The EnergyGuide - Your Guide to Energy Savings

When shopping for electrical appliances for your home, don’t be fooled by the price tag. The least expensive model may not be the bargain it would seem at first glance. It could cost a fortune to operate—an expense that adds up year after year, for as long as you own the appliance.

While energy-efficient products tend to cost more than their energy-guzzling cousins, the higher initial investment may be offset by lower energy use. An energy-efficient appliance that costs $200 more than a less-efficient model—but that results in an energy savings of $100 a year—will pay for itself in just two years. Because most major appliances remain in the home for many years, that makes the more expensive model a far better bargain.

Deciphering Energy Usage

The energy efficiency of similar appliances can vary significantly. Unfortunately, merely looking at various models won’t necessarily reveal the differences. However, the EnergyGuide can help you comparison shop.

The bright yellow stickers show the highest and lowest energy consumption or efficiency estimates of similar appliance models, based on test procedures established by the Department of Energy (DOE). This information enables consumers to compare the features, size and energy usage of models they are considering. From “uses least energy” to “uses most energy,” a scale shows how a model stacks up against the competition.

Since 1980, the Federal Trade Commission has required the EnergyGuide labels to be displayed on refrigerators, freezers, dishwashers, clothes washers, room air conditioners, water heaters, furnaces, boilers, central air conditioners, heat pumps and pool heaters. Labels are not required on clothes dryers, portable space heaters, kitchen ranges, microwave ovens, lights or on-demand water heaters.

Improving Energy Efficiency

According to the DOE, the EnergyGuide label has helped boost energy efficiency. Refrigerator efficiency has doubled through foam insulation and better condensers, compressors, evaporators, fan motors and door seals. The same things have improved freezers by 52 percent. Improved spray arms and filtering systems, better wash action, less hot water usage and introduction of an air-dry cycle have boosted dishwasher efficiency by 37 percent. New coil designs, more efficient compressors and better air circulation systems have improved air conditioners by 29 percent. Thanks to more rinse options, less hot water in the warm setting, better mixing valves and more effective water extraction, clothes washers are 27 percent more efficient. Improved fan motors and heat exchangers have boosted furnace efficiency by 21 percent. Better insulation and improved recovery efficiency have improved water heater performance by 12 to 15 percent.

Efficiency Equals Savings

According to the DOE, through 2000, consumers saved a cumulative $28 billion and enough natural gas to heat 19 million typical U.S. homes for a year, thanks to energy efficiency standards and labeling programs. In the year 2000 alone, the standards helped reduce the use of electricity by an amount equivalent to the output of 14 large power plants. Advances in energy efficiency have meant ongoing financial savings for consumers.

According to industry officials, a new energy-efficient refrigerator costs about $50 less a year to run than a refrigerator manufactured in 1980. New room air conditioners cost about $26 less a year to run than those of 20 years ago. Household savings vary based on how much an appliance is used, the climate and local utility rates.

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