The National Construction Code (NCC) 2022 Act in Australia introduces a mandatory requirement for new homes to achieve a minimum 7-star NatHERS (Nationwide House Energy Rating Scheme) energy efficiency rating, which is an increase from the previous 5 and 6-star ratings introduced in 2006 and 2011 respectively. This means that a substantial share of Melbourne’s housing stock constructed before 2006 has energy ratings below 5-star. Improving the energy performance and controlling the embodied energy of existing Melbourne homes depends largely on micro and small-scale construction enterprises, and homeowners. Both parties face persistent challenges, including limited awareness of emerging technologies and the long-term benefits of energy efficiency improvements, which encourage continued reliance on conventional construction methods, resulting in suboptimal material selection and a lack of prioritisation of energy performance improvements in small-scale renovation projects. This study aims to investigate sustainable renovation tools to assist building home owners in reducing embodied energy in Class 1 residential buildings constructed prior to 2006 to achieve 7-star rating. The applicability of advanced assessment tools, including Firstrate5, eTool, MATLAB based material ranking and Unreal Engine visualisation, were investigated. Examples of how these tools can be integrated into an AI-based digital platform that enables analysis of embodied and operational energy, highlights the importance of an Australian low-carbon material library, and identifies optimal upgrade pathways are presented. This framework would translate research findings into practical and scalable solutions for small businesses and homeowners.