When you’re shopping for a new refrigerator, washing machine, or dishwasher, the energy label is one of the most useful tools to help you make a smart choice. It tells you how efficiently an appliance uses electricity—and sometimes water—so you can estimate its running costs and environmental impact. But what do those ratings actually mean, and how can you use them to find the best option for your home? Here’s a clear guide to understanding energy labels in the United States.

What Are Energy Labels?

In the U.S., energy labeling is overseen by the Department of Energy (DOE) and the Environmental Protection Agency (EPA). The two main programs you’ll encounter are:

• ENERGY STAR® – a voluntary program that identifies products meeting strict energy-efficiency standards set by the EPA. Appliances with the blue ENERGY STAR label are among the most efficient in their category.
• EnergyGuide Label – a yellow-and-black label required by the Federal Trade Commission (FTC) on most major appliances. It shows how much energy the product uses and how that compares to similar models.

Together, these labels make it easier for consumers to compare products and estimate long-term energy costs.

How to Read the EnergyGuide Label

The EnergyGuide label provides standardized information so you can make apples-to-apples comparisons. Here’s what to look for:

• Estimated Yearly Energy Use: Shown in kilowatt-hours (kWh) per year, based on standardized testing.
• Estimated Yearly Operating Cost: Calculated using the national average electricity rate. Your actual cost may vary depending on local rates and usage.
• Comparison Range: A horizontal bar showing how the model’s energy use compares to the most and least efficient models in the same category.
• Key Features: Lists capacity, special functions, or other characteristics that may affect energy use.
• ENERGY STAR Logo (if applicable): Indicates the product meets or exceeds ENERGY STAR efficiency criteria.

By reviewing these details, you can quickly see which models will save you the most energy—and money—over time.

Why Energy Efficiency Matters

Energy-efficient appliances don’t just lower your utility bills; they also reduce greenhouse gas emissions and help conserve natural resources. For example, an ENERGY STAR-certified refrigerator can use up to 15% less energy than a standard model. Over its lifetime, that can translate into hundreds of dollars in savings and a smaller carbon footprint.

When millions of households choose efficient products, the collective impact is significant—reducing demand on the power grid and cutting national energy consumption.

Which Products Carry Energy Labels?

Most major household appliances are required to display an EnergyGuide label, including:

• Refrigerators and freezers
• Dishwashers
• Clothes washers and dryers
• Air conditioners and heat pumps
• Water heaters
• Furnaces and boilers
• Televisions and computer monitors

Smaller appliances, such as toasters or coffee makers, typically don’t carry these labels, but many manufacturers still design them with efficiency in mind.

How to Use Energy Labels When Shopping

When comparing appliances, don’t just look at the purchase price—consider the total cost of ownership, which includes both the upfront cost and the energy you’ll use over the product’s lifetime. A slightly more expensive, energy-efficient model often pays for itself through lower utility bills.

Here are a few practical tips:

• Check the EnergyGuide label for annual energy use and cost estimates.
• Look for the ENERGY STAR logo to identify top-performing models.
• Match the size to your needs. A larger appliance may use more energy even if it’s efficient, so choose the right capacity for your household.
• Consider your local energy rates. If electricity is expensive in your area, efficiency becomes even more valuable.

The Future of Energy Labeling

Energy standards and labeling programs continue to evolve as technology improves. The DOE and EPA regularly update testing methods and efficiency criteria to reflect real-world performance. In the coming years, expect to see more emphasis on smart appliances, durability, and sustainability, helping consumers make choices that are both energy- and resource-efficient.

A Label That Makes a Difference

Energy labels empower you to make informed, environmentally responsible decisions. By paying attention to the EnergyGuide and ENERGY STAR labels, you can choose appliances that save money, reduce energy waste, and support a cleaner future.

So next time you’re in the market for a new appliance, take a moment to read the label—it’s a small step that can make a big difference for your wallet and the planet.