Affordable and energy efficient homes – NSW should have both
03/May/2006
“New homes in NSW are at risk of becoming the least affordable and the least energy efficient in Australia if the government abandons it’s policy of improving energy efficiency requirements as a result of its review of BASIX,” Ray Thompson, ICANZ Technical Committee Chairman said today.
“We are calling on the NSW government to confirm its commitment to improve energy efficiency requirements following comments by Premier Iemma (ABC 702 Sydney 2/5/06) stating that energy saving is an important initiative but one of his main priorities is making housing affordable.”
Housing affordability and energy savings measures in new homes are not incompatible. The NSW government has apparently reacted to the erroneous claims of the HIA that BASIX energy efficiency provisions in its present form will cause steep price rises for new homes when new measures are brought in from July 1 this year.
“This is incorrect as has been shown by detailed independent studies of the Australian Building Codes Board, Victorian Government surveys and our own building industry experience ” Mr Thompson said.
Based on the regulatory impact statement conducted for the new national 5 Star Building Code of Australia, which has higher energy savings requirements than the current NSW BASIX, the cost of achieving higher energy efficiency is as little as $400 in new homes. Architects and energy assessors say it need cost nothing more with appropriate and sensible design.
“In contrast to the national building code, estimates of the current DIY BASIX energy requirement could put NSW homes at as little as a 2 Star rating compared to the national BCA 5 Star requirement. Further watering down of BASIX energy efficiency requirements will make NSW homes some of the least energy efficient and least affordable in the country.”
Mr Thompson said it is important not to confuse the higher cost of water savings measures in BASIX with lower cost energy initiatives. “The proposed changes to BASIX will not change the requirements for water management which have been in place for nearly two years. The proposed changes to energy efficiency are all about managing climate change and reducing potential energy blackouts from peak demand. Energy reductions can be achieved in new homes at minimal cost with substantial benefits to householders and the environment.”
“In fact homeowners of energy efficient homes spend less on energy, with the net benefit to household cash flow being positive. This leaves more to pay off the home sooner making new energy efficient homes more affordable, not less. Some banks even offer special loans for more energy efficient homes.”
Survey results in Victoria, where they have had 5 Star energy efficient new homes since 2004, show that costs are low. It has had no impact on housing demand and 90 percent of new homeowners support the initiative. Similar experiences have been found in the USA and Europe where they have even higher stringency levels for new homes in similar climates zones to Australia.
“To suggest abandoning the proposed July 2006 upgrade of energy efficiency provisions in NSW BASIX would not only be highly irresponsible from an environmental perspective, but would make new homes in NSW less affordable and new homeowners less comfortable. I am sure the NSW Government does not really want to oversee a reduction in living standards for new homeowners when both energy efficiency and affordability can both be achieved with simple, sensible building design,” Mr Thompson concluded.
