Energy Labels: After 20 Years, Still A Bright Idea

Twenty years ago, the Federal Trade Commission issued the Appliance Labeling Rule to help consumers comparison shop for energy-efficient appliances. The Rule requires manufacturers of most major home appliances to attach labels that provide an estimate of the product's energy consumption or energy efficiency.

These now-familiar yellow-and-black EnergyGuide labels also show the highest and lowest energy consumption or efficiency estimates of similar appliance models, based on test procedures established by the Department of Energy. This information enables consumers to compare the energy use of the models they're considering.

The EnergyGuide is required on clothes washers, refrigerators, freezers, water heaters, dishwashers, window air conditioners, central air conditioners, furnaces, boilers, heat pumps and pool heaters. All these appliances are significantly more energy-efficient today than they were 20 years ago, thanks in large part to technological advances and competition for cost- and energy-conscious consumers.

Here's a look at the strides in energy efficiency made in many major household appliances during the past two decades, according to industry sources and the Department of Energy:

Appliance Efficiency Gain Improvements
Clothes washers 27% More rinse options; less hot water in the warm setting mix; better mixing valves; more effective water extraction
Refrigerators 100% Better condensers, compressors, evaporators, fan motors, door seals; use of foam insulation
Freezers 52% Better condensers, compressors, evaporators, fan motors, door seals; use of foam insulation
Water heaters 12-15 % Better insulation, improved recovery efficiency
Dishwashers 37% Improved spray arms and filtering systems; better wash action; less hot water usage; introduction of air dry cycle
Window/central
air conditioners		 29% New coil designs; more efficient compressors; better air circulation systems
Furnaces 21% Improved fan motor and heat exchanger efficiency

A major factor fueling increased energy efficiency was the introduction of Residential Energy Conservation Standards by the Department of Energy in 1987. These standards prescribed minimum levels of energy efficiency for many household appliances. In fact, the Department of Energy estimates that, through 2000, its Residential Energy Conservation Standards (complemented by the FTC's Labeling Program) will have helped saved consumers a cumulative $28 billion (in 1999 dollars) and enough natural gas to heat 19 million typical U.S. homes for a year. This year alone, the standards will help reduce the use of electricity by an amount equivalent to the output of 14 large power plants. That's equal to avoiding nearly 10 million metric tons of greenhouse gasses -- or taking more than 7.5 million cars off the road for the year.

These advances in energy efficiency also mean financial savings for consumers. According to industry officials, a new energy-efficient refrigerator costs about $50 less a year to run than a refrigerator manufactured in 1980. New room air conditioners cost about $26 less a year to run than those of 20 years ago. Actual household savings vary according to how much an appliance is used, the climate and local utility rates.

While helping keep consumers' utility bills in check, energy-efficiency appliances also help protect the environment and preserve limited natural resources. That makes the 20th anniversary of the EnergyGuide especially noteworthy.