for review. Certified Energy can assess the proposed dwelling against the relevant 7 Star NatHERS target and identify whether design refinement or further thermal modelling may be required.
Where the design initially falls below the benchmark, early modelling can help identify practical improvements to glazing, insulation, shading, construction and climate response before key project decisions are fixed.
Last reviewed: June 2026. This page is maintained by Certified Energy as part of its NatHERS Knowledge Hub.