ACT landlords and their rental investment properties will be required to meet a minimum energy efficiency standard from April 2023 according to new regulations introduced by the ACT Government. In a bid to establish sustainable households, rental homes lacking insulation or insulation rated below R2 must have insulation upgraded to R5. Rental homes with insulation over R2 however won’t require an upgrade. There will be a phase-in period from 1 April 2023 to 30 November 2026 where there will be more leniencies until the government comes down harder from 1 December 2026.
This means that rental providers will have nine months to meet this new standard after a new lease has been signed. Once December 1, 2026 rolls around, it will be the expectation that properties are already in compliance or in the process of complying with the new standard whether a lease has or hasn’t been signed. New properties hitting the market will have 3 months to meet the standard. The new requirement applies for private rentals and public housing properties too, with 40% of rental homes not compliant yet. Rental providers must include details on the property’s compliance in all rental advertisements and residential tenancy agreements from 1 April 2023.
The costs of the new energy efficiency standards don’t come cheap and the Government’s Sustainable Household Scheme seeks to make it easier, according to chief minister and minister for climate action Andrew Barr. “Putting minimum energy efficiency standards in place for rental properties will improve the wellbeing of Canberra renters as well as help reduce their cost of living,” minister Barr said. “We know that upgrades like these can be costly which is why we have programs such as the Sustainable Household Scheme in place to help reduce those costs. Landlords needing to upgrade their rental properties will be able to access a zero-interest loan (of up to $15,000) for insulation from early 2023 under the Scheme.”
Minister for energy and emissions reduction Shane Rattenbury emphasises the importance of renters living in high-quality housing. “Everyone deserves a comfortable, safe, and healthy home, and the new minimum energy efficiency standard for ceiling insulation will help to achieve this,” minister Rattenbury said. “These minimum standards are essential for assisting renters with their quality of life and energy costs, and the phase-in period and no-interest loans will assist rental providers to satisfy the new requirements in a balanced way.”
“In addition to meeting the standard in public housing properties, the ACT Government will invest in public housing energy efficiency improvements. This will include replacing gas appliances (such as hot water and heating and cooling systems) with energy efficient electric alternatives that are cheaper to run and support the ACT’s transition away from gas by 2045.” “Insulation is the most effective and efficient way to quickly improve energy efficiency in rental properties. The Government will continue to examine other energy efficiency measures that could be implemented in future years,” he added.