What Energy Star Rating Should I Look for When Buying an Appliance?
The Australian Energy Star Rating label appears on most major appliances. It's one of the most useful tools for comparing running costs, but it's often misunderstood. This guide explains how to read the label, what rating to aim for, and how much money you'll actually save.
How the Star Rating System Works
The Australian Energy Star Rating uses 1 to 6 stars (some appliances can earn "super-efficient" ratings above 6 stars with extra stars on a different scale). More stars = more efficient. The system is relative within a product category — a 5-star fridge is more efficient than other fridges of the same size, but you can't compare a 5-star fridge to a 5-star washing machine.
The label also shows the annual energy consumption in kilowatt-hours (kWh). This is the most useful number for calculating actual costs.
How to Calculate Annual Running Cost
Multiply the annual kWh figure on the label by your electricity rate. In Sydney, typical retail electricity is approximately $0.28–$0.35/kWh (depending on your plan). So:
- Fridge using 400 kWh/year × $0.30 = $120/year to run
- Fridge using 250 kWh/year × $0.30 = $75/year to run
- Difference: $45/year in favour of the efficient model
Over 10 years, that's $450 in savings — often more than the price difference between the two models.
What Star Rating to Aim For by Appliance Type
| Appliance | Minimum Recommended | Best Available | Notes |
|---|---|---|---|
| Refrigerator (350–500L) | 3.5 stars | 5–6 stars | Runs 24/7 — efficiency matters most here |
| Washing machine (front-loader) | 4 stars | 5+ stars | Water efficiency also rated separately |
| Washing machine (top-loader) | 3.5 stars | 5 stars | Top-loaders typically less efficient than front-loaders |
| Dishwasher | 3.5 stars | 5+ stars | Water efficiency also important |
| Air conditioner | 3.5 stars | 6+ stars | Separate heating and cooling ISEER ratings apply |
| Dryer (vented/condenser) | 2.5 stars | 3.5 stars | Heat pump dryers are far more efficient |
Air Conditioners Are Different
Air conditioners use the ISEER (Indian Seasonal Energy Efficiency Ratio) for cooling and ISEER for heating. These are expressed as stars on the label but cover a wider range. For Sydney, where both heating and cooling are used, look for a combined ISEER of 5+ stars.
Water Efficiency: The WELS Rating
Washing machines and dishwashers also carry the WELS (Water Efficiency Labelling and Standards) star rating, measuring litres per cycle. In Sydney, where water costs approximately $2.50–$3.50/kL, a washing machine using 50L/cycle costs about $33–46/year in water (based on 6 cycles/week). Choosing a 4-5 star WELS model vs a 2-star model can save $15–20/year in water costs alone.
How Much Extra Should You Pay for Higher Efficiency?
As a rule of thumb: pay the premium if the payback period is less than 5 years. If a more efficient fridge costs $200 extra but saves $50/year in running costs, the payback is 4 years — worthwhile over a 10-year appliance life. If it costs $500 extra for $20/year savings, the payback is 25 years — probably not worth it.
Shop Energy-Efficient Appliances at Oceania Appliances
Our team can help you calculate the running cost of any appliance in our range. Visit our Wetherill Park showroom or contact us at support@oceaniaappliances.com.au. Open 7 days 10am–8pm.