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Tuesday, November 5, 2024

New energy efficiency standard for ACT rentals

From today, rental homes across the ACT must meet a minimum energy efficiency standard for ceiling insulation.

Rental homes with no ceiling insulation, or insulation rated less than R2, must install or upgrade insulation to R5 level, the level typically used in new builds. Rental homes with ceiling insulation rated at R2 or above will not need to be upgraded as they already meet the requirement.

The regulation commences on Saturday 1 April; a phase-in period extends to 30 November 2026. Rental providers will have nine months from when a new lease is signed for the property to comply with the standard (unless they have an exemption).

Rental providers must state in all rental advertisements and new residential tenancy agreements whether their property complies with the minimum standard.

Shane Rattenbury, ACT Minister for Water, Energy and Emissions Reduction, said the new regulation will improve living conditions for Canberra renters and help them save money on energy bills.

“Roughly 30 per cent of households in the ACT are renting, and this new regulation will give renters in the ACT assurance that their homes are well insulated and more affordable to heat in winter and cool in summer,” Mr Rattenbury said.

“Up to 35 per cent of heat is lost through the ceiling during colder months in an uninsulated house. This results in higher energy bills, and makes homes uncomfortable to live in. A home’s level of thermal comfort has a direct impact on the health and wellbeing of those living there.”

The ACT Government will also improve energy efficiency for existing Housing ACT properties.

To help rental providers meet the new standard, eligible property owners can access zero interest loans of up to $15,000 under the Sustainable Household Scheme to upgrade insulation.

The regulation requires electrical safety checks. Only trained installers certified by the Energy Efficiency Council can install insulation. All insulation installers and licensed electricians must be trained in asbestos awareness.

The ACT Government has consulted extensively with the insulation industry to ensure they are ready, Mr Rattenbury said. This includes the four-year phase-in period. The Master Builders Association and the Canberra Institute of Technology will train more insulation providers.

“This means that we are building capacity within the industry while simultaneously avoiding a significant demand spike for insulation materials and installers,” Mr Rattenbury said.

“Whether you currently live in a rental property, or you own one, I encourage you to learn more about the new regulation and what rights or obligations you may have under the new standard.”

To find out more about the legislation, visit the ACT Government’s Justice and Community Safety website.

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