Energy-Efficient Appliances: Can They Save You Money?
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Author
Andrew Blok
Electrification and Solar Writer and Editor
Editor
Andrew Giermak
Solar and Electrification Writer and Editor
If you've noticed an increase in your energy bills, you have two main approaches to reduce your energy consumption at home.
First, you can actively manage your energy use. This includes actions like turning off lights, adjusting your thermostat, or using your ceiling fan to lessen the workload on your heat pump.
Or, you can replace older, failing appliances with new, energy-efficient models. Energy efficient appliances help you reduce your energy consumption without changing your habits.
See how much you can save with home energy changes
What are Energy Star appliances?
The quickest way to find an energy-efficient appliance is to find the Energy Star logo: the sky blue square with a white star is on the most efficient choices wherever you shop for appliances. Energy Star is a program run by the US Environmental Protection Agency.
Energy Star ensures appliances meet certain appliance energy efficiency standards for their category. Those standards vary by the type of product (it doesn’t make sense to judge a heat pump and a clothes dryer by the same metrics) and are updated over time.
How much money do Energy Star appliances save?
EPA says since the program’s start in 1992, Energy Star appliances have avoided 5 trillion kilowatt hours of energy consumption, good for $500 billion in avoided energy costs.
While the amount you can save will vary by the model and appliance you’re buying, the model you’re replacing, and your usage habits, you’ll likely spend less on energy. That’s true even if you’re replacing an old Energy Star appliance with a new one, since standards improve over time.
The EnergyGuide label shows how much it’ll cost to run an appliance based on estimated usage and energy costs. EnergyGuide labels are on boilers, ceiling fans, central air conditioners, clothes washers, dishwashers, freezers, heat pumps, refrigerators, televisions, water heaters, and more. That bright yellow label tells you how much energy the appliance is likely to use in a year and what that will cost. Your actual cost will depend on your local rate and how much you use the appliance compared to the average.
Air conditioners
Energy Star-rated central air conditioners meet specifications that make them at least 8% more efficient than new conventional models. Room air conditioners use approximately 23% less energy than uncertified counterparts. See Energy Star-rated air conditioners.
Ceiling fans
Ceiling fans need to move a specific amount of air for every watt of energy they consume (the amount varies by fan size). Energy Star-rated ceiling fans are 60% more efficient than conventional fans and must have warranties of at least three years. Using a ceiling fan can make a room feel four degrees cooler without adjusting your thermostat.
Clothes washers and dryers
Energy Star-certified washing machines use 20% less energy and 30% less water than their conventional counterparts. Over its lifetime an Energy Star washer can save $550 in avoided energy consumption. If all dryers sold in the US were Energy Star-rated dryers, Americans could see $1.5 billion in energy savings each year. See Energy Star-rated washers and dryers.
Dishwashers
A standard sized dishwasher needs to use less than 240 kWh of electricity per year and less than 3.2 gallons of water per cycle under normal use. That can save you $50 a year and 5,800 gallons of water over the machine's lifetime, the EPA says. See Energy Star-rated dishwashers.
EV chargers
At-home electric vehicle chargers must meet minimum efficiency standards for charging and idling. See Energy Star-rated EV chargers.
Freezers and refrigerators
Standalone and combined refrigerators and freezers use about 10% less energy than the minimum federal standard to get Energy Star certification. See Energy Star-rated fridges and freezers.
Heat pumps
Heat pumps are already the most efficient way to heat and cool your home in most places in the country. Since heating and cooling make up over 50% of home energy use in the US and heat pumps can do both, choosing an efficient model can make a big difference. EPA’s savings calculator estimates what you can save by switching to a heat pump. See Energy Star-rated heat pumps.
Smart thermostats
Smart thermostats that earn Energy Star certification “have been independently certified, based on actual field data, to deliver energy savings.” See Energy Star-rated smart thermostats.
Televisions
Energy Star-rated TVs are typically 25% more efficient than non-rated models and meet efficiency standards when they’re on standby or playing your favorite show. See Energy Star-rated TVs.
