Whether your washing machine just died or you have an old air conditioner that’s chewing through your electricity bill, replacing whitegoods is never a fun task. And now, you’re being recommended energy-efficient models. Why buy energy-efficient appliances? Are they worth the investment? We’ve outlined everything you need to know and how a furniture loan can help you cover the costs.
Overview:
- What does it mean for an appliance to be energy-efficient?
- How do energy efficient appliances work?
- Why buy energy efficient appliances?
- Best time to run appliances to save money
- How to choose energy efficient appliances
- What appliances use the most energy in Australia?
- Energy efficient appliance FAQs
What does energy-efficient mean for appliances?
How energy efficient an appliance is basically comes down to its Energy Rating Label. Energy Rating Labels were first introduced in 1986 and became mandatory for any goods that use large amounts of electricity in 1992.
What the Energy Star means on appliances
The Energy Rating is a star rating that ranges from 1 to 10 stars, and indicates the energy efficiency of a model in comparison to similar models of the same size. For example, the energy efficiency rating of a 700L fridge is measured against other 700L fridges. This means the higher the star rating, the less energy it uses, and the more you save on bills. Energy Rating Labels may also include an estimate (based on a standardised test) of how much electricity the model will use annually.
Originally, guidelines provided between 1 and 6 stars to determine energy efficiency. However, new technological advances have allowed even greater energy efficiency than before, now reaching a 10-star maximum!
How do energy efficient appliances work?
Energy efficient whitegoods run more effectively, and therefore use less energy to complete their tasks. The exact methods for achieving this will depend on the type of appliance you have.
Examples of how appliances can use less energy include:
- Running partially or fully off of renewable energy sources
- Using less water
- Economy settings or “eco mode”
- Operating at a lower temperature
- Going into power-saving mode when not in use
- Automatically operating in off-peak hours
- Not running at full capacity all the time with inverter technology
Why buy energy efficient appliances?
There are a number of benefits to buying energy efficient appliances. Check out these pros and cons to help you understand why energy efficient appliances are a good investment:
Pros | Cons |
|---|---|
| They save you money in the long-term because you’re not using as much energy – so your electricity bills are cheaper | Initial higher cost of purchase compared to low-energy star appliances |
| Energy-efficient models often feature smarter technology that improves performance | Cost of any repairs and maintenance |
| They’re more environmentally friendly and can help save water | |
| Government rebates on eligible energy-efficient appliances |
How much money do energy-efficient appliances save?
It ultimately depends on the appliance and the energy ratings. But let’s look at an example. Say you’re looking to buy a 400L fridge/freezer combo. One has a 3-star rating, and the other has a rating of 5.
When you use the Energy Rating calculator to compare the two, you can see that the 3-star model costs you $240.74 to run each year, while the 5-star model only costs $162.08. So if you opt for the 5-star fridge, you could be saving $78.66 annually.
Are energy-efficient appliances more expensive?
Some of these energy-efficient products are more expensive than their less efficient counterparts. However, energy efficiency does pay off in the long run. Appliances like fridges can be used for decades if properly used and serviced. Therefore, paying a little bit more in the short term can lead to tangible savings in the long term. If all the appliances in your house are energy-efficient, you’ll save yourself big dollars!
Plus, if you need to sell these items on places like Gumtree for any reason, they’ll be a lot more attractive to buyers because of the energy rating. You can also take out a small cash loan to cover the costs, especially if you need to replace your washing machine or air con ASAP.
Why are energy efficient appliances better for the environment?
Power-saving appliances are worth it if you want to save money in the long run, but they also have a better impact on the environment. They reduce greenhouse gas emissions and water usage. Plus, some appliances run fully or partially on clean, renewable energy sources.
Best time to run appliances to save money
Different energy providers will have different peak hours and off-peak hours. However, peak demand is usually said to occur between 3pm and 9pm in Australia. Try to do your laundry and operate any heating or cooling systems outside of those hours.
How to use appliances efficiently
Whether you are considering energy efficient appliances or just wanting to find some clever ways to save money, keep an eye on the standby power drawn by appliances when they are not being used. Standby power is estimated to account for 3% of your household energy use and could cost up to $100 extra a year.
