RECOGNITION
The Proptech Energy Efficiency Standard has been identified in the Australian Home Energy Rating Disclosure Framework document* as a “key market enablement”.
The Framework sets out a national approach to assessing the energy performance of homes and providing energy performance certificates to consumers. It outlines policy parameters for disclosure schemes, which can be adapted and implemented by governments, and gives guidance on the development of a supportive market environment
Statement from Commonwealth and NSW Govt
“We acknowledge the importance of the industry-led initiative the ‘Proptech Energy Efficiency Features Standard’ (the Standard) and how it will support home energy ratings disclosure. The Standard is referenced in the Framework (page 43) and we consider the integration of the Standard into the property marketing environment for new and existing homes as an important complementary activity.
It will enable visibility and drive awareness for energy efficiency information at point of sale or lease. It also supports the development of the right market environment to underpin residential disclosure schemes and energy efficiency interventions.
Greater alignment between the Proptech sector’s “features-based" intervention and the disclosure "ratings-based" intervention (whether mandatory or voluntary) will simplify and enhance transparency of a home’s energy efficiency potential for buyers, renters, investors and real estate agents.
Independent Research confirms that consumers value Key Energy Efficiency Features in property advertising
Proptech Australia and Cecille Weldon were engaged by Commonwealth & NSW Government Department of Climate Change, Energy, the Environment and Water) DCCEEW) to coordinate with key property portal stakeholders REA Group and Domain to collaborate with the independent research company, Scout Design, to test and refine the key communication parameters for disclosing Home Energy Ratings in property advertising. The research also tested consumer responses to visibility of Key Energy Efficiency Features in property advertising data standard (enabled by the Proptech Energy Efficiency Data Standard)
Overall, the results of the testing showed that householders really value visibility of Key Energy Efficiency Features. Additionally, when the Home Energy Rating and Key Energy Efficiency Features were located close together, Key Energy Efficiency Features helped participants contextualise what the Home Energy Rating represented. Respondents were able to make intuitive connections between the rating and the physical features of the home.
Short descriptions of the Key Energy Efficiency Features helped householders to understand the value of these features. The descriptions should be outcome-focussed rather than technical descriptions of how the features work.
Accuracy is critical and incorrectly displayed features erode trust which is a clear confirmation that an industry-led data standard delivers consistency which drives trust across property platforms and experiences.
“The inclusion of Key Energy Efficiency Features was received really, really well by Householders, they really liked how simple and quick it was to find features, related to energy efficiency. It was visual, it was clear, and it helps them scan and assess, what is in a home. The comparison feels much quicker and supports that decision making”
“Householders reported that they have been trying to search for this information in the past. Now that it is, surfaced, in property advertising under the heading “Key Energy Efficiency Features” it definitely makes that experience easier and it will stop them from having to do a lot of that manual searching and piecing together the puzzle”
Where is energy used in the home
The features standard will connect to key energy usage in the home and offer the potential for a more comfortable home all year round.
IDENTIFYING BETTER HOMES
Homes and apartments with features that deliver ongoing affordability and year-round comfort — are less risk
The Property Technology Sector, working together, can play a key role here.
This is a significant opportunity for leadership and impact on offer for the Proptech Industry - to support better transparency and literacy about the right energy efficiency features and deliver better outcomes for our homes and the people who live in them.
This clean up and refining of data sets will then deliver alignment with new financial loan product entering the market[1] that are targeting these new efficiency and comfort property upgrades.
[1] https://www.afr.com/policy/energy-and-climate/cba-wants-to-corner-the-2trn-market-for-household-electrification-20240316-p5fcxg