How to Read a Product Energy Label Before You Buy an Appliance

Every major home appliance sold in Australia must carry an energy rating label. It's one of the most useful tools available to appliance buyers — but many people glance at the stars and ignore the numbers that actually matter. This guide explains how to read the label properly so you can make a smarter buying decision.

The Standard Australian Energy Rating Label

The Australian energy rating label (blue background, yellow stars) contains several elements:

1. The Star Rating

The star rating shows how energy-efficient this product is compared to other products of the same type and size. More stars = more efficient. The scale runs from 1 star (least efficient) to 6 stars, with some products carrying a 10-star "super efficiency" label (red background) for the most efficient products on the market.

Important limitation: Stars only compare products of the same size category. A 6-star 400L fridge may still use more energy per year than a 4-star 300L fridge, because the larger fridge has more volume to cool.

2. The Annual Energy Consumption Figure

The number displayed in large text below the stars — expressed in kilowatt-hours per year (kWh/year) — is the most important figure on the label for calculating running costs.

To calculate annual running cost, multiply the kWh/year figure by your electricity tariff:

Example: 350 kWh/year × $0.30/kWh = $105/year to run

This lets you directly compare the annual running cost of two different products, regardless of their size or star rating.

3. The Energy Consumption Scale

A horizontal bar shows where this product falls on a scale from the least efficient to most efficient products currently on the market. This helps you understand not just the absolute efficiency, but how this product compares to what else is available to buy right now.

The Water Rating Label (WELS)

Washing machines and dishwashers also carry a separate WELS (Water Efficiency Labelling and Standards) label — blue background with water drop icons. More stars means less water used per cycle. For households on water restrictions or with high water bills, this rating matters.

The label shows both the star rating and the actual litres per wash, which lets you calculate annual water consumption directly:

Example: 65 litres/wash × 365 washes/year = 23,725 litres/year

Practical Tips for Using Energy Labels When Shopping

• Compare kWh/year, not just stars, when two products are different sizes.
• Calculate the 10-year running cost difference between two models — if the more efficient model costs $200 more but saves $50/year, it pays back in 4 years and saves you money after that.
• For fridges and freezers, remember the label assumes specific ambient temperature conditions. In a hot garage, actual consumption may be 20–40% higher than the label figure.
• Check the water rating for washing machines and dishwashers — water savings can rival or exceed electricity savings over time, particularly in Sydney where water bills are significant.

Find Energy-Efficient Appliances at Oceania Appliances

At Oceania Appliances, we can tell you the energy rating of every appliance we stock and help you calculate the actual running cost difference between models. Our certified pre-owned and graded-new appliances often deliver better energy ratings than older units they're replacing — meaning the savings start from day one. Free delivery across Sydney, 3–6 month warranty on every unit. Shop online or visit our Wetherill Park showroom.