Westpac has become the first major Australian bank to join the federal government’s trial of the Nationwide House Energy Rating Scheme (NatHERS) for existing homes, marking a significant step in efforts to improve energy efficiency nationwide.
The initiative aims to help households reduce energy bills and enhance comfort by identifying cost-effective upgrades through expert assessments.
Launched in 1993 for new builds and major renovations, NatHERS is being expanded to existing homes as part of Australia’s broader climate strategy.
The trial, set for a national rollout by mid-2025, will provide select Westpac customers applying to refinance or top up mortgages with free home energy assessments conducted by certified experts.
Participants will receive a detailed rating certificate outlining:
- A NatHERS Star Rating (0–10) and Home Energy Rating (0–100)
- Annual energy use and emissions estimates
- Renewable energy profiles (if applicable)
- Tailored recommendations for efficiency improvements.
Westpac is collaborating with the Commonwealth Scientific and Industrial Research Organisation (CSIRO), the Department of Climate Change, Energy, the Environment and Water (DCCEEW), and property valuer Opteon to refine assessment tools and processes.
The trial’s insights will inform the scaled-up program, which could enable green loan verification and access to sustainable finance markets.
James Hutton, Westpac’s Managing Director of Mortgages, emphasised the bank’s advocacy for NatHERS expansion: “Our partnership will expand the reach of the program to more Australians seeking to make sustainable choices.
“This trial will give some of our customers the opportunity to be among the first homeowners in Australia to receive a trial NatHERS assessment for an existing home, and assess where energy efficiency improvements could be made to save on power costs.
“This collaboration will not only help to improve energy efficiency, it will also help our customers understand how they can reduce household energy bills,”
The move follows ING’s participation in a similar trial earlier this year, highlighting growing financial sector involvement in Australia’s energy transition.
While trial certificates remain non-regulatory, the program is expected to empower homeowners to prioritise upgrades like insulation or solar investments.
Westpac’s involvement signals a shift toward integrating sustainability into mainstream banking services, with broader industry adoption anticipated in 2025.
