Case Study

Energy Star: Is It The Best Indicator of Energy Efficiency?

By Vincent Lui on
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The Energy Star label helps more than one third of Americans choose their appliances and electronics. In addition to being a more eco-friendly choice for home appliances, the US government also offers rebates and tax credits for many Energy Star certified products, making them very attractive choices for greener living. However, the marketing appeal of this label has lead to some products receiving an Energy Star that is undeserved. Due to some flaws with the current Energy Star system, consumers should be aware that the Energy Star label might not always make the product the best choice for energy efficiency.



What is Energy Star?

The Energy Star program was created in 1992 by the United States government as a means to promote energy efficient products. The program has since spread to other parts of the world and the blue Energy Star label has become a significant factor in many people's choices on selecting which appliances to purchase. Lower energy usage means less of a strain on the environment as well as a smaller utility bill each month.

While there are different energy efficiency requirements for the different household products they certify, Energy Star labeled products are usually 20% - 90% more energy efficient than their non-certified counterparts. Usually, but not always the case.


Criticism About the Program

In the past, two main issues have been a source of contention between Energy supporters and critics: categorization and testing. Many watchdog groups, including the Consumer Reports and the Government Accountability Office, claim that Energy Star splits some products up into categories that are misleading. Refrigerators, for instance, are split into freezer-on-top and side-by-side categories. Energy Star labels are given to side-by-side and French-door type fridges even though they use much more energy than freezer-on-top refrigerators, leading many to think they would be a good choice for an energy efficient home.

The other big problem with Energy Star is that the program lets manufacturers do their own testing and only spot checks data submitted. When Consumer Reports tested a series of electronics and appliances, they found that the numbers were sometimes skewed and many products may not be as energy efficient as they claim to be. Often tested at optimal energy saving modes that are impractical to everyday use (for example, plasma TVs "tested" with the brightness turned all the way down), many products get Energy Star certification that may not deserve it.

To prove their point, in March of 2010 the Government Accountability Office submitted twenty fake products (including a gasoline powered alarm clock) with fake data to Energy Star. Shockingly, fifteen of the products received Energy Star certification, three received no response, and only two were denied. In addition, two of GAO's four fake companies were contacted by distributors as soon as they were listed on Energy Star's website, showing how much people relied on the Energy Star label.

But there is a silver lining. In response to this media scrutiny, the Department of Energy announced on March 19 that they will be tightening up requirements for Energy Star certification and re-examining about 200 basic models of home appliances at third-party test labs. Taking advice from critics, they also state they are in the process of developing a new system that will require all products applying for Energy Star certification to be tested at approved labs in the future.


Most items carrying the Energy Star certification do have a huge energy saving advantage over non-certified counterparts and are definitely worth buying, but the system does have its flaws. The bottom line is that right now, consumers should be aware that having the Energy Star label does not always automatically make the appliance the best choice for energy efficiency and it is always a good idea to do some research into the products you are planning to purchase to make a more informed decision rather than taking the label at face value.
 

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