Understanding Energy Labels and How They Affect Price

Buying a new appliance is a big decision both in terms of cost and how long you have to live with it, so going in with all the information you need is important. One of the first things you’ll notice when looking at your choice of potential appliances is the energy rating attached to each one. But what do they mean and, more importantly, do they affect the price? 

We’ve written in the past about how much energy-efficient appliances can save you on your energy bills and how much using different appliances can cost you. So we decided it was time to help you understand what they are and any impact they may have on price. 

Energy Labels

There’s no point in understanding how energy labels affect the price of an appliance without understanding what the energy labels are themselves.  So first things first, let’s give you a little crash course on the energy labels themselves.

So What Are They?

The Energy Labels on appliances such as TVs, fridges, washer dryers, dishwashers and washing machines show consumers how energy efficient they are. They’ve been around for more than 25 years but in 2020 the UK government gave them a bit of an update to reflect the change in energy efficiency standards.

What Do They Mean?

The Energy Labels rate the performance of appliances in terms of energy efficiency on a simple A to G scale replacing the old A+++ to G scale. This was done due to newer appliances ranking highly making it difficult to tell the difference between products. According to Euronics, more than 55% of washing machines on the EU market are ranked A+++ and more than 60% of dishwashers on the EU market are ranked A+++ or A++. This change in Energy Labels might mean that appliances that ranked as an A+++ or A++ on the old scale may now be labelled as something lower. 

Opting for more efficient appliances can help you save on your energy bills in the long run. Going for a D-rated fridge freezer over an F-rated one will save you roughly £570 on your energy bills over the 17-year lifespan of the product. This is roughly a saving of £33.53 a year on your energy bills! Whilst not a massive saving on its own, opting for more energy-efficient appliances throughout your home quickly adds up to bigger savings. For example, the most efficient dishwashers on the market will save you around £19 a year on your bills.

As well as making it much easier to compare appliances and savings on energy bills, it should hopefully set new standards for energy efficiency with manufacturers leading to even more savings in the future.

So Do They Impact Price?

So now we understand what the labels mean, what they can do in terms of saving on your energy bills, and what impact they have on the price of the appliance. We’ll take a look at some of the biggest categories of products and pick a selection of different products within this category with different Energy Labels. We’ll then compare the average prices of different Energy Labels and see how opting for a more efficient appliance can affect the price of your purchase.

TVs

Interestingly the F-rated TVs came in at similar prices to the G-rated. However, the F-rated TVs have much smaller screens compared to the G-rated which will probably impact the prices somewhat.

Whilst the average price of an E-rated is offset by how expensive the 77” Sony model is, there is a clear difference in price between E-rated TVs and F-rated TVs. It’s also worth noting at the time of writing, AO’s selection of E-rated also offered some pretty slim pickings, with these being the only three available.

Fridge Freezers

When comparing the different energy efficiencies of fridge freezers, there is quite a considerable difference in price between more efficient and less efficient models. Opting for a more energy-efficient model will set you back roughly an extra £500 upfront. However, it may save you money in the long run by cutting down the cost of your bills.

Washing Machines

When comparing the prices for the different energy labels, there wasn’t a clear difference in price between them. So when looking at purchasing a washing machine it may be easier to go for a more efficient machine to help you save on those bills.

Washer Dryers

When comparing the different prices of washer dryers there is a trend of more efficient models costing more upfront. Moving up to the next energy efficiency label comes at a cost of roughly £20 on average. Choosing a more energy-efficient appliance could save you that and possibly more over the lifespan of the appliance.

Dishwashers

Choosing a more efficient dishwasher can make a huge difference to the upfront cost. Going from an F-rated dishwasher to a B-rated one can mean an increase in the price of nearly £300.

So How Do Energy Labels Affect the Price of Appliances?

Energy efficiency can have an impact on the cost of your purchase depending on the appliance. Some more efficient appliances cost nearly £300 more than less efficient models and some only cost £20 more. So opting for a more efficient appliance may mean any savings on bills.