You can reduce the standby power use by:
- Switching appliances off at the wall when not in use – other than fridges, freezers and other appliances you use frequently throughout the day
- Investing in smart plugs with timers that automatically switch off appliances at certain times of the day
- Investing in energy-efficient appliances with lower running costs and better performance.
There are also other ways to optimise energy usage while you’re using the appliance, such as:
- Washing full loads in the washing machine and dishwasher
- Cold settings on washing machine
- Avoiding opening the fridge, freezer or oven doors unnecessarily
- Keeping appliances clean
- Keeping areas around appliances well ventilated
How to choose energy efficient appliances
Has your current appliance stopped working, or are you moving into a new home and looking to save money on your energy bills? As we know, energy efficient appliances can be a bit of an investment at first. Make sure you compare the following factors when you are deciding what appliance to buy:
- Energy Star rating
- Reviews of the product
- Initial cost vs long-term saving possibilities
- Cost vs frequency of use
- Cost vs expected product life
What appliances use the most energy in Australia?
Whitegoods are essential to our daily lives, but some of them have a higher impact on energy use and bills than others. Here are some of the top culprits for using the most energy:
- Heating and cooling systems
- Water heater
- Oven and stovetops
- Fridges
- Washing machines
- Dryers
- Pool heaters, cleaners, and pumps
- Home entertainment systems and electronics
Energy saving tip: keep track of the kilowatt usage on your energy bill
If you’re not sure where big spikes in your energy bill are coming from, then keep an eye on the kilowatt usage listed on there. You will likely see it spike in winter when you use more heating appliances, and on hot days when you use cooling appliances.
Knowing how much your appliance is costing you can help regulate usage. And you can weigh up whether it’s worth keeping the appliance or it’s time to look for energy-saving alternatives. If you’re looking for some energy saving alternatives instead of a heater, check out our blog on the cheapest ways to heat a house this winter.
Start becoming more energy efficient today
If you’re looking for your next big whitegoods or electrical purchase, like a new fridge, washer, or even TV, strongly consider the Energy Rating Label. You’ll not only save money in the long run, but you’ll be doing your bit for the environment!
Fund your energy saving goals with a Swoosh furniture loan
When you’ve found the right energy efficient product to meet your needs, but need that little bit extra help, apply for a furniture loan with Swoosh today. The application process is 100% online and only takes a few minutes. You can also get in touch with our friendly team if you need any help. Apply now!
Energy Efficient Appliance FAQs
Can energy-efficient appliances be claimed on taxes?
If you work from home or operate a business, then you may be eligible for some tax deductions on energy expenses and energy-efficient appliances. However, it must be necessary for your work, and you have receipts and records. See the ATO website or talk to a tax agent for advice on what you can claim.
How to know if an appliance is energy efficient?
When you buy a high-energy household appliance, there will be an Energy Rating Label that shows how energy efficient the appliance is compared to similar products. If your appliance no longer has a star rating sticker, you can find registered models on the Energy Rating website calculator.
It is mandatory for high-energy household appliances to have a star rating. Some small appliances that consume very little power do not require a star rating.
Are there any government incentives for purchasing energy-efficient appliances?
Yes, there are a variety of government incentives for purchasing energy-efficient appliances depending on the state you reside in. You can search for rebates and concessions on the government’s Energy website. Currently, the Small-scale Renewable Energy Scheme is running across Australia for those who want to install solar or renewable energy water heaters.
What are the top stores to buy energy-efficient appliances?
Most appliance and technology stores sell energy-efficient appliances. It just depends on whether they stock the brands and models you are interested in and whether their staff can provide you with good service and knowledge on the products. The top stores to buy appliances in 2025 according to Choice are:
- E&S Trading
- Appliances Online
- Retravision
- Winning Appliances
- Betta Electrical/Betta Home Living
- Bing Lee
What are the best energy-efficient appliances to invest in?
It’s best to upgrade your appliances that consume the most energy first, which are usually air conditioning and heating, dryers, hot water heating systems, and fridges. Pairing energy efficient appliances with solar power can seriously cut down on your power usage, which can save you hundreds to even a couple thousand a year.
