Since the early 1990s, the small blue Energy Star label has been seen on countless home appliances, electronics, and even buildings throughout the U.S. However, as the Trump administration contemplates ending this program, it’s essential to understand what this government-backed label represents and why it has become one of the country’s most recognized environmental certifications.

Launched by the U.S. Environmental Protection Agency in 1992 and later developed in collaboration with the Department of Energy, the Energy Star program aims to help consumers and businesses easily select energy-efficient products, which can cut costs without compromising quality or performance.

As a researcher in energy conservation, I have examined the evolution of the Energy Star program and its impact on the public and the environment.

According to the EPA, it has helped consumers save an estimated $15 billion annually on energy bills since its launch, providing substantial returns on a program that costs taxpayers about $32 million each year.

How Energy Star Works

When you spot an Energy Star label, it signifies that the product has passed strict energy efficiency standards set by the EPA in conjunction with the Department of Energy. These agencies assess energy consumption levels and collaborate with manufacturers and utilities to identify the best ways to make improvements.

Energy Star products typically consume significantly less energy—often between 10% and 50% less—leading to substantial savings for consumers, especially when multiple Energy Star appliances are used in a household or building.

Energy Star does not produce or sell items; instead, it operates as a trusted certifier that offers consumers and businesses clear information and labeling. Additionally, it provides guidance for estimating energy savings and comparing long-term costs, making it easier to choose effective and affordable options. Manufacturers who join Energy Star aim to enhance their environmental image and expand their market presence, motivating them to meet the program’s efficiency standards.

Today, you’ll find the Energy Star label on refrigerators, dishwashers, laptops, and even newly constructed homes. The government estimates that over 90% of American households recognize the label.

Challenges in Choosing Efficient Products

Energy Star aims to address the issues that often prevent people from purchasing energy-efficient products.

One significant hurdle is that energy-efficient models typically have higher purchase prices. Though they save money in the long run, the initial cost can deter buyers. Energy Star counters this by clearly showing potential savings over the product’s lifetime compared to non-certified items and by offering rebates to lower the upfront price.

Another challenge involves “split incentives.” For instance, landlords may hesitate to buy energy-efficient appliances if tenants will benefit from the utility bill savings. Meanwhile, renters might be reluctant to invest in appliances in a property they don’t own. Energy Star bridges this gap by encouraging whole-building certifications, prompting landlords to enhance energy efficiency to make their properties more appealing to renters.

The wide range of available appliances can also create confusion among consumers. Those who rely solely on manufacturers’ promotional materials may struggle to discern which products truly offer better energy efficiency. The Energy Star label simplifies this comparison: if a product bears the label, it’s one of the most efficient options available.

Many consumers are skeptical of manufacturers’ claims, particularly concerning new technologies or eco-friendly promises. Because Energy Star is a government program, it is viewed as more credible and impartial than private labels, reassuring people that the certification is grounded in scientific assessment rather than sales tactics.

Lastly, Energy Star assists in addressing the lack of awareness many have about how much energy their appliances consume or how their choices impact climate change. By connecting everyday products with broader environmental issues, Energy Star enables consumers to grasp the consequences of their choices without requiring them to be energy experts.

Real Impact of the Program

Since its inception, over 800,000 appliance models have achieved Energy Star certification based on their product type criteria.

The effective principles that lend value to the label for consumer products—independent validation, clear metrics, and a focus on results—are also highly applicable in real estate. Nearly 45,000 commercial buildings and industrial plants have received certification, alongside over 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, making up more than 12% of all new residential construction across the country.

Energy Star-certified homes are designed to be at least 10% more energy-efficient than those built to standard codes, featuring better insulation, energy-efficient windows and lighting, and appliances. These improvements can result in greater comfort, quality, and cost savings over time for homeowners.

Commercial buildings, which contribute about 18% of U.S. energy consumption, have similarly benefited. Research I participated in found that Energy Star-certified commercial properties use, on average, 19% less energy than those without certification.

The Importance of Government Leadership

Energy Star’s government affiliation enhances its credibility as a more neutral, science-driven information source compared to commercial labels.

Government connections also provide significant scale: by mandating that federal agencies purchase only Energy Star-certified products, the federal government can prompt manufacturers to innovate. For instance, a 1993 federal executive order required government agencies to buy only Energy Star-certified computers, leading to widespread adoption of energy-saving sleep features in computers.

A Quiet Success Story in Energy and Climate

Energy Star may not be a headline-grabbing initiative, and it does not rely on regulations or mandates. Yet, it has quietly emerged as one of the most effective tools for enhancing energy efficiency across homes, offices, and public buildings in the U.S.

However, the program does have its challenges. Some critics argue that not all certified products achieve high-efficiency performance. Others mention that the advantages of Energy Star are more readily available to wealthier consumers who can manage the initial investment, even with available rebates. Additionally, the EPA has faced issues with managing certification processes and staying current with the latest technological advancements.

In a time of rising energy costs and climate challenges, Energy Star stands out as an effective, nonpartisan program empowering individuals, businesses, and communities to save money, reduce emissions, and contribute to a sustainable future—one smart choice at a time.