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Green Loans
Scorecard offers banks and financial institutions an objective and repeatable assessment of the energy efficiency of a home, independent of occupant behaviour. Scorecard assessments and certificates can also be used for assessing proposed renovations or upgrades to a home.
Supported by government-developed software and delivered by experienced and government-accredited assessors, Scorecard details a property's:
- average energy cost as a rating out of 10 stars
- comfort rating, showing how well a home copes with hot and cold weather
- star rating with and without solar power
- efficiency ratings for each of the fixed appliances such as heating, cooling and hot water service
- energy consumption of the fixed appliances over one year
- greenhouse gas emissions for the fixed appliances over one year.
Scorecard assessors can provide before and after upgrade certificates, to verify the impact of changes to the home. They can also produce a Scorecard variation report. The variation report models the impact of proposed renovations or upgrades to a home's energy efficiency star rating, clearly demonstrating the real and measurable benefits of proposed renovations or upgrades.
An increasing number of banks and financial institutions are rewarding their customers with low interest rate 'green housing loans' for energy efficient homes, renovations or upgrades, using Scorecard as a verification criterion. For example: Bank Australia and Gateway Bank. If your bank or financial institution is seeking to use Scorecard and would like more information, please contact the team directly: scorecard @deeca.vic.gov.au
Are you a householder and looking to finance a new energy efficient home, renovations or upgrades? Scorecard can help.
"Clients are saving between $20,000 to $100,000 on their home loans."
"Approximately 60% of my clients are accessing Green Loans through Scorecard assessments. Expert guidance from the Scorecard assessor is critical in helping clients select the right improvements to qualify for the loan."
- Marisa Hoffenberg, mortgage broker
Daniel and Yan's 10 star home
Daniel is a tradesman and Yan is an architect, they recently renovated and extended their family home in the chilly Dandenong Ranges.
Despite their professional experience, their expert Scorecard assessor guided them to make better choices - not more expensive choices. For example, they weren’t considering an all-electric home until their assessor talked it through and they realised how much money they could save each year without sacrificing comfort.
Not only is their upgraded home comfortable and cheaper to run, but they also unlocked even more savings through a green home loan - thanks to their Scorecard certificate.
They achieved:
- energy cost saving of c. $2000 per year
- 0.7% interest rate saving on their home loan
- 10 out of 10 Scorecard rating
- a comfortable family home.
"Because of Scorecard we knew where to spend our money, and it helped us to get that loan"
"To the average person, all of this may have been complete gobbledegook. But the assessor made the process clear."
- Daniel, tradesman and homeowner
A simple energy performance verification solution for existing homes: The Residential Efficiency Scorecard
This article was published in the Customer Owned Banking Association (COBA) industry newsletter, September 2023.
Banks are continuing to shine a light on the need to decarbonise portfolios, with significant progress being made. However, residential loan books present unique challenges, including how to verify the energy efficiency of existing homes, and how to quantify the carbon reduction impacts of energy efficiency upgrades. Considering Australian homes have an average NatHERS rating of only 1.7 out of 10 stars, and residential buildings are responsible for more than 10% of total carbon emissions, this presents a clear decarbonisation opportunity.
Green loans products are a proven way to support and reward homeowners looking to improve the energy efficiency of their homes. They provide a customer-focussed solution to the challenges of rising interest rates and energy costs, making now the time for these products to attract and retain customers. While checklists may appear to be a simple verification option, the requirement for each invoice to be individually checked creates a processing cost-centre for the bank, and a higher documentation load for the customer. A single document verifying the energy efficiency status of the property, such as the government-endorsed national Residential Efficiency Scorecard certificate, will reduce this burden.
So, what is the national Residential Efficiency Scorecard? The Scorecard program enables home energy efficiency experts to verify the fixed features of the home, and provide a government-endorsed Scorecard certificate. The certificate provides a range of information including a star rating out of 10 that reflects the average annual energy cost to run the home - the higher the star rating, the lower the cost. The Residential Efficiency Scorecard is a national program funded by the Federal, State and Territory governments of Australia, and delivered by the Victorian Government. Scorecard Assessors are subject to strict quality assurance including regular auditing. The Scorecard program was rolled out nationally in 2021, with assessors located across Australia.
During a Scorecard assessment an independent Scorecard Assessor visits the home and discusses the customer’s needs, budget and goals, including transitioning the home to all-electric. They assess the features of the home such as wall construction, windows and insulation, and major fixed appliances including hot water, heating and cooling. This data is entered into the Scorecard software tool which rates the home and produces the Scorecard certificate. The Assessor combines the information on the certificate with their expert knowledge to make upgrade recommendations and connect the customer with applicable government rebates and subsidies. Poor upgrade choices are avoided as recommendations are targeted to the specific opportunities and constraints of the home. The assessment process provides the customer with a clear path forward.
The Scorecard program has been designed for scalability, with increased demand for Scorecard assessments able to be met with confidence. Currently there are two Green Loans products utilising Scorecard, leaving space in the market for new entrants. And for banks operating in Victoria, discounted Scorecard assessments are now available through the Victorian Energy Upgrades program.
A key opportunity to decarbonise the residential sector is for householders to take action to improve the energy performance of their homes. Many are keen to do this, but don’t know where to start or who to trust. The Residential Efficiency Scorecard builds trust, provides the customer with answers and a clear decision pathway. Removing barriers to uptake and ensuring accurate and targeted upgrade recommendations translates to 94% of customers taking upgrade action after a Scorecard assessment*.
Want to learn how the simpler approach offered by Scorecard can support the goals of your institution and customers? The Scorecard team welcomes enquiries: scorecard@deeca.vic.gov.au
*Residential Efficiency Scorecard: customer telephone survey, 2023.
Val and Barry's story
Val and Barry were selling their home of 30 years, an energy efficient mud brick home built in the 1980s. To prove their home’s energy credentials, Val and Barry had their home assessed using Scorecard.
The result was an 8-star rating that was used in their open for inspection and marketing. There was so much interest in this new way of marketing, the local paper wrote a front-page article on the house and its features.
Scorecard for Real Estate
Plan your renovation with Scorecard
Scorecard can help when buying
Administration and QA of the Scorecard program
Page last updated: 16/04/25