An Agreement to Rate is a contract signed by a developer or owner to commit to obtaining a NABERS rating once their building becomes operational.
The Agreement to Rate is to be signed at the design stage of a building, and can be used for multiple NABERS rating types, including:
- Energy
- Water
- Indoor Environment
- Waste
- Embodied Emissions
Why get an Agreement to Rate?
NABERS has created the Agreement to Rate contract to assist local councils and state authorities to develop and implement policy that promotes measurement of building operations. It also allows developers and building owners to meet any policy obligations and commit to improved building performance.
There are several reasons why someone may sign an Agreement to Rate contract:
- Provides a cost-effective alternative to the Commitment Agreement
- Can be used for any rating type
- One application can be used for multiple rating types for the same building
- Simple and fast process with no requirement for modelling during design phase
- Can be used alone or alongside a Commitment Agreement to meet developers’ requirements and obligations
- May result in increased value and reduced environmental impact upon completion and rating
Who can get an Agreement to Rate?
An Agreement to Rate can be signed by owners or developers for all new, or refurbished buildings.
The Agreement to Rate application process
What to do once you have your Agreement to Rate contract
Contact NABERS to confirm the following details:
- The date your Occupancy Certificate is granted
- Any changes of building ownership, applicant details, company details or project details
Get a NABERS performance rating once you have 12 months of data
- Arrange for an Accredited Assessor to carry out a NABERS Performance Rating on the premises when it is ready for its first performance rating – usually after 12-24 months of operation
- The Accredited Assessor will advise NABERS this is part of the Agreement to Rate
- NABERS will close the agreement and confirm via email
Agreement to Rate for a mixed-use building
When one building consists of multiple building types, a separate application, agreement and payment is required for each building type.
Agreement to Rate for the NABERS Energy Performance Indicator
An Agreement to Rate can be used for buildings that are eligible for a NABERS Energy Performance Indicator rating. To apply for this type of Agreement to Rate, please download the Energy Performance Indicator version of the contract.
Find out more about the NABERS Energy Performance Indicator.
Agreement to Rate discount
The Agreement to Rate can be used on its own for all rating types, or alongside a Commitment Agreement for Energy to meet developers’ requirements and obligations.
In the instance where both contracts are used together, the Agreement to Rate will be included in the cost of a Commitment Agreement.
To take advantage of this discount:
- Apply and pay for the Agreement to Rate
- Wait for the payment confirmation email to be sent to you
- Email a PDF of your Agreement to Rate payment confirmation email along with your Commitment Agreement to nabers@environment.nsw.gov.au
- Once the NABERS team has verified your details, you will receive a Commitment Agreement invoice or refund for the discounted amount
Please note: The Commitment Agreement fee will be discounted by the Agreement to Rate fee paid if both agreements are purchased for the same building before a building permit (or equivalent) is granted. Please see current pricing and offers for more information and applicable terms and conditions.
How to apply for an Agreement to Rate
To apply for an Agreement to Rate, you need to use our online application form. You can include multiple rating types within one Agreement to Rate for the same building (i.e. Energy, Water and Embodied Emissions can all be part of the same agreement).
Follow these steps to submit your application:
- Download the Agreement to Rate contract
- Complete and sign the application form
- You will receive an email containing your with the invoice and application details
- Make payment online using one of three available methods:
- Credit card
- PAY ID (clearing time of 24 hours)
- BPAY (clearing time of 48 hours)
- Once payment is received, your application will be processed by NABERS. You will receive your counter-signed agreement within five business days
NSW Sustainable Buildings SEPP and the Agreement to Rate
From 1 October 2023, as part of the NSW State Environmental Planning Policy (Sustainable Buildings 2022), also known as the Sustainable Buildings SEPP, all large commercial developments will be required to commit to obtaining a minimum NABERS Energy and Water star rating.
The NSW Sustainable Buildings SEPP is the first example of the Agreement to Rate contract in use as a compliance mechanism for state planning policy. The Agreement to Rate is to be signed at the design stage of a building and assists developers in meeting their requirements under the policy.
Energy and Water Standards
For compliance with the Sustainable Buildings SEPP, large commercial developments that must obtain a NABERS Energy and Water rating include offices over 1000m2, hotels with 100+ rooms and buildings with 100 or more serviced apartments.
The minimum required NABERS Energy and Water ratings are defined as follows:
What if my building doesn't meet the requirements?
Upon building completion and assessment, if the NABERS ratings do not meet the minimum standards as defined by the Sustainable Buildings SEPP, the development must:
- Purchase large-scale generation certificates to bridge any performance gap (the difference between the rated annual electricity use and the required energy use standards) and / or;
- Purchase ACCUs or obtain Climate Active certification for the use of on-site fossil fuels
The Performance Gap Assessment Calculator is used to calculate the required type and quantity of carbon offsets to be purchased.
Refer to the Performance Gap Assessment Calculator User Manual for more information on how the calculator determines the required offsets.
Embodied Emissions
Large commercial developments seeking to demonstrate good as-built performance for embodied emissions can opt to enter a NABERS Agreement to Rate for embodied emissions. A single Agreement to Rate can be used to combine Embodied Emissions, Energy and Water ratings for each development type.
The Embodied Emissions Material Form has been developed by NABERS to enable applicants to input quantities of key construction materials used. While the initial form does not provide a quantification of the embodied emissions of developments, it will offer valuable data for benchmarking and future targets.
Once the NABERS Embodied Carbon tool is released in mid-2024, applicants must use the online NABERS Embodied Emissions Tool to disclose emissions attributable to the development.
Agreement to Rate Register
Find out more
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Read the Agreement to Rate contract to find out more about the steps, rights and obligations involved in entering into an Agreement to Rate.
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Read the Agreement to Rate contract plain English explainer, which summarises your obligations at each stage of the process in plain English.
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Find out more about the differences between the Agreement to Rate and the Commitment Agreement
Still have questions?
Email us at nabers@environment.nsw.gov.au