Efficient electric appliances save consumers $18 billion over 10 years

Every home has appliances that come with a red, black and gold energy rating and each extra star on the label signifies a reduction in costly energy use of 15 to 30 per cent.

National laws on energy efficiency and mandated labelling standards for appliances and equipment have cut billions of dollars off power bills, according to economic modelling released to AAP.

Similar to taking clunkers off the road under vehicle standards, the regime removes poor performing products from stores while giving consumers confidence that the energy efficiency of products they’re buying is genuine.

Regulating and labelling appliances has saved Australian businesses and households up to $18 billion in energy costs from fiscal year 2011/12 to 2021/22, according to the federal government data.

Up to 67 terawatt-hours of energy were saved, equivalent to electricity used by all Tasmanian, Northern Territory and South Australian households during the same period.

“Whether it’s rooftop solar or better appliances, Australians know that these technologies can reduce bills and reduce emissions. This data proves it,” Assistant Minister for Climate Change and Energy Jenny McAllister said.

Fridge-freezers, air conditioners and hot water systems are among the most energy hungry fixtures in Australian homes and businesses.

Labelling helps consumers understand the running costs and minimum energy performance standards limit the energy that an appliance or piece of equipment can use for everyday tasks like cleaning a load of clothes or watching footy.

According to the Department of Climate Change and Energy, the Greenhouse and Energy Minimum Standards Act (GEMS) saved homes and businesses up to $2 billion in energy costs in 2021/22 alone.

Passed by the Gillard government and amended in 2023, the legislation has avoided the release of up to 60 million tonnes of carbon dioxide, which is equivalent to taking up to 18.9 million cars off the road for a year.

But even greater changes in consumer behaviour will be needed to cut power bills and achieve national climate targets.

“We want families and businesses to get a better deal when they walk into a store to upgrade or buy new appliances,” Senator McAllister said.

STAR-RATED ENERGY BILLS

* Households, on average, saved between $110 to $160 on their yearly energy bill in 2021/22 under GEMS, according to official calculations

* Save $1091.5 on running costs over 10 years from a 5.5 star rated cooling reverse cycle split system air conditioner compared to a 2.5-star system

* Slash more than $2000 over 10 years by buying a 6-star 65-inch television which uses only a third of the energy compared to a 1.5-star model

* Wash $2886 from energy bills over 10 years by replacing a 1-star 8.5 kg capacity washing machine with a 4.5-star version

* A business with 1000 workers each using two monitors could save $66,000 each year if using 8-star rated monitors instead of 2.5-star monitors of the same size.

Source: AAP