Tip
Reading the EnergyGuide label
The yellow EnergyGuide label has been required on most U.S. appliances since 1980. Reading it correctly lets you compare apples to apples.
What's on the label
- Make & model — top left
- Estimated yearly energy use (kWh or therms) — center, large number
- Estimated yearly operating cost — based on national average rates ($0.13/kWh, $1.08/therm). Adjust for your local rate to get accurate cost.
- Comparison range — how this model stacks vs similar capacity/size units
- Energy Star® logo if certified — and the "Most Efficient" designation if applicable
How to compare
- Find your local electricity rate on your utility bill (typically $0.10-$0.30/kWh)
- Recalculate the yearly cost:
(label kWh) × (your rate) = your real annual cost - Subtract from the alternative model's cost to find lifetime savings (multiply by expected service life — typically 10-15 years for major appliances)
- Compare with purchase price difference; payback is often 1-3 years on the more efficient model
What the label doesn't tell you
- Standby power draw (look up Energy Star data for this)
- Water consumption (separate WaterSense label for fixtures)
- Repair costs / service life difference
- Noise level (separate decibel rating in product spec sheet)
Categories with EnergyGuide labels
Required: refrigerators, freezers, dishwashers, clothes washers, water heaters, central AC, heat pumps, furnaces, boilers, room AC, pool heaters. NOT required: dryers (until recently), TVs (separate Energy Star), small appliances.