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Since the early 1990s, the small blue Energy Star label has appeared on millions of household appliances and electronics across the United States. But as the Trump administration considers terminating some or all of the program, it is worth examining what this government-backed label means and why it has become one of the most recognizable environmental certifications in the country.
Energy Star was launched by the U.S. Environmental Protection Agency (EPA) in 1992 and later expanded in partnership with the Department of Energy. The goal of the program is to make it easier for consumers and businesses to choose energy-efficient products, helping them reduce energy use and save money without sacrificing quality or performance.
As a scholar of energy conservation, I have studied the Energy Star program’s development and public impact, including how it has shaped consumer behavior and environmental outcomes. According to the EPA, since its inception, Energy Star has saved consumers an average of $15 billion annually on energy costs—a massive return on a program that costs taxpayers about $32 million per year.
### How Energy Star Works
When you see an Energy Star label on a product, it means the product meets strict energy efficiency standards set by the EPA in collaboration with the U.S. Department of Energy. The federal agencies test how much energy appliances use and consult with product manufacturers, utilities, and others to figure out how best to improve products and determine cost-effective changes.
Products that earn the Energy Star certification typically use significantly less energy than standard models—often between 10% and 50% less. The energy and financial savings can add up quickly, especially when homes or buildings have multiple Energy Star appliances and systems.
Energy Star itself does not manufacture or sell products. Instead, it acts as a trusted third-party certifier, providing consumers and businesses with reliable information and clear labeling. It also offers tools to help people estimate energy savings and compare long-term costs, making it easier to identify high-performing, cost-effective options.
Manufacturers participating in Energy Star seek to improve their environmental reputation and increase their market share, giving them a strong incentive to meet the program’s efficiency criteria. Today, the label appears on refrigerators, dishwashers, laptops, commercial buildings, and even newly built homes. The government says people in more than 90% of American households recognize the Energy Star label.
### People Don’t Always Choose Efficient Products
Energy Star seeks to tackle a wide range of problems that can result in people deciding not to buy energy-efficient products. One problem is higher up-front costs for efficient models, which can discourage buyers despite long-term savings. Energy Star helps counter this by clearly showing how much money can be saved on energy costs over the lifetime of the product and by offering rebates that reduce initial expenses.
Another issue involves “split incentives,” where landlords might not want to pay a higher price up front for energy-efficient appliances if tenants are the ones who will save money on utility bills. Energy Star tries to bridge this divide by promoting whole-building certifications, which encourage landlords to invest in their buildings’ energy efficiency with the goal of making their properties more attractive to tenants.
The countless varieties of refrigerators, dishwashers, air conditioners, and other items on the market can also create confusion. Consumers who just look at manufacturers’ promotional material may find it very hard to determine which appliances truly deliver better energy efficiency. The Energy Star label makes this comparison easier: If the label is there, it is among the most efficient choices available.
Consumers are often skeptical of manufacturers’ claims, especially when it comes to new technologies or environmental promises. Energy Star’s status as a program backed by the government rather than a private company gives it a level of independence and credibility that many other labels lack. People know the certification is based on science, not sales tactics.
Lastly, Energy Star helps overcome the problem that many people are not aware of how much energy their appliances consume or how those choices contribute to climate change. By connecting everyday products to larger environmental outcomes, Energy Star helps consumers understand the effects of their decisions without needing to become energy experts.
### The Program Delivers Real Results
Since its inception, more than 800,000 appliance models have earned Energy Star certification based on criteria for their type of product. The same principles that make the label valuable for consumer appliances— independent certification, clear metrics, and a focus on results—have proved equally effective in real estate.
Nearly 45,000 commercial buildings and industrial plants have earned certification, and there have been more than 2.5 million Energy Star-certified homes and apartments built in the U.S. In 2023 alone, over 190,000 new homes and apartments were certified, representing more than 12% of all new residential construction nationwide.
Energy Star-certified homes are designed to be at least 10% more energy efficient than those built to standard building codes, with better insulation and windows and energy-efficient lights and appliances. These enhancements can translate to better quality, comfort, and long-term cost savings for homeowners.
Commercial buildings, which account for about 18% of total U.S. energy use, have also benefited substantially. Research I was involved in found that certified commercial buildings use an average of 19% less energy than their noncertified counterparts.
### Why Government Leadership Matters
Energy Star’s status as a government-led label contributes to its credibility as a more neutral and science-based source of information compared to commercial labels. Energy Star’s government connections also bring scale: By requiring federal purchases to have Energy Star certifications, the federal government can influence manufacturers. For example, a 1993 federal executive order required only Energy Star-certified computers, which required them to include energy-saving sleep functions.
Manufacturers began including these features so they could sell their products to the government. Consumers soon came to expect sleep features on all computers.
### A Quiet Success Story in Energy and Climate
Energy Star does not grab headlines but has quietly become one of the most effective tools the U.S. has for improving energy efficiency across homes, offices, and public buildings. That said, the program is not without its limitations. Some critics have pointed out that not all certified products consistently perform at the highest efficiency levels. Others note that the benefits are more accessible to wealthier consumers who can afford up-front investments, even with available rebates. And the EPA itself has sometimes struggled to manage the certification process and update standards in line with the latest technological advances.
At a time when energy costs and climate concerns are rising, Energy Star stands out as a rare example of a practical, nonpartisan program that delivers real benefits. It helps individuals, businesses, and communities save money, lower emissions, and take part in a more sustainable future— one smart decision at a time.
