Appliances can be a costly investment. The price tag for new household appliances such as refrigerators, washers and dryers, or water heaters, can often reach four digits.  However, if you think about it, most appliances really have two prices – the “off the shelf” price versus the cost to operate the appliance (when you add the energy and water needed to operate it). The latter may offer you, the cost-conscious consumer, a chance to make the purchase price easier to bear. 

What’s the secret for getting the most bang for your buck when you’re appliance shopping? Aside from a big sale, it can be found on that big yellow and black label usually located on the front or inside of an appliance. No, that’s not a warranty card. It’s an Energy Guide label and it offers valuable details on the real cost of that appliance. 

Today, all major home appliances are required to meet minimum federal energy efficiency standards. In order to meet this requirement, manufacturers must test the energy efficiency of their products. The Energy Guide label provides the results of those tests, including how much energy that appliance consumes, energy use compared to other models, and the approximate annual operating cost of that model (which varies depending on local utility rates and the amount of use per consumer). Most appliances should have an Energy Guide label, with the exception of televisions, ranges, ovens, clothes dryers and humidifiers (because the amount of energy these products use varies minimally from model to model). See How to Read an Energy Guide Label

There are many decisions to be made when you shop for an appliance. Take refrigerators – should you go with a stainless steel model or a textured finish?  Ice maker or no ice maker? Important choices, but don’t forget to consider the model’s operating cost as well. For example, today Refrigerator A may be priced at $200 more than Refrigerator B. However, if, according to the label, Refrigerator A’s annual operating cost is $25 less per year than its counterpart, and you expect to keep that refrigerator for 10 years or more, then Refrigerator A is the better buy in the long run. Read the Energy Guide label before you make your purchase decision!  CPS ENERGY VIDEO TIP 

When you're bargain hunting, keep an eye out for the ENERGY STAR® logo on Energy Guide labels, on the appliance, or on the appliance packaging. ENERGY STAR-qualified appliances and products are built with advanced technologies that use 10 to 50 percent less energy or water than standard models, making them more energy efficient and environmentally friendly.

According to the Department of Energy, the average home spends more than $2,000 on energy bills every year. The use of more energy-efficient appliances with the ENERGY STAR rating can save you as much as $75 a year in energy costs.  CPS ENERGY VIDEO TIP