The Energy Rating Label or Star rating label shows two components of an appliance – energy efficiency and energy consumption.

The number of stars illustrated on an appliance indicates the level of energy efficiency, relative to other models of the same size. As a rule of thumb, the more stars = more efficiency (when compared to other models of the same size). Generally, products are given a rating from 1 – 6, however, some models with extreme efficiency can have up to 10 stars! The energy rating label also indicates the energy consumption of the appliance. This shows how much electricity the model uses and allows you to compare any model (regardless of the size) as it is based on the electricity capacity. The lower this number is, the less a model costs to run – saving you money on your electricity bill.

Helpful hints:

It is important to take into account both the number of stars and the energy consumption. If you don’t look at the capacity and just the highest number of stars, you could end up paying hundreds on electricity bills.
Calculate the running cost of the model by dividing the energy consumption number by 4. For example, if a Dishwasher had an Energy Rating Label that showed it uses 400 kWh, it will roughly cost $100 per year to run!
Compare the rating label on products of the same size or capacity – this allows you to compare apples with apples and make an informed decision.
 It is ok to purchase a 1-star model, however, it will not be as efficient as other models of the same size.

How often the machine is used will vary between households as well as the electricity rates amongst regions and providers. Use the Energy Rating Calculator for exact results https://www.energyrating.gov.au/calculator.

References:
Energyrating.gov.au. (2020). ‘The Energy Rating Label.’ Available at: https://www.energyrating.gov.au/label (Accessed 16 July 2021).
Image source: Better Homes and Gardens (2020). ‘Reader reno: A Scandi-style budget laundry makeover for $1300’. Available at https://www.bhg.com.au/bunnings-laundry-makeover-1300 (Accessed 19 July 2021).