How to Use the EnergyGuide Label When Upgrading Your HVAC Equipment

Chances are you’ve seen the EnergyGuide label displayed on home appliances. If you’re in the market for a new appliance, heat pump or other HVAC product that participates in the EnergyGuide program, the information on the label is essential for maximizing your investment and your energy efficiency. Here, we’ll dive into the details on this bright yellow label, explain how to read it, and what it could mean for your monthly utility bills.

What is the EnergyGuide Label?

The EnergyGuide label is an initiative of the EnergyGuide program regulated by the Federal Trade Commission (FTC) as part of its consumer protection initiative. The purpose of the label is to help consumers choose the right product for their needs by easily comparing similar products using energy efficiency information provided by the manufacturers. Products required to display the label include furnaces, central air conditioners, boilers, refrigerators, water heaters, dishwashers, clothes dryers, and clothes washers.

EnergyGuide vs. Energy Star Labels

While both the EnergyGuide label and the Energy Star label can help consumers make informed choices about major appliance purchases, they are not the same thing. Energy Star labels are blue, and feature on appliances that have met strict energy efficiency requirements by the Environmental Protection Agency (EPA) and Department of Energy (DOE). EnergyGuide labels are usually larger, always yellow, and highlight several key pieces of information. It’s important to note that if an appliance is rated by Energy Star, this designation will also appear in the lower right corner of the EnergyGuide label.

Why Does the EnergyGuide Label Matter?

EnergyGuide labels provide critical information that educates consumers in order to help them make the best decision when purchasing a major home appliance. Equipped with this information, buyers can better understand the energy use of any given appliance, and how associated energy costs compare with similar models.

What does this mean for you? It means that if you’re preparing to purchase a new HVAC system, heat pump, or air conditioner, you’ll have an important tool right in your hand if you know how to read and interpret the EnergyGuide label. This will help you make the best decision for your home by choosing a more energy-efficient appliance that uses less energy and saves you money. How?

Use the label information to compare important features within similar price ranges.
You may compare the estimated energy usage and operating costs among models.
Plug in the average local utility rates in your Indianapolis home to estimate the annual electricity consumption, which can help you calculate lifetime costs.

Where to Find EnergyGuide Labels on Your HVAC Equipment

Those glowing yellow EnergyGuide labels are thankfully pretty easy to spot, and have been intentionally designed that way. Unless they’ve been removed by a previous owner, you should be able to find one on your current HVAC system easily. While the original purchaser of the appliance can remove the label, it is against the law for anyone else to do so before the appliance has been purchased. So, if you’re looking for a new furnace or air conditioning unit, the label will be there.

If you want to check the label on your existing HVAC system, start by looking around the exterior of the unit. That’s the most common location for EnergyGuide labels. However, if it isn’t there, you can also check inside the door or access panel. If the label has been removed, you can also check the manual that came with it, or look at the manufacturer’s website.

How to Read EnergyGuide Labels

EnergyGuide labels are packed with useful information, but if you aren’t sure exactly how to read it, it may not mean all that much to you. Take a look at the key components of the EnergyGuide label and what they mean:

Key Features: You can find a product’s advanced features printed on the upper left-hand corner. This information should be primarily the same if you’re looking at the same type of appliance.
Manufacturer Information: The manufacturer of the product, model number and equipment size are printed in the upper right-hand corner.
Annual Operating Cost: The estimated annual cost to operate the appliance is a graphic displayed in the middle of the label.
Range of Operating Costs: This scale shows the typical price range for operating similar appliances.
Estimated Annual Energy Consumption: Listed below the operating costs graphic is information about the estimated annual energy usage of the product based on kilowatt-hours (kWH).
Energy Star Logo: If a product is Energy Star-certified, the Energy Star logo will be displayed in the bottom right-hand corner.

Understanding the Cost Range Scale on the Label

The range of operating costs on the scale shows the average low and high costs associated with operating similar appliances. The arrow pointing toward the scale shows where the model you’re looking at falls within that price range. If the arrow is pointing toward the lower end of the scale, you can safely assume the model you’re researching is more energy-efficient than competitors. If it’s on the high side, it may not result in the lower energy bills you’re hoping for.

What the Numbers Actually Mean for Your Monthly Bills

Speaking of energy bills, what does the information on the EnergyGuide label actually mean? When you take all of the data from the label into consideration, you should be able to get a good idea of how much it will cost to operate the appliance over the course of a year. A lower position on the scale of operating costs, plus an Energy Star logo usually means an appliance is fairly energy-efficient and should cost less to run.

However, there is a caveat. Your actual average costs may vary, because your price per kilowatt-hour could be very different depending on your utility company. To get the most accurate estimate, you can look through your recent utility bills and find out your rate per kWH. Then, you can compare that with the kWH usage on the EnergyGuide label to get a clearer picture of what you can expect to pay.

Learn How You Can Save Even More with Airtron

Purchasing a new HVAC system can be an overwhelming prospect for many homeowners. Interpreting the information on the EnergyGuide label can help you make a more informed decision so you can save energy and save on your utility bills. Still have questions about choosing a furnace, heat pump, or air conditioner for your home? Save your energy and start with Airtron. Our experts can help you choose a high-efficiency HVAC unit that fits your needs and your budget. And to ensure you’re making the best investment, we’ve got a simple online estimator you can use to get a quote quickly and easily. Get started and get your quote today!