ENERGY GUIDE LABELS:
CAN YOU FIGURE THEM OUT?

GOAL:
The student will become aware of energy guide labels and will be able to use them in making energy conscious appliance choices.

OBJECTIVES:
The student will be able to:
1. Explain why some appliances have energy guide labels and list the appliances upon which these labels are required.

2. Interpret the information found on energy guide labels.

3. Use energy label and cost information to determine which appliance is the best energy buy.

LESSON/INFORMATION:
Many appliances on the market have yellow and black energy guide labels that can help consumers save energy and money. These labels are required by federal law on the following major appliances as of May 19, 1980.

Labels will be required on central air conditioners and heat pumps effective January 1, 1992.

Other appliances -- such as microwaves, televisions, clothes dryers, and humidifiers -- do not require these labels. This is because there is little variation in operating costs for different brands and models of these appliances.

Labels are not required on small appliances -- such as toasters, blenders, and coffee makers -- as these appliances use less energy to operate, compared to the major appliances listed above.

Energy guide labels list the average yearly cost of operating the appliance. That is the large number printed in the middle of the label. This cost is an average since energy costs vary by location. Contact your local utility company to find out the residential cost of gas and electricity in your area.

By considering the initial cost of an appliance, plus the operating cost, it is easy to figure out which brand or model is the best buy.

ACTIVITY 1:
Refer to the label below to answer the following questions. This label would be found on an appliance that operates with electricity.

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1. Which type of appliance would this label be found on?

2. On the average, how much does it cost to operate this appliance for one year?

3. For other appliances of this type, what are the lowest and highest operating costs? (Hint: Look at the thick black line with arrows and dollar amounts on the ends.)

4. How energy efficient is this model in reference to others of its type? (Where does it fall on that black line?)

5. What is the yearly cost to operate this appliance at $.04 a kWh? at $.12 a kWh?

Now that you know the importance of information found on energy guide labels, it is time to put this information to work for you.

Is it better to buy a $500 washer that costs $40 a year to operate or a $400 washer that costs $70 to operate? To answer this question, you must figure out which purchase will save more money over the life of the appliance. The following equation can help you make this decision.

EXAMPLE:
Which washer should you buy? Which costs less in the long run?
Model A
Model B
Purchase Price $500 $400
Yearly Cost to Operate $ 40 $ 70

Step 1:
Subtract the purchase price of the less expensive model from the more expensive one.
$500 - $400 = $100 Initial price difference

Step 2:
Subtract the lower yearly operating cost from the higher one.
$70 - $40 = $30 Yearly energy savings

Step 3:
Divide the difference in initial price ($100) by the difference in operating cost ($30).
$100 ÷ $30 = 3.33 years Recovery of higher initial cost

This answer tells you that it will take 3 1/3 years for the lower operating cost to offset the higher purchase price of Model A. Since the washer will probably last 15 years, and you save $30 a year, you will save $450 in operating costs over the life of Model A. Subtract the extra $100 you paid for model A, and you save $350 over the life of the washer by choosing this model.

ACTIVITY 2:
Complete these problems using the steps outlined above.

1. Which is the better buy? A refrigerator that costs $700 and $90 to operate, or a refrigerator that costs $900 and $80 to operate. A refrigerator will last 15 years.






2. Which is the better buy? A furnace that costs $1000 and$120 to operate, or a furnace that costs $1200 and $70 to operate? A freezer will last 20 years.






RESOURCES:
Appliance Labeling. U. S. Department of Energy, n.d.

Energy Guide for Secondary Home Economics Classes. U. S. Department of Energy, 1980.

INFORMATION CHECK
1. Check off the following appliances that require energy guide labels as of May 19, 1980.
_____Ovens / ranges
_____Microwave ovens
_____Room air conditioners
_____Central air conditioners
_____Clothes washers
_____Coffee makers
_____Refrigerators
_____Furnaces
_____Toasters
_____Dishwashers
_____Clothes dryers
_____Freezers

2. Check off the following information that is found on an energy guide label.
_____Appliance type, model, and capacity
_____Initial cost of the appliance
_____Exact yearly operating cost
_____Range of yearly operating costs for appliances of this type
_____Yearly operating cost at various kWh charges
_____Operating instructions for the appliance
_____Warning not to remove label.

3. Complete this problem using the three step method learned in this module. Show all steps and all work.

Which is the best buy in refrigerator freezers? Expect this appliance to last about 13 years.
Model A
Model B
Purchase Price $1300 $1100
Yearly Cost to Operate $120 $150

Step 1:





Step 2:





Step 3:





Which model will you buy? Why?





TEACHER'S NOTES
ACTIVITY 1:
1. refrigerator - freezer

2. $91

3. $68 to $132

4. The cost to operate this model is almost average, a little closer to the less expensive end of the scale.

5. $73
$218

ACTIVITY 2:
1. Which refrigerator to buy?
Model A
Model B
Purchase Price $700 $900
Operating Cost $ 90 $ 80

Step 1: $900 - $700 = $200
Step 2: $90 - $80 = $ 10
Step 3: $200 - $10 = 20 years

It would take 20 years for the more expensive model to payoff. As the refrigerator will only last 15, buy model A -- the $700 model.

2. Which freezer to buy?
Model A
Model B
Purchase Price $1000 $1200
Operating Cost $120 $ 70

Step 1: $1200 - $1000 = $200
Step 2: $120 - $70 = $50
Step 3: $200 - $50 = 4 years

It would take 4 years for the more expensive model to pay for itself; after that you would save $50 a year in operating costs. As the freezer will last 20 years, buy model B -- the $1200 model.

DEFINITIONS:
1. kWh - This refers to kilowatt hour, a measurement of electricity. You pay for electricity at a certain rate per kilowatt hour.

2. Yearly operating cost - This refers to how much money you will pay a year in gas or electricity to operate this appliance.

ANSWERS TO INFORMATION CHECK:
1. The following appliances should be checked off:

Room air conditioners
Furnaces
Clothes washers
Dishwashers
Refrigerators
Freezers

2. The following types of information should be checked off:

Appliance type, model, and capacity
Range of operating costs for appliances of this type
Yearly operating costs at various kWh
Warning not to remove label

3.
Step 1: $1300 - $1110 = $200
Step 2: $150 - $120 = $30
Step 3: $200 - $30 = 6.6 years

It will take 6.6 years for the higher initial cost of model A to be recovered by lowering operating costs. As the refrigerator freezer will last 13 years, Model A is the best buy.

Comments or questions to: TechAsmt@LA.GOV

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