FTC FACTS for Consumers

FOR THE CONSUMER 1-877-FTC-HELP

ftc.gov FEDERAL TRADE COMMISSION

How to Buy An Energy-Efficient 

Home Appliance

Y ou 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 lowestpriced 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 energyefficient model.
Facts for Consumers 

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:

• Refrigerators, freezers, dishwashers, clothes 

washers

• Water heaters, furnaces, boilers

• Central air conditioners, room air 

conditioners, heat pumps

• Pool heaters

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

Q. Why should I care about energy efficiency?

A. 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. 

Q. Don’t all appliances have to be energy 

efficient? 

A. 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. 

Q. What makes one appliance more efficient 

than another? 

A. 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, lessobvious inside features can mean a big difference 

in your monthly utility bills. 

Q. How can I be sure energy efficiency claims 

aren’t just sales hype? 

A. 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. 

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. 
Facts for Consumers

Q. What’s the purpose of EnergyGuide labels?

A. 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. 

Shopping Strategy

Select the size and style. Measure the space 

the appliance will occupy to be sure your new 

purchase will fit. Make sure that you’ll have 

enough room to open the door or lid fully and 

enough clearance for ventilation. This may help 

you narrow your choices as you settle on the best 

capacity and style.

Know where to shop. Appliance outlets, 

electronics stores and local retailers carry 

different brands and models. Dealers also sell 

appliances through print catalogs and the Internet. 

Compare the performance of different brands 

and models. Ask to see the manufacturer’s 

product literature. Decide which features are 

important to you. Ask questions about how the 

different models operate: Are they noisy? What 

safety features do they have? What about repair 

histories? How much water do they use? How 

energy efficient are they? 

Estimate how much the appliance will cost to 

operate. The more energy an appliance uses, the 

more it will cost to run. Consult the EnergyGuide 

label to compare the energy use of different 

models. The difference on your monthly utility 

bill can be significant, especially when considered 

over the 10-to-20-year life of the appliance. You 

could save money over the long run by choosing 

Refrigerator-Freezer

With Automatic Defrost

With Side-Mounted Freezer

With Through-the-Door Ice

XYZ Corporation

Model ABC-W

Capacity: 23 Cubic Feet

Compare the Energy Use of this Refrigerator

with Others Before You Buy.

This Model Uses

539kWh/year

Energy use (kWh/year) range of all similar models

Uses Least 

Energy

539

Uses Most

Energy

698

kWh/year (kilowatt-hours per year) is a measure of energy (electricity) use. Your utility company 

uses it to compute your bill. Only models with 22.5 and 24.4 cubic feet and the above features are 

used in this scale.

Refrigerators using more energy cost more to operate.

This model’s estimated yearly operating cost is:

$53

Based on a 2006 U.S. Government national average cost of 9.81 cents per kWh for electricity. Your 

actual operating cost will vary depending on your local utility rates and your use of the product. 

Important: Removal of this label before consumer purchase violates the Federal Trade Commission’s Appliance Labeling Rule (16 C.F.R. Part 305).

ENERGY STAR

A symbol of

energy efficiency

Based on standard U.S. Government tests

Information about 

features, capacity, 

and size, so you can 

compare models.

The range of ratings 

for similar models, 

from “uses least 

energy” to “uses 

most energy.” This 

scale shows how 

a particular model 

measures up to the 

competition.

Estimate of annual 

cost to run this model.

Estimate of the 

appliance’s annual 

energy use. The lower 

the number, the more 

energy-efficient the 

appliance and the less 

it costs to run.

Manufacturer model 

number and appliance 

type.

Sample EnergyGuide
Facts for Consumers

1-877-FTC-HELP FOR THE CONSUMER

FEDERAL TRADE COMMISSION ftc.gov

Produced in cooperation with the U.S. Department of Energy

June 2000

Federal Trade Commission

Bureau of Consumer Protection

Division of Consumer and Business Education

a model that’s more energy efficient, even if the 

purchase price is higher.

Ask about special energy efficiency offers. 

Ask your salesperson or local utility about cash 

rebates, low-interest loans or other incentive 

programs in your area for energy-efficient product 

purchases — and how you can qualify.

Tips to Lower Your

Monthly Energy Bill

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.

• Move your refrigerator if it’s near the stove, 

dishwasher or heat vents. Vacuum the coils 

every three months to eliminate dirt buildup 

that reduces efficiency. Check the door 

gaskets for air leaks. Defrost the freezer 

when more than a quarter-inch of ice builds 

up. 

• Scrape but don’t pre-rinse dishes by hand 

if you have a dishwasher that automatically 

pre-rinses or has a rinse/hold cycle. Use 

the “energy saver” option found on many 

machines.

• Use pots that fit the size of your stove-top 

burners. Use lids on your pots and pans so 

you can cook at a lower burner setting.

• Match the water level and temperature 

settings on your clothes washer to the size of 

your load. Don’t fill the whole tub for a few 

small items.

• Clean your clothes dryer filters after each 

use or as necessary.

• Ensure that the temperature on your 

water heater is set to 120 degrees. Some 

thermostats are preset at the factory to 140 

degrees. 

For More 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 Internet, telemarketing, identity theft, 

and other fraud-related complaints into Consumer 

Sentinel, a secure, online database available to 

hundreds of civil and criminal law enforcement 

agencies in the U.S. and abroad.

The Department of Energy’s Energy Efficiency 

and Renewable Energy Network offers a 

clearinghouse of energy-efficiency information 

at www.eere.energy.gov. This information 

also is available by calling the toll-free hotline at 

1-877-337-3463 (TDD: 1-800-273-2957) or by 

writing: U.S. Department of Energy – EREC, PO 

Box 3048, Merrifield, VA 22116. 

Your state and local energy offices and local 

utility company also may be good sources of 

information.