No doubt you’ve spotted the ubiquitous EnergyGuide or Energy Star labels when shopping for home appliances, like a new dishwasher or heat pump. But knowing what to make of them can be tricky.

EnergyGuide and Energy Star are two separate programs administered by the federal government that work together to demystify the energy efficiency of home appliances for consumers. This week, we’re going to break down exactly what they are and how they operate to give you a better idea of the savings you can see in both dollars and carbon emissions when replacing outdated equipment.

What’s EnergyGuide?

Think of the yellow EnergyGuide tag, shown above, as a public energy efficiency report card, administered by the Federal Trade Commission. It makes clear a product’s energy efficiency performance and helps you compare it with similar models on the market. EnergyGuide doesn’t cover every appliance category, but the tag has to be visible to consumers under the 1975 Energy Policy and Conservation Act.

What about Energy Star?

Unlike the required yellow EnergyGuide label, Energy Star is a separate voluntary program run by the U.S. Environmental Protection Agency (EPA) that’s used to differentiate products (and even buildings) with the best energy efficiency stats.

You can spot the blue Energy Star logo in the bottom right-hand corner of many (though not all) EnergyGuide tags. Since Energy Star launched more than 30 years ago, the EPA has set and frequently updated efficiency specifications across a broad spectrum of products and buildings, from refrigerators and dishwashers to office towers and industrial facilities. Manufacturers and developers that meet these standards, as determined by an independent third party, get to display the logo on their products. And consumers and business leaders who care about their climate footprint can then use this information to guide decisions.

Do these labels really matter for the climate?

As we discussed in last week’s heat pump primer, home energy consumption matters—more efficient appliances can lead to big reductions in emissions. An Energy Star–certified washing machine uses 20 percent less energy than an uncertified one. For certified dryers, it’s 30 percent less. Amazingly, an Energy Star refrigerator with the freezer on the top (the most energy-efficient fridge design) can require less energy than a 60-watt incandescent light bulb! Between its certification and related rebate programs, Energy Star has saved 5 trillion kilowatt-hours of electricity, avoided more than $500 billion in energy costs, and kept more than 4 billion metric tons of polluting and planet-warming greenhouse gases from entering the atmosphere.

In the market for a new appliance? Keep these shopping tips in mind.

• When shopping around for the most efficient models, look for those with the lowest estimated yearly electricity use on their EnergyGuide tag.
• Use this Product Specifications search tool to find the most up-to-date stats for all appliances covered under the Energy Star program, as well as information on rebates and tax credits.
• To maximize your dollar, use Energy Star’s Rebate Finder to plug in your zip code and see how much money you can get back after buying a certified appliance in your area.
• Get more energy-saving tips in our guide on ditching the biggest fossil fuel offenders in your life.

Like what you’re reading? Share Top of Mind with a friend.

NRDC Top of Mind is delivered to your inbox Tuesday mornings. View our newsletter archive.

Received this from a friend and want to subscribe? Sign up here.

Have an idea to share with us or a topic you want to read more about? Reach out at topofmind@nrdc.org.