How to raise value through energy efficiency

Increasing the energy efficiency star rating of a house by one star has increased its value by three per cent in the Australian Capital Territory, according to a recent study.

Since 1999 homes in the ACT have been given a star rating which is advertised at the point of sale, and now Environment Victoria is encouraging Victorians to do the same based on the results of the Energy Efficiency and House Price in the ACT study.

Environment Victoria sustainable living officer Domenica Settle says investors can reap great returns by improving the energy efficiency of their properties.

"Based on those figures (from the report), if you spent $12,000 on insulation for example, you could increase the value of a $400,000 property to $412,000," she says.

Federal and state government have committed to introducing a similar mandatory disclosure scheme to the ACT nationally which will rate the energy, greenhouse and water efficiency of properties at point of sale and lease.

Environment Victoria's top 10 tips for increasing the energy efficiency of a property are:

1. Install insulation

2. Install a more efficient heating and cooling system

3. Replace electric hot water systems with gas or solar

4. Replace downlights with efficient alternatives

5. Install lined curtains and pelmets

6. Block draughts and seal gaps

7. Install awnings on north and west facing windows

8. Install a water tank

9. Install efficient showerheads

10. Install a dual flush toilet