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Energy Star Ratings for Appliances Explained: How to Read the Label

by Oceania Appliances on Nov 12, 2026

Energy Star Ratings for Appliances Explained

When you buy a new appliance in Australia, it comes with an energy rating label. But what do those stars actually mean, and how much difference does it make? Here's everything you need to know.

What is the Energy Rating Label?

The Energy Rating Label is a mandatory label on many appliances sold in Australia and New Zealand. It shows:

  • A star rating (1–6 stars, with a 10-star "super efficient" scale for some appliances)
  • An annual energy consumption figure in kilowatt-hours (kWh)

The more stars, the more energy-efficient the appliance. The annual kWh figure tells you how much electricity the appliance will use in a year under standard test conditions.

Which Appliances Have Energy Ratings?

Energy rating labels are required on:

  • Refrigerators and freezers
  • Washing machines
  • Clothes dryers
  • Dishwashers
  • Air conditioners
  • Televisions
  • Computer monitors

How to Calculate Running Costs

To work out annual running cost:

kWh (from label) × electricity rate ($/kWh) = annual running cost

Example: A fridge rated at 420 kWh/year with an electricity rate of $0.30/kWh costs about $126/year to run.

Compare two fridges: one rated 420 kWh and one rated 280 kWh. The difference is $42 per year — $420 over 10 years. That's real savings worth comparing at purchase time.

How Much Do Extra Stars Save?

As a rough guide, each additional star saves approximately 20–25% in energy use. So:

  • Upgrading from 2 stars to 3 stars → roughly 20–25% savings
  • Upgrading from 2 stars to 5 stars → roughly 50–60% savings

Water Efficiency Ratings (WELS)

Washing machines and dishwashers also carry a Water Efficiency Labelling Scheme (WELS) rating, showing water consumption per cycle. More stars = less water used. This matters in areas with water restrictions and for reducing your water bill.

What About Refurbished Appliances?

Certified refurbished appliances may be older models with lower star ratings than the latest products. However, the savings on purchase price often far outweigh any difference in running costs, especially when you compare the total 5-year cost of ownership. At Oceania Appliances, we can tell you the energy rating of any appliance we sell so you can make an informed comparison.

Browse Energy-Efficient Appliances

Visit oceaniaappliances.com.au to browse certified refurbished fridges, washing machines and dryers. Free delivery across Sydney and NSW. Call 02 9627 7355 for advice.

Tags: appliances, Australia, energy rating, guide, star rating
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