The Government Program That Has Secretly Saved You HUNDREDS on Energy Bills May Be Going Away

Yahoo

5 days ago

"Hearst Magazines and Yahoo may earn commission or revenue on some items through these links."It is no secret that the current administration is making a concerted effort to downsize, well, pretty much the entire government, starting with (but certainly not limited to) any agencies whose purpose is to combat climate change. If the Environmental Protection Agency (EPA) comes to mind, you're correct.
Earlier in the month, President Trump hinted that one instantly recognizable symbol and the program it represents will likely be on its way out. The symbol in question is the blue sticker with the word "energy" written in cursive beside a silhouette of a star. That's right: The Energy Star program is potentially on the EPA's chopping block for the 2026 budget plan.
Ahead, we're breaking down what this program is and how its potential dismantling may impact your energy bills and future appliance purchases.
According to the U.S. Department of Energy's website, "Energy Star is a joint program of the EPA and the Department of Energy (DOE). Its goal is to help consumers, businesses, and industry save money and protect the environment through the adoption of energy-efficient products and practices."
Initiated in 1992 by President George H.W. Bush, the Energy Star program has a somewhat complicated history, but for the most part, it has been well-received and bipartisan-supported. There has never been any threat to its existence—until now. Energy Star's potential demise could mean that consumers will no longer be able to easily opt for energy-efficient products, which could result in higher energy bills.
According to Ben Evans, the federal legislative director of the U.S. Green Building Council, the Energy Star program cost the government approximately $32 million in 2024. While this amount fluctuates from year to year, the program also saves consumers around $42 billion a year. In other words, the benefits to consumers enormously outweigh the cost to the government, especially when considering just how much the government spends each year. To put this in perspective, in the fiscal year of 2024, the federal government spent $6.8 trillion, which means it allocated about 0.00044 percent of the federal spending on Energy Star.
To put it in layman's terms, the purpose of the Energy Star program, Evans says, is to "give consumers more transparency around the energy efficiency of a given product, and the label was basically just a simple indicator that these rated products are highly efficient among their category class."
The benefits of energy-efficient products are two-fold: Not only does less energy consumption mean reducing the need for electricity generation (resulting in more reliable power grids and fewer blackouts), but it also means lower energy bills. According to Energy Star's website, the program has helped Americans save more than $500 billion in energy costs since its launch in 1992.
While Energy Star-certified appliances are generally more expensive than their non-certified counterparts, the long-term savings far outweigh the purchasing cost. Notably, the Energy Star certification isn't just for appliances; homes, too, can don the blue logo. In fact, according to Evans, "around 350,000 Energy Star-rated homes were built in 2024, with around 100,000 of those in Texas."
There's no end date for the Energy Star program as of this writing, even if it is likely to be dismantled at some point in 2025 or 2026.
"The [2026] budget does seek to significantly scale back the EPA, which could involve organizational restructuring, including the elimination of non-regulatory programs like Energy Star," says Finn Hossfeld, the U.S. lead of Climate Action Tracker. "However, given that Energy Star was written into law by Congress in the 2005 Energy Policy Act, the program's elimination without an act of Congress would be met with legal challenge."
If and when the Energy Star program is dismantled, you likely won't see a big difference on your next utility statement. The effect would be longer-term.
"Dismantling the program leaves consumers less informed about their purchases. Its elimination would also risk slowing the pace of energy efficiency improvements, which is a key means of reducing both costs and emissions at the same time," Hossfeld explains.
What's most likely to happen in the short term would be a more obfuscated consumer environment.
"Ultimately, confusion in the market is not a good thing for anyone," Evans explains. "Energy Star is what drives consumers to these energy-efficient products that are helping them save in the long term, so manufacturers invest in producing them, but if there's no clarity on energy efficiency in consumer products, there will become less demand, which means they won't be produced as much, and it becomes a vicious cycle."
All this to say, the elimination of Energy Star doesn't mean your energy bills will automatically go up. However, if you are looking to buy a new appliance or home in a few years, the end of this program means that you won't have much clarity on how energy-efficient it will be.
Our advice? Buy Energy Star-rated products while you still can. They may be more expensive, but they still provide a good return on investment. According to the Energy Star impacts page, "By choosing Energy Star, a typical household can save about $450 on their energy bills each year and still enjoy the quality and performance they expect." That's not nothing!
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