You go shopping for a new refrigerator, and you're on a budget. The best buy is the 'fridge with the lowest sales price, right? Not necessarily. If you buy the lowest-priced refrigerator, you may end up spending more than if you buy a more expensive one. The reason? The cost of owning a home appliance has three components: the initial purchase price, the cost of repairs and maintenance, and the cost to operate it.
To figure out how much you'll spend over the lifetime of the appliance, you have to look at all these costs. The appliance with the lowest initial purchase price, or even the one with the best repair record, isn't necessarily the one that costs the least to operate. Here's an example of how an appliance's energy consumption can affect your out-of-pocket costs.
Suppose you're in the market for a new refrigerator-freezer. Different models of refrigerators with the same capacity can vary dramatically in the amount of electricity they use. For one popular size and configuration, for example, the annual electricity consumption varies across models from a low of about 600 kilowatt-hours a year to a high of more than 800 kilowatt-hours a year. Based on national average electricity prices, that means the annual cost to operate this refrigerator can range from about $50 to $70, depending on which model you buy. A $20 difference in annual operating costs might not sound like much, but remember that you will enjoy these savings year after year for the life of the appliance, while you must pay any difference in purchase price only once. As a result, you may actually save money by buying the more expensive, more energy-efficient model.
You can learn about the energy efficiency of an appliance that you're thinking about buying through the yellow-and-black EnergyGuide label it displays. The Federal Trade Commission's Appliance Labeling Rule requires appliance manufacturers to put these labels on:
When you shop for one of these appliances in a dealer's showroom, you should find the labels hanging on the inside of an appliance or secured to the outside. The law requires that the labels specify:
The capacity of the particular model
For refrigerators, freezers, dishwashers, clothes washers and water heaters, the estimated annual energy consumption of the model
For air conditioners, heat pumps, furnaces, boilers and pool heaters, the energy efficiency rating
The range of estimated annual energy consumption, or energy efficiency ratings, of comparable appliances.
Some appliances also may feature the EnergyStar logo, which means that the appliance is significantly more energy efficient than the average comparable model. For more information on the EnergyStar program, operated by the Department of Energy and the Environmental Protection Agency, visit the EnergyStar website at www.energystar.gov.
For An Energy-Smart Deal On Your Next Appliance...
Read the EnergyGuide label.
Compare the energy use of competing models.
Estimate their differences in energy costs.
Consider both purchase price and estimated energy use when deciding which
brand and model to buy.
Why should I care about energy efficiency?
The more energy efficient an appliance is, the less it costs to run, and the lower your utility bills. Using less energy is good for the environment, too; it can reduce air pollution and help conserve natural resources.
Don't all appliances have to be energy efficient?
All major home appliances must meet energy conservation standards set by the U.S. Department of Energy. It's the law. But many appliances beat the standard, use even less energy and cost less to run.
What makes one appliance more efficient than another?
Most of the differences are on the inside -- in the motors, compressors, pumps, valves, gaskets and seals, or in electronic sensors that make appliances "smarter." Even if two models look the same from the outside, less-obvious inside features can mean a big difference in your monthly utility bills.
How can I be sure energy efficiency claims aren't just sales hype?
Manufacturers must use standard test procedures developed by the Department of Energy to prove the energy use and efficiency of their products. Many have these tests performed by independent laboratories. The test results are printed on the EnergyGuide labels, which manufacturers are required to put on many of their appliances.
What's the purpose of EnergyGuide labels?
The EnergyGuide labels help you compare the efficiency or annual energy use of competing brands and similar models. Look for the labels on clothes washers, dishwashers, refrigerator/freezers, room air conditioners, water heaters, pool heaters and on central home heating and cooling equipment. If you don't see an EnergyGuide label, ask a salesperson for the information.
Being an energy-smart consumer means getting the most from the energy you use. Here's how you can cut energy waste without sacrificing comfort or convenience.
The Federal Trade Commission offers a wide range of business and consumer information online at www.ftc.gov. This information also is available by calling the toll-free helpline at 1-877-FTC-HELP (382-4357) (TDD: 1-866-653-4261) or by writing: Federal Trade Commission, Consumer Response Center, 600 Pennsylvania Avenue NW, Washington, DC 20580.
The Department of Energy's Energy Efficiency and Renewable Energy Network offers a clearinghouse of energy-efficiency information at www.eren.doe.gov. This information also is available by calling the toll-free hotline at 1-800-DOE-EREC (363-3732) (TDD: 1-800-273-2957) or by writing: U.S. Department of Energy B EREC, PO Box 3048, Merrifield, VA 22116.
Your state and local energy offices and local utility company also may be good sources of information.
The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.