The Energy Rating Label on products sold in Australia, says Jared Mullane, Energy Editor at Canstar Blue, isn’t as black and white as it might seem.
The star system – more stars indicate energy efficiency, less indicates otherwise – simply shows consumers how much electricity an appliance will use compared to a range of models with similar features and capacities. However, it doesn’t individualise costs to your specific use.
Fortunately, there’s also another piece of advice on every label that can be used to figure out the real running costs.
What is the Energy Star Rating and why does it matter?
While some appliances may seem like a steal at first glance, they could end up costing you more in the long run — this is where the Energy Rating Label comes in.
For most appliances, the Energy Rating Label is pretty straightforward – the more stars on the label, the more energy-efficient the appliance. The label allows you to easily see how much electricity an appliance will use compared to a range of models with similar features and capacities. However, for cooling and heating, the introduction of the Zoned Energy Rating Label means it functions slightly differently.
The Zoned Energy Rating Label began rolling out back in 2019, and while it’s most commonly seen on air-conditioners, you may also see it on heaters too. Unlike the common six-star method, the Zoned Energy Rating Label provides a rating based on the climate you live in – as the performance of air conditioners and heaters is often affected by the type of climate they operate in. The sticker provides an energy rating for three climate zones – hot, average and cold – allowing you to pick the appliance that performs best in your location.
How to calculate the running cost
“There are two main factors on the Energy Rating Label,” Mullane says. “As well as the star ratings, there are also energy consumption figures that show how much electricity the appliance will use each year.” To work out the cost of running your new appliance, it’s worth going to the store (or online) armed with the rate you pay for your electricity usage in kilowatt hours (kWh). For example, if you pay 24c per kWh for your electricity, you can use the average annual energy consumption figure on the Energy Rating Label to calculate the yearly cost to run.
If it says the appliances uses 542kWh annually, just multiply that by 24c, to come to an annual total electricity (usage) cost of $130.08. This will give you a great frame of reference between two items with the same star rating. This handy appliance calculator can also crunch the numbers for you.
Using this method, consumers can develop a good idea of the annual cost difference between two items that have the same star rating. You can compare that to the price tag of the item to figure out its real cost over its ownership period. This, Mullane says, is far more cost-effective in the long-term than buying solely based on price or star ratings.
Where else can you go for info?
An excellent place to start for a good understanding of energy ratings, Mullane says, is the Energy Rating website. Here, you’ll see how simple it is to figure out the lifetime cost of an appliance.
“There’s a perception that energy efficient appliances are too expensive,” the site says. “However, the purchase price on the sticker is only half the story – running costs are like a second price tag and quickly add up.”
And so, the secret to success when it comes to purchasing an appliance and avoiding high ongoing costs, Mullane says, is knowing your energy costs. Check your bill, know your kWh rates, then do the simple maths when you’re at the store.
“Energy ratings should definitely be a consideration before purchase,” Mullane says. “Consumers shouldn’t be discouraged by a higher upfront price, within reason, as the running costs will quickly add up over a few years. These costs will often significantly outweigh the cheaper price tag.”
Interested in learning more about how other Aussie households use their energy, or what their attitudes are towards energy?
