What is the energy rating system?  

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The Equipment Energy Efficiency (E3) program is a cross jurisdictional program through which the Australian Government, states and territories and the New Zealand Government collaborate to deliver a:

• Single, integrated program on energy efficiency standards and 
• Energy labelling for equipment and appliances

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What are the program objectives?  

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Program Objectives

To reduce energy bills for households and businesses in a cost effective way by driving improvements to the energy efficiency of new appliances and equipment sold;

To improve the energy efficiency of new appliances and equipment that use energy and to also improve the energy performance of products that have an impact on energy consumption; and to reduce appliance and equipment related greenhouse gas emissions through a process which complements other actions by jurisdictions.

https://www.energyrating.gov.au/about-e3-program

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Star rating

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The star rating is about energy efficiency – that is how efficient a model is relative to other models of the same size.

More stars means more efficient – when compared to other models of the same size. Most products are given between 1 and 6 stars.

Tip: Always choose which size (or capacity) model you need first, then use the star rating to compare them.

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How do we select the best appliance?

When selecting an appliance there is going to be a price difference between a more efficient option, say 4.5 stars compared to a less efficient one.

But questions need to be asked:

• What is the actual price difference between two models with similar capacity?
• How many years will it take to recoup the difference if purchasing the more efficient model?
• What about the price of electricity increasing? How do I factor this in?
• What if I invest the price difference between models, is this a good way to go?
• What about the warranty?

Energy rating examples: purchase $, cheapest 

I have put together a list of washing machines that outline the cost of the units, the star rating, capacity, cost to run per year and other indicators.

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For example the cheapest washing machine in the list was not the least efficient. The Hisense purchase price was $699, 4.5 star rating and cost to run per year per kg was $8.49.  Compared to the Miele at $2,299, with the same 4.5 star rating.

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Big differences in cost!  

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In our example the difference between the cheapest washing machine and the most expensive is $1600. 

So we need to ask lots of questions.

There are other things to consider?  

We have determined the different prices for the washing machines but what about other factors:

• Cost to run per year
• Star rating
• Purchase cost per kilogram
• What else can I do with my money?

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Cost to run per year  

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The cost to run per year is an ongoing one. 

I have assumed a price of $0.28/kWh and have multiplied this with the supplied kWh consumption per year and what has emerged is the following:

• The second most expensive washing to purchase is the most efficient electricity consumption wise
• The cheapest washing machine  is no. 5 on the list of 10, consumption wise
• The highest consumption is from a machine that is the third most expensive

What accounts for this disparity? 

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Star rating  

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This is an interesting area as the star rating system is, effectively, a range. In the examples we have presented the models range from 4 to 5 stars:

• For example we have six example of 4.5 star ratings ranging from 261 kWh/year for the Miele
• Through to 284 kWh/year for the LG washing machine
• Up to 320 kWh/year for the Samsung

The star rating is simply a guide.

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Warranty  

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The warranties of the selected machines would obviously vary but under consumer law you would be looking at a minimum of 2 years anyway. The question is how long is the warranty of the most expensive machine compared to the cheapest?

• Most expensive was the Miele, warranty of 24 months
• The cheapest was the Hisense warranty of 36 months
• Mid range Fisher & Paykel warranty of 24 months

Hmm. Interesting.

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What else can I do with my money?  

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So we have a range of prices and yearly operating costs and pretty similar warranties. 

So the question is if I do buy a more expensive machine, how long would it take to pay off and/or will it be paid off within the warranty period?

Also what if I selected a cheaper model and invested my money in the bank?

Would this be a better option?

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Lets select two washing machines  

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Have selected the Ariston and the AEG. A fair difference in price and a considerable difference to run per year based on $0.28 kWh.

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The results

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If the more expensive option was selected it would take 30 years to recoup the difference in price via the savings. Now we have made some assumptions that include:

• Price of electricity is $0.28 kWh
• Price increase of 2% per year
• Can invest the difference @1.5% 

Of course we can look at a more realistic interest rate like 1%.

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Invest at 1%

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At 1% still ahead on investing the difference and the reality is if a washing machine lasts for 30 years that’s a heck of a washing machine!!

Right from the word go the suggestion is to purchase the cheaper model

So what price does the AEG have to be to achieve, say a 5- 6 year payback?

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The Answer

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The answer is $1156 but even then if we could access a 7% return ( highly unlikely ATM) on investing the difference between the two washing machines the calculations suggest buying the less efficient washing machine!

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Conclusion

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When looking at washing machines look at:

• The star rating of the appliance
• Then the kWh used per year
• Calculate the cost per volume of your washing machine to run over different time periods
• Don’t forget the time value of money, warranty, replacement costs and other factors.

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If you’d like to see more of what Greenwood Solutions get up to in the real world of renewable energy, solar, battery storage and grid protection check out the following pages:

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https://www.greenwoodsolutions.com.au/industry 

https://www.greenwoodsolutions.com.au/commercial

https://www.greenwoodsolutions.com.au/commercial/customer-stories

https://www.greenwoodsolutions.com.au/news