22-05-2025
Homeowners Could Be Left Footing the Bill for Higher Costs Without Energy Star
Since 1992, the iconic blue Energy Star label has guided homeowners in search of energy-efficient appliances. It's become a symbol of cost savings and environmental responsibility, credited with saving consumers more than $500 billion in utility bills and preventing over 4 billion metric tons of greenhouse gas emissions.
But now, that trusted label could soon disappear.
The Environmental Protection Agency (EPA), which oversees the Energy Star program, has announced plans to shut it down, citing cost-cutting measures and shifting priorities. If the move goes forward, it could leave millions of homeowners without the familiar benchmark they've relied on to compare everything from HVAC systems and refrigerators to washing machines and microwaves.
So what does this mean for you if you're planning to upgrade your appliances, or just trying to save on your next energy bill? Here's what to know about the potential phase-out of Energy Star, what's replacing it (if anything), and how to shop smarter in the meantime.
Energy-efficient appliances have helped homeowners in two ways: reduced cost savings and increased resale value.
Energy Star-certified products use significantly less energy than standard models (sometimes up to 30% less), which can translate to hundreds of dollars in annual savings. These savings are especially noticeable in regions with extreme temperatures, where heating and cooling costs spike—think Minnesota winters or Southwest summers.
Homes equipped with energy-efficient upgrades also tend to sell for more. Studies have shown that energy-efficient homes can command a resale premium of up to 8% in some markets, as buyers increasingly prioritize lower operating costs and eco-friendly features.
If the Energy Star program is phased out, homeowners could face a new kind of uncertainty—one that hits both their wallets and their decision-making power.
The biggest risk to homeowners is the lack of transparency around the appliances they're investing in, says Dr. Naeem Turner-Bandele, founder and CEO of Latimer Enterprises, an energy solutions company.
'I've used Energy Star product certifications as a transparent and independent source of information,' he says. 'Energy Star helps level the playing field where there's information asymmetry.'
Without the blue label to rely on, homeowners may find it harder to identify truly energy-efficient appliances in a crowded market full of marketing claims and confusing specs.
Dr. Turner-Bandele also foresees potential consequences for household energy costs. While the short term may offer some stability, thanks to the number of existing certified products already on the market, that may not last.
'Existing products on the market are Energy Star certified, so it should be possible to mitigate the fallout and recommend energy-efficient products based on existing databases,' he says.
But longer term, a lack of updated certification could erode consumer trust and increase inefficiencies.
'If new products are not certified, there will be increased information asymmetry. As a result, renters and homeowners could end up paying more for less efficient products, simply because they don't have the information,' Dr. Turner-Bandele warns.
In 2023, the average U.S. household spent $1,760 on electricity—and that number is expected to keep climbing. According to the Energy Information Administration, residential electricity costs are projected to rise 18% between 2022 and 2026.
For many families, energy costs are already eating into monthly budgets. Without the guidance of the Energy Star label, choosing efficient appliances may become more difficult, and the wrong choice could lead to even higher utility bills over time.
The stakes are especially high in cities like Phoenix, where extreme heat drives electricity use far above the national average.
The Energy Star label hasn't been retired—yet. So if you're currently shopping for new appliances, it's still worth looking for the blue label. And while we await the phase-out of those appliances, homeowners should arm themselves with as much information as possible before making a purchase.
Dr. Turner-Bandele points to emerging options in the private sector.
'Some companies, like Enervee and Consumer Reports, have energy and performance rating systems,' he says. 'Enervee, for example, has partnered with California and New York to provide a marketplace with products carrying its Enervee Score.'
But Turner-Bandele cautions that these tools may not fully replace what's being lost.
'The challenge Enervee and others will face is that their methodology isn't public, does not appear as rigorous as the EPA's third-party certification system, and lacks the same credibility as the EPA,' he explains.
While not perfect, partnerships between states and companies like Enervee at least offer a path forward—giving homeowners some level of independent assessment to guide energy-efficient purchases.
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