Choosing Energy Efficient Appliances

When the EPA started issuing appliance ratings in 1992, its goal was to promote energy efficient appliances by establishing standards. Appliances that make it through the strict testing guidelines and earn the Energy Star approval use about 20-30% less energy that their traditional counterparts. Each appliance has a percentage of energy it must not use compared to the standard.

Heating and cooling systems must use at least 10% less than the standard while refrigerators need at least 20% savings. With the average energy bill sitting at $2,200 annually, the cost of new appliances has the potential to pay for itself in a couple years.

As a result of this movement toward maximized efficiency, sleek, new refrigerators and effortless front-loading laundry machines are quickly becoming the standard. But it doesn't take a math whiz to compare their price tags with traditional electronics. Buyers have little clue as to their investment costs and the return value.

How much will you save on investing in these energy efficient products in the long haul? And just how much do they impact the environment?

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Front Loaders
Before discussing which machine to buy, you might be interested to know that you can reduce the cost of each load to just $.14 if you wash with cold water. Both electric ($.69) and gas ($.55) cost much more per load when using hot water. I don't notice much of a difference—and we are experts at filthifying clothes. If you wash with mainly hot water you'll spend $226 per year as opposed to $11 on cold loads. Add about $.11 per load for water.

If you opt to purchase those quiet, energy efficient front loaders, be prepared to fork over the cash. The average front loader is $270 more than a top loader (that's $540 more for the pair). Not only do front loaders use less water they also use less energy. Your clothes aren't agitated as much and don't need to be dried as long. If you currently use a lot of hot water for laundry, you'll save as much as $137 each year with a front loader. Cold water savings are much less at $28, and the cold water detergents are helping to drastically reduce the most expensive part of washing your clothes. If you average out the price of laundry for a front loader, you'll save roughly $75—so in about four years the up-front costs will be recouped.

Bottom Line:
Keep your current washer and drier spinning as long as possible. Your biggest savings in the laundry business is the cost to heat your water. Wash on cold and hang dry whenever possible. Save money for a new unit while you wait for the current units to expire and then buy front loaders. Don't forget to research repair centers in your area to make sure they will be able to service your machines—one large manufacturer has been dabbling in bankruptcy court for quite some time, so don't bank on any warranty.

Central Air System
Before you look at replacing the actual unit, do some investigation on your ductwork. If your piping system has cracks and leaks throughout, pumping energy efficient 72-degree air into them will only cool the attic. Much of the high cost of heating and cooling can be found in the system's foundation. Regardless of SEER number, a compressor can only do so much.

That being said, if your unit is over 12 years old you'd do well to consider an upgrade. When you buy an Energy Star model, expect it to function nearly 14% more efficiently. Make sure the unit you purchase is the right size for your space. The higher the efficiency rating the more it will save you.

Bottom Line:
It depends upon your needs. If you plan on moving within two or three years, it may not be financially sound to replace. However, if you are cooling a sieve, your heat/AC costs can ratchet your bill up toward $1000 each month, especially in the south during the hot months. Replacing the unit and/or ductwork will reap huge savings after a few years. Your house may never dip below 76-degrees, which is cause enough for me to pay for an overhaul. Unlike other energy efficient choices, your comfort is directly linked to your system's ability to cool and heat.

Dishwasher
To be considered an energy efficient appliance it must use at least 41% or less energy than the traditional models. As with front loaders and central air systems, when you choose to upgrade an appliance you'll pay a lot for it. Dishwashers use less water so you pay less to heat more water to wash the lasagna casserole dishes and crusty flatware.

Bottom Line:
The folks at Energy Star say that you'll save an average of $90 over the lifetime of a new dishwasher. Not too winsome or frugal, but if you need to buy one anyway, go for the Energy Star flavor. You can save on your pocket book and ecological footprint by running the washer with a full load (as you'll cycle the same amount of water with one or twenty dishes) and use the air dry option to avoid more energy use.

Refrigerators
The old ice box has big potential to save you over $100 each year. Most of them are sleek and fancy—and have separate temperature controls for veggies. If your unit was produced before 1993, you probably have a clunker cooling your precious edibles.

Bottom Line:
Unlike front loaders, you have a lot of leeway in price with refrigerators. You can choose from the bare bones variety or the shaved ice serving, latte making, oil changing kind and still save a lot of money on energy costs. Many surplus and seconds stores have steals on last year's models so you don't have to break the bank.

If you are looking to replace an appliance use it up and wear it out first. Save while you wait for it to collapse and you'll have plenty of options when it's time for the big purchase.

Tankless Water Heater
No doubt you've been wooed by the barrage of tankless water heater ads currently abuzz on home channels. Rather than keeping a vat of warm water in the garage and them pumping it throughout the home as needed, the tankless versions heat water as needed. The idea is not a new one. In many other countries around the world water is warmers directly at the shower head and, albeit lukewarm, serves as a decent way to snag a shower. Just don't touch the heater mid stream unless you need a good size jolt to wake up.

The larger capacity tankless water heaters seem like a perfect idea. They reside in the garage or wherever your former giant steaming tank of water once sat. The main drawback to switching to tankless heaters is initial cost. Most of the brands available are around 25% more efficient than the tanks, which means you'll need to hang on to it for nearly twenty years before breaking even. Plus, electric heaters often can't heat cold groundwater fast enough, so you'll need a gas hookup. They are also notoriously unreliable, running an inconsistent temperature throughout a shower.

Bottom Line:
Keep the rotund tank for a few more years and let the technology develop more. When either installation or units costs become more competitive, take the plunge. Make sure you know what to expect if you opt for a tankless unit.