Wish Upon an Energy Star

Jun 29 - Dealerscope

 

Those cost-saving, environmentally friendly products could have strong appeal in the summer months

The combination of rising environmental consciousness and ever- steeper energy bills could send more consumers than ever to retailers in search of energy-conserving appliances and electronics. Fortunately for dealers, there are plenty of certified energy- saving prodnets available to sell.

Those products are part of a voluntary, government-backed program called Energy Star, which the organization says helps businesses and consumers "protect the environment through superior energy efficiency." To earn the Energy Star seal, products must meet strict energy efficiency guidelines set by the Environmental Protection Agency (EPA) and the U.S. Department of Energy. The EPA introduced Energy Star in 1992; the first products bearing the label were computers and monitors. Later, additional office products and residential heating and cooling systems came on board, and most recently, major appliances, lighting and home electronics were added to the program. Even new homes are being Energy Star-certified.

The government claims that in 2003, Americans using Energy Star- certified products saved enough energy to power 20 million homes and avoid greenhouse gas emissions equivalent to those from 18 million cars-all while saving $9 billion. The government also claims that Energy Star products can save families about a third on their energy bill with similar savings of greenhouse gas emissions, without sacrificing features, style or comfort.

Appliance brands such as Whirlpool, Maytag, Frigidaire, GE and many others offer a wide array of Energy Star-compliant dishwashers, refrigerators and washers. Energy Star versions of room air conditioners, dehumidifiers and lighting products are available as well, and a growing number of consumer electronics products, such as TVs, DVD players, VCRs, home audio units and cordless phones, have joined the Energy Star campaign. In all, 40 different categories of products, from appliances to heating and cooling products, home electronics to lighting, office equipment to commercial products, are covered by Energy Star. Over 1,400 manufacturers and 28,000 products are part of the program.

Major appliances, however, are where Energy Star possesses the most traction for dealers. Many consumers are acutely aware that appliances, unlike TVs for example, devour quite a bit of electricity and hot water, and will likely be receptive to energy- saving products, so long as they don't have to sacrifice performance.

With the summer upon the industry and energy costs ever on the rise, those refrigerators and air conditioners that bear the Energy Star label should be pointed out to customers who may be looking to replace refrigerators and air conditioners they bought in the 1980s and 1990s. They may be interested to hear about the energy savings that these newer, compliant products can provide.

Annual Savings with an Energy Star Appliance Compared to a Typical New Non-Energy Star or Existing Appliance

Maytag's Neptune Washers are Energy Star-certified. Dryers are not part of the Energy Star program.

Some observers, however, say that products sporting the logo provide only minor energy savings. But according to EPA officials we contacted, critics largely miss the point.

Maria Vargas, the EPA's spokesperson for the Energy Star program, says different products within the program are held to various standards, which are tweaked periodically to keep them ever more efficient. Overall, she says, the energy savings are very real with Energy Star appliances, although they depend on where you live, what you pay per kiloWatt-hour for energy, and how much you use the appliance.

Nevertheless, cost savings versus the customer's existing appliances, or new non-compliant appliances, vary from category to category (see chart), with washers clearly leading the way over refrigerators and dishwashers; room air conditioners savings vary widely depending on the age and size of the unit. Dealers, says Vargas, should note the energy and cost savings of Energy Star, but she concedes, "you have to be a little bit careful of overselling it."

Vargas responds to arguments that too many products are Energy Star-certified by saying that the program had a choice to make early on. "We didn't want the products to be too boutique-y, as to be out of reach for most consumers," she says. Instead, the plan is to hold manufacturers to achievable standards that would allow the majority of American consumers to buy into the program, while tweaking standards over time to reflect the rising bar of the cutting-edge in energy efficiency.

Still, the EPA's most recent numbers show that only 17 percent of refrigerators, 10 percent of washers, 20 percent of dishwashers, and 13 percent of room air conditioners sold in 2000 were Energy Star- compliant. Those numbers likely have risen over the ensuing four years, and they show that Energy Star is a selling point.

Vargas adds that Energy Star products surrender nothing to non- compliant products in terms of features or performance, a crucial selling point. Simply put, says Vargas, "they do more with less. We never talk about conservation. We talk about doing more with less."

EPA Marketing Manager Kate Lewis notes that summer will be an enhanced activity period for Energy Star, with a promotion running through July 31 called the 2004 Energy Star Appliance Campaign to offer localized and national programs such as vendor-backed coupons, rebates and discounts, as well as utility-sponsored rebates. Tools to encourage Energy Star upselling include training presentations, printable pocket training cards, and fact sheets by category. For more information, visit www.energystar.gov.

Energy Star

Specs for Appliances

Sales staff can cite these stats when selling Energy Star to customers:

Washers - Minimum Modified Energy Factor (MEF) of 1.42.

Dishwashers - At least 25 percent more efficient than minimum federal government standards.

Refrigerators, 7.75 cubic feet or greater - At least 15 percent more energy-efficient than the minimum federal government standard.

Freezers, 7.75 cubic feet or greater - At least 10 percent more energy-efficient than the minimum federal government standard.

Compact Refrigerators and Freezers (less than 7.75 cubic feet and 36 inches or less in height) - At least 20 percent more energy- efficient than the minimum federal government standard.

Room Air Conditioners - At least 10 percent more energy- efficient than minimum federal government standards.

Source: www.energystar.gov

Copyright North American Publishing Company Jun 2004