It can be smart to pay more for energy efficient home appliances

Saturday, 11 July 2015

Paying more for an appliance that guzzles less power is a bright thing to do, but working out exactly how much extra is tough.

Home appliances like dishwashers, washing machines and fridges all carry the star rating stickers of the Energy Efficiency and Conservation Authority.

Appliances can rate from one to six stars (with some half star ratings as well), and the top quarter of most efficient appliances in each category are allowed to carry the coveted Energy Star rating.

The higher the star rating, the better.

But greater efficiency comes at a price as the more efficient appliances also tend to be the ones that cost more.

But people pay different prices for the power to run their machines, and have different usage patterns (some run their machines whenever they need, while others run them in the wee small hours to save money).

That means the labels can't carry dollar figures for the annual cost to run them for potential buyers.

The waters are muddied further as the higher price appliances are also the ones that shop staff tell customers will last longer.

While cheaper appliances may last six to seven years, the more expensive ones should go for ten years or more, staff say.

Buyers of the cheaper machines likely to be back in store buying replacements years before shoppers who plumped for higher priced items.

So, buyers of more expensive machines can hope for both a longevity bonus, as well as cheaper running costs, though the value of the longevity bonus is impossible to know, given the uncertainty of how long appliances should last.

Exactly what savings you will make on power for buying a higher Energy Star-rated appliance are dependent on a number of factors.

There's your energy prices, which vary from power company to power company, the electricity plan you choose, and by the time in the day that you use the power.

And, there's your usage patterns, for example how many times a week you run the dishwasher, and on what settings.

The EECA website tries to paint a picture of the difference in running costs for different machines, though in assuming an electricity price of 26 cents per kilowatt hour, it may be overstating things a bit.

In central Auckland, for example, Nova Energy, charges between 12.7c and 22.4c per kilowatt hour (including GST and after its 15 per cent prompt payment discount), or between 15c and 26.35c per kwh (not including the discount).

Based on 26 cents a kilowatt hour, the annual cost difference between running a one and five star labelled 12-place setting dishwasher seven times a week for a year is $114.81.

Over ten years (assuming the dishwashers make it that far), that would be around $1150.

Between a two and four star 12-place setting dishwasher, it would be $53.94, or $539.40 over ten years.

Playing about with EECA's energy use calculator (http://www.energywise.govt.nz/tools/running-costs-calculator) begins to give an indication of how much more it may be worth paying to secure a more efficient machine, over a lower-rated machine.

The EECA labels on the front of appliances contain an estimate of the kilowatt hours a machine would use each year with ordinary use. This allows for rapid in-store comparisons to measure the rough running costs against the price tags of different appliances.

That's handy, as many people only buy appliances on sale days at stores.

At Harvey Norman at the time this article was prepared, there was a sale of appliances.

A Bosch Series 6 dishwasher (praised by the staff member for its looks, durability and tray layouts) would have cost $1756, and the label suggested 235 kwh per year for normal usage.

At 26 cents per kwh, that would equate to running costs of $61.10.

By comparison, a Westinghouse machine we were also shown was priced at $1186, and the label estimated the use at 352kw a year for normal usage.

At 26 cents per kwh, that would equate to running costs of $91.52.

That difference in energy use would take nearly 19 years to repay the difference in price, but again, we were told we were also buying a more durable, attractive and quiet machine.

Making such calculations in store is tough, and going home to check on the home computer was discouraged as we were told the shop could do us a special price if we bought during the same day.

The EECA website provides a guide for many different kinds of appliances, including fridges, freezers and washing machines.

Similarly, the EECA website shows for a washing machine with a 7kg capacity used three times a week, with 60 per cent of the washes on the cold setting, the annual running cost would be $42.51 for a one star machine, down to a $13.77 for a four star one.

Doing the research yourself before heading out is important as shoppers may not find store staff particularly knowledgeable about the star ratings.

When Fairfax Media visited appliance stores run by Harvey Norman and Noel Leeming staff were pleasant but unable to give us indications of the different costs of running machines with different star ratings.

Instead, the sales patter was aimed at encouraging the purchase of the more expensive machines, stressing the looks, features and durability of the more expensive models.

Eddie Thompson, manager for efficient products at EECA said preliminary data to the end of June from its continuous consumer monitor showed high awareness of energy labels. Awareness of the Energy Star mark is 81 per cent and awareness of the Energy Rating Label is 95 per cent.

'This high level of awareness is reflected in increased sales of Energy Star qualified products,' he said.

And it seems that many people are swayed by the labels.

'Energy Star qualified white ware and heat pumps made up 15.6 per cent of sales in 2010 but this increased to 59 per cent in 2014,' Thompson said.

The retail sales industry is marked by a high turnover of staff. This meant that shoppers could find themselves talking to sales assistants with lower levels of knowledge.

'EECA is aware there is variation in understanding about Energy Star and the Energy Rating among retail outlets across the country,' but Thompson said EECA was working hard to change that. 'EECA works with retailers to provide training for sales staff three times a year. Last October, EECA set up a system of 308 energy leaders in retail outlets with responsibility for training staff about labels.'

Neither of the assistants we spoke to mentioned the other benefit of the more efficient machines- green dividend of knowing that that a more efficient machine pollutes less.

The EECA website gives an indication of how high that green dividend is.

For a 5kg capacity drier run twice a week in the colder half of the year, and not at all in the warmer half (sunlight is free) would see around 40 kilogrammes of greenhouse gases emitted by a one star machine, compared to just 20kg for a five star machine.

USING APPLIANCES SMARTLY

The Energy Efficiency and Conservation Authority (EECA) has some tips to keep down the costs of running your appliances. It says any appliance using more electricity than it needs to, even what might seem a relatively small amount each hour, is going to add a sizeable chunk to your electricity bill over a year.

1. Replace, or repair faulty appliances: If your power bill suddenly jumps, it could be because an appliance has gone on the blink. It gives the example of a fridge with bad door seals, or a broken thermostat. Such faults could double or triple the annual cost of using that fridge.

2. Turn appliances off when they are not in use: 'The two biggest culprits here are heat pumps and heated towel rails,' EECA says. 'Using them only when you need them can save you a decent amount of money every year.' It is easy to forget to switch things off. Timers and thermostats can help.

3. Standby power use: Most appliances that can be turned on with a remote control use electricity, 'slowly but steadily' even when not being used, and often without you realising it. 'Overnight, microwaves, TVs and DVD players continuously consume electricity. If your appliances' lights and clocks are on, they're using electricity,' EECA says. Turn them off at the wall.

4. Shop around for power: Don't assume your power provider is the cheapest. Visit the Powerswitch website. Even if you are not planning on switching, check to see whether you are on the best plan with your current electricity provider.