Threatening to pass the $172 cost onto homeowners, the new green star rating scheme has met opposition from the Real Estate Institute of South Australia.
The new greenhouse gas and water efficiency audit scheme will force homeowners to pay $172 for audits before they can sell their houses or place them for rent.
Disclosure of green star rating upon sale or rental of a real estate property is compulsory under the federal law.
According to South Australia Real Estate Institute, the greenhouse gas and water audits that go along the scheme will aggravate the burden already carried by buyers and renters.
On the other hand, state energy minister Michael O’Brien said the new green star rating will raise the value of people’s homes while helping to save the environment and cut household bills.
“There will be no return to cheap power as we have seen in the past few decades,” O’Brien said.
According to O’Brien, consumers nowadays have higher appetite to know the efficiency of their houses amid increases in power, gas, and electricity prices.
“The fact that 90,000 people, compared to the target of 9000, took up the solar power rebates as a way of bringing their electricity prices down points to the fact that people are energy savvy now,” he added.
The green star audits would be conducted by private companies on houses, with O’Brien expecting the real estate agents “to use the stars as a valuable marketing tool.”
“They already have it (green stars) set up in the ACT (Australian Capital Territory), and their saying has changed from `location, location, location’ to `location, location, star rating’,” O’Brien said.
Under the proposals submitted to the Energy Efficiency Building Information Committee, the new scheme could have increased the cost to $750. But the state government trashed the proposal and chose to consider only the cheaper scheme.
The federal government is expected to publish the report next month several discussions over the merits of using the new green star rating.