Reading energy efficiency labels

What the label tells you

Appliances such as fridges, air conditioners, washing machines and televisions carry a label showing their energy efficiency. In Korea, products are graded from 1 to 5, with lower numbers meaning less energy used to do the same job; other countries use letters or stars. The label shows more than the grade. Depending on the product, it lists monthly or annual energy consumption, and may add carbon emissions or an estimated energy cost. Many people glance at the big grade and move on, but it is the smaller figures underneath that actually determine your bill and environmental impact. This guide focuses on how to read and compare labels rather than on the exact thresholds for each grade.

A grade is a ranking within a group

An efficiency grade is closer to a relative score among products of the same type and similar capacity. So a grade 1 small fridge and a grade 1 large fridge can use quite different amounts of electricity despite sharing a number. Criteria are also revised as technology improves, and when they are tightened a product that used to be grade 1 may fall to a lower grade. That is why comparing the grade on an old or second-hand appliance directly with a new one in the shop can mislead you. A grade means something only when compared within the same group at the same point in time.

Boxes to read on the label

When choosing an appliance, check the grade and then work through the boxes below. Confirm whether consumption is stated per month or per year before comparing it with another product. Label layouts can differ slightly between products even in the same shop.

• Efficiency grade: position within its group
• Energy consumption: kWh per month or per year
• Carbon emissions: converted figure for the use phase
• Estimated energy cost: based on the label's assumptions
• Capacity or size: confirm you are comparing like with like

Recalculate for your own usage

The consumption and cost figures on a label are calculated under set test conditions and assumed average usage. For appliances that run constantly, like fridges, the label is fairly close to reality, but for air conditioners and televisions, where usage varies hugely between homes, the gap can be large. Estimate how many hours a day you actually use the appliance, compare that with the label's assumption, and scale the figure up or down accordingly. Put the result into an electricity bill calculator to see the difference for your own home. If your tariff has tiered blocks, remember that the cost of the same energy depends on your total usage across all appliances.

Bigger capacity can use more despite a better grade

A common trap is assuming a large grade 1 product always uses less electricity than a smaller, lower-graded one. Grades measure efficiency relative to capacity, so buying something far bigger than you need can mean higher total consumption even with a good grade. Larger screens and larger fridges usually use more electricity. The right order is to decide the size your household needs first, then choose the most efficient product of that size. If you are tempted to size up, put the consumption figures side by side and see in numbers how much more it would use.

Weigh purchase price and running cost together

More efficient products are often more expensive. How long it takes for lower bills to make up the price difference depends heavily on usage and tariff; for an appliance used only briefly, it may never pay back. Conversely, an appliance like a fridge that runs all day, every day accumulates efficiency savings over many years. Governments and local authorities sometimes subsidise efficient appliances, but eligibility and conditions change over time, so check official information before buying. Replacing a working appliance purely for efficiency is not always a gain once you count the resources used to make the new one.

Common misconceptions

Most misunderstandings about efficiency labels come from reading too much into the single grade number. The label is a starting point for a decision; actual consumption depends on size and how you use the appliance.

• Grade 1 uses little power regardless of size
• Grade 1 from years ago equals grade 1 today
• The label's estimated cost matches your bill
• A more efficient model is always worth switching to now

Where to check and how to use it

Accurate label details for a given model are on the product page or in the manual, and in many countries you can search by model number on the website of the public agency that runs the labelling scheme. When buying online, look at the label image itself rather than the seller's summary. The label stays useful after you buy, too. Comparing it with your actual bill helps you review your habits, and you can check standby consumption separately using the method in the standby power guide.