Water heaters
Electric water heaters must have a first hour rating (the amount of hot water it can supply in an hour if starting fully hot) of 45 gallons, have at least a six-year warranty, and meet efficiency requirements. See Energy Star-rated heat pump water heaters.
Other simple measures can boost your water heater’s energy efficiency, like insulating the first few feet of pipe leaving your water heater and lowering its temperature setting.
See how much you can save with home energy changes
What to look for when buying an energy-efficient appliance
Before you buy, make sure it can meet your needs (e.g. a water heater can deliver enough hot water for your whole family’s needs each morning). You can find people discussing their experience with a surprising range of appliances, brands, and models online. Be sure it fits the number of people living at home (or how many you think might in the future), your habits, and your available space.
Energy Star also publishes the most efficient appliances of the year and a searchable list of all the products earning Energy Star certification.
Rebates for energy efficient appliances
While some energy-efficient appliances might incur a price premium, you may find rebates and local tax incentives for energy efficient upgrades.
The federal government set aside $8.8 billion for energy efficiency rebates to be distributed through programs administered by the states.
Rebates are limited to households making 150% the area median income, though states can put a lower cap on their programs. The following rebates are allowed by the federal government, though each state can choose what rebates to offer when designing their program.
Several states have started offering rebates. Check with your own to confirm availability and eligibility requirements.
Home electrification rebates for Energy Star-certified appliances
| Item | Rebate amount |
|---|---|
| Electric heat pump clothes dryer | $840 |
| Electric stoves, cooktops, and ovens | $840 |
| Electric heat pump | Up to $8,000 |
| Electrical panel upgrade | Up to $4,000 |
| Heat pump water heater | Up to $1,750 |
| Induction cooktops | $840 |
Home efficiency rebates
| Energy efficiency project | Rebate amount |
|---|---|
| Projects reducing energy consumption by 20% | Up to $4,000 |
| Projects reducing energy consumption by 35% | Up to $8,000 |
Tips for Using Appliances Efficiently
Here’s how to make the most of your energy-efficient appliances.
Get to know your appliance
Some energy-efficient appliances take a bit of getting used to. For example, some people who use heat pump clothes dryers for the first time think their clothes aren’t dry when the cycle is finished, but really they’re just cooler. Running the dryer again for clothes that aren’t actually wet eats into what you gain in efficiency.
Some efficient appliances provide the exact same experience as their older, conventional counterparts, but others require a bit of learning. A smart thermostat is more convenient than a non-programmable one. But if it comes with motion detecting enabled and you don’t put the sensor in your home office, you might spend weeks wondering why the thermostat keeps switching to “away.”
Maintain them
Performing the regular required maintenance on your appliances is a good way to make sure they operate at their most efficient for years to come. Whether that’s replacing the air filters in your HVAC system, cleaning the lint trap on your dryer, or getting your heat pump serviced regularly, it all goes to lowering your energy bills.
Energy-Efficient Appliances and Home Electrification
Home electrification can deliver savings to you and climate benefits to the planet. According to the EPA, homes and commercial buildings account for 31% of US greenhouse gas emissions. Energy efficiency at home can eat away at that.
Home electrification, the process of swapping gas appliances for electric ones, is gaining steam as a response to climate change. Because electricity can be a carbon-free energy source, but natural gas can’t, electrification sets the stage for a zero-emission future.
Pairing electrification with rooftop solar can reduce your emissions immediately and reduce your electricity costs, which could increase as you add more electric appliances to your home.
If those appliances are efficient ones, however, you’re starting from a much better place overall. Because efficient appliances use less electricity, you can meet your needs with a smaller solar array, possibly reducing your upfront solar costs.
If you’re interested in learning more about taking control of your home’s energy, you can use our solar savings calculator or our energy advisor tool.
See what home electrification can do for you:
Frequently Asked Questions
What is Energy Star?
Energy Star is a program run by the Environmental Protection Agency that makes choosing an energy-efficient appliance easy. Since 1992, it’s saved Americans $500 billion, the EPA estimates.
How does an efficient appliance save money?
In short, efficient appliances save money by using less energy. The less electricity you use, the less you buy from your utility.
Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
