Appliance costs: how much money can energy ratings can save you?

CONSUMERS who take energy ratings on appliances seriously can save themselves more money, yet most of us still put price before power use.

CONSUMERS who take energy ratings on appliances seriously can save themselves more money, yet most of us still put price before power use.

Despite surging electricity prices giving energy star ratings greater importance as running costs rise over time, a new survey by Finder.com.au has discovered more than 40 per cent of consumers don’t even consider them.

Finder’s analysis found a two-star clothes dryer costing $719 to buy would cost a consumer $3801 over 10 years in total, but an eight-star dryer costing $1599 would cost $2589 over the same period — a 32 per cent cost saving.

The theory is sound, but in practice most people want the instant gratification of a good upfront deal.

Many people don’t check energy star ratings when buying appliances — costing them money.

“Many just go for what’s cheapest at the time of purchase rather than factor in how much they can save over a year, or even 10 years,” said Finder energy specialist Graham Cooke.

“If you’re tossing up a few options it’s hard to see past what’s in front of you at crunch time, whether it’s the price tag, brand or what the appliance looks like,” he said.

Mr Cooke said star ratings could be confusing, and people using them should also consider the size and capacity of an appliance.

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“The typical star rating is out of six, but because technology is constantly improving appliances can be super-efficient meaning they get a rating out of 10,” he said.

Research group Canstar Blue’s spokesman, Simon Downes, said people who sought the highest number of stars on their appliances were often “super eco-conscious because of the prices that they come with”.

Overall, price was still the number one factor for consumers when buying all categories of appliances, Mr Downes said.

“It’s understandable, because although people are more conscious of energy efficiency, it’s a difficult decision to take a higher upfront cost with a view you will save in the long run.

Energy rating labels enable consumers to compare the energy efficiency of appliances.

“The key is to find the balance between a reasonably energy-efficient appliance and the right price.”

Mr Downes said having energy ratings stuck on appliances prompted people to think about conserving power, even if they weren’t buying an expensive eco-friendly model.

“As energy bills generally get higher, the difference in savings accumulates over the years.”

The energyrating.gov.au website says people should always choose the right size model for their needs. “Bigger is not always better,” it says.

“When buying a television, each additional star is 20 per cent more energy efficient than the previous star.”

Finder’s survey of 2085 people also found that men were more likely than women to ignore energy ratings on appliances, and Baby Boomers were the most energy-conscious buyers.

Mr Cooke said energy ratings reflected several factors including heat generated, type of technology used, the size of the appliance and the energy needed to run it.

“The newer the model, the more energy efficient the appliance often will be,” he said.

“As well as the energy star rating, energy labels also list the appliances yearly electricity consumption on them, which is important if you want to compare across a number of different sizes and models.”

@keanemoney

Originally published as Appliance costs: how much money can energy ratings can save you?