New homes in NSW will be greener and large office buildings will have to show an ability to become all-electric-powered under tougher energy-efficiency standards.
Renovations valued at more than $50,000 will also be subject to the new policy that will reduce household energy bills and keep homes naturally cooler in summer and warmer in winter, the NSW government says.
"We need to ensure the places we live, work and stay in are more comfortable, all while we save people money on their power bills and contribute to our net zero target," Planning Minister Anthony Roberts said in a statement on Monday.
The minimum energy standards for new homes will increase from 5.5 stars to seven stars, reducing emissions by an estimated seven to 11 per cent.
People living in high-rise units would save up to $265 a year on energy bills, while those in western Sydney houses could save $1070, the government said.
However, the new rules won't apply to homes in the north coast climate zone and apartment buildings lower than six storeys.
Those exclusions occurred after the energy bill savings under the new policy couldn't offset higher construction costs in those areas.
The Sustainable Buildings State Environmental Planning Policy will also force large commercial developments and state significant developments, such as hospitals, prisons and schools ports, to be able to have all energy needs sourced from renewables by 2035.
Large commercial developments will also need purchase offsets for on site fossil fuel use.
The SEPP comes into effect in October 2023 and will be reviewed every three years.
