Last updated: 27 October 2026
An energy star rating tells you two things: how efficient an appliance is compared with similar models (1 to 10 stars), and how many kilowatt hours (kWh) it uses in a year. To turn that into dollars, multiply the kWh by your electricity rate.
At the Victorian Default Offer rate for the United Energy zone, 27.35c per kWh, every 100 kWh on the label costs $27.35 a year, or $273.50 over a 10-year life. On the government’s own 350 litre fridge example, each extra star is worth about $15 a year.
Key takeaways
- The Energy Rating Label shows a star rating and the energy consumption in kWh a year. The kWh figure is what you pay for.
- Stars only compare models of a similar size and features. A big 5-star fridge can cost more to run than a small 5-star fridge.
- Annual running cost = kWh a year × your electricity rate. At 27.35c, the government’s 350 litre fridge example saves $44.31 a year going from 3 stars to 6 stars.
- A 5-star fridge from the 2000s would only score 2 or 3 stars today, and an older fridge could easily cost $200 or more a year to run.
- The biggest savings are on fixed appliances: a heat pump uses up to 75% less electricity than a standard electric storage system (Victorian Government).
On this page
- What the energy star rating actually tells you
- Where the kWh figure on the label comes from
- Which appliances carry the label (and the air conditioner version)
- Turning the label into dollars at Victorian prices
- What one star is worth: worked examples
- Old appliances: why yesterday’s 5 stars cost more today
- The big ones: heating, cooling and hot water
- Victorian discounts on efficient appliances
- Getting rid of the old one
- Energy star rating questions
- How Helcro Electrical can help
- How we checked this page
What the energy star rating actually tells you
The official name is the Energy Rating Label. It has been on Australian appliances since the mid 1990s and is regulated by the GEMS Regulator. Every label gives you two numbers:
- The star rating: how efficient the model is, from 1 to 10 stars.
- The energy consumption: how many kWh a year the model uses in the standard test.
The label may be a 6-star label, a “super efficiency” 10-star label for appliances rated 7 stars or higher, or a 10-star label for swimming pool pumps. Models with more than 6 stars are called super-efficient. So a 6 out of 10 is not a middling score on a 6-star label: it is full marks on that version of the label.
Stars only compare like with like. More stars means more efficient when compared with other models of a similar size and features. A 10 kg and a 6 kg washing machine can both carry 5 stars, and the 10 kg machine still costs more to run, particularly if you are not washing a full load. YourHome makes the same point for fridges: a larger model with the same star rating as a smaller one generally uses more electricity.
So can you compare the stars on a 313 litre fridge with a 529 litre one? Not usefully. Compare the kWh figures instead: that number is what you pay for.
Where the kWh figure on the label comes from
The energy consumption figure is based on standardised testing, required by law and done to official standards. Each product is tested on an assumed pattern of typical use, and the assumption is printed on the label. If you use the appliance more or less than that, your real use will be higher or lower.
| Appliance | Use assumed on the label |
|---|---|
| Clothes dryer | 1 full load a week |
| Washing machine | 7 warm washes a week, plus standby |
| Dishwasher | 7 uses a week, plus standby |
| Fridge or freezer | running all day, every day |
| Pool pump | 50,000 litres a day |
| TV or computer monitor | 10 hours on and 14 hours on standby a day |
So a family running the dryer every day uses several times the label’s figure, and a household that watches two hours of TV a night uses less than the label says.
Newer labels on some appliances, such as clothes dryers, also show a Program Time, the minutes the tested program takes.
Which appliances carry the label (and the air conditioner version)
In a store, the Energy Rating Label is mandatory on:
- clothes dryers and clothes washers
- computer monitors and TVs
- dishwashers
- household fridges and freezers
- pool pumps
- single-phase, non-ducted (unitary or single-split) air conditioners up to 30 kW
Online retailers do not have to show it. Dishwashers and washing machines must also carry a Water Rating Label.
Air conditioners use the Zoned Energy Rating Label. It gives heating and cooling stars for three climate zones (hot, average and cold), the kWh a year in each zone, and the noise level in decibels, inside and outside. Melbourne is in the cold zone, so read the cold-zone figures, and compare the cold-zone heating stars when choosing a reverse cycle split system.
Gas heaters are not covered by the Energy Rating Label; certain gas heaters carry a separate gas label. (The American ENERGY STAR label is a different scheme again; see the questions below.)
Turning the label into dollars at Victorian prices
The government’s formula is simple:
Annual running cost = energy consumption (kWh a year) × your electricity rate ($ per kWh)
Your rate is on your electricity bill, in the section that shows how the charges were calculated. If you don’t have a bill handy, use the Victorian Default Offer. For 1 July 2026 to 30 June 2027, the Essential Services Commission’s default offer for households in the United Energy zone is 27.35c per kWh including GST on a flat tariff.
Our service area in Melbourne South East, from Brighton and Bentleigh to Cheltenham and Frankston, is in the United Energy zone. Across Victoria, default offer prices came down by an average of about 5% from 1 July 2026.
The ESC says the default offer will not necessarily be the lowest price available, so your own rate may be lower. Victorian Energy Compare, the government’s comparison site, shows what other offers cost.
Why the label never quite matches your bill:
- The supply charge is fixed. The United Energy default offer charges $1.1912 a day whatever you run, so it is not part of any appliance’s running cost.
- Your use differs from the test. See the assumptions above.
- Time-of-use plans price each hour differently. On the United Energy time-of-use default offer, peak (4pm to 9pm) is 40.32c per kWh, off-peak (9pm to 11am) is 22.14c and the ‘solar soak’ rate (11am to 4pm) is 17.26c, all including GST.
To compare specific models side by side, use the government’s Energy Rating Calculator. It gives estimated running costs and star ratings, and YourHome says it lets you compare the total cost of an appliance, upfront and running costs, over a lifetime assumed at 10 years.
Ten years is the average lifespan of most major appliances (energy.gov.au), and YourHome notes that running costs can easily exceed an appliance’s original purchase price.
What one star is worth: worked examples
More stars means less energy. The government’s own fridge example on the Energy Rating site goes from 3 stars to 6 stars and from 349 kWh to 187 kWh: 162 kWh less, or 54 kWh for each extra star. At 27.35c, that is about $15 a year per star.
Here are the government’s published examples, re-priced at the 27.35c Victorian rate. The kWh figures are theirs; the dollar figures are our arithmetic.
| Example (source) | Lower-star model | Higher-star model | Saving a year |
|---|---|---|---|
| 350 litre upright fridge (Energy Rating) | 3 stars, 349 kWh: $95.45 | 6 stars, 187 kWh: $51.14 | $44.31 |
| 440 litre fridge (YourHome) | 2 stars, 427 kWh: $116.78 | 6 stars, 232 kWh: $63.45 | $53.33 |
| 8 kg clothes dryer, one load a week (YourHome) | 2 stars, 355 kWh: $97.09 | 8 stars, 135 kWh: $36.92 | $60.17 |
| 55-inch TV (energy.gov.au) | 3 stars, 520 kWh: $142.22 | 7 stars, 213 kWh: $58.26 | $83.96 |
Over a 10-year life, the fridge in the first row saves about $443. The dryer figure assumes one load a week, as the label does; if you run it most days, the saving is several times larger. And the TV row is not a surprise: the label assumes a TV is on for 10 hours a day.
How much does a fridge cost to run?
Multiply the kWh on its label by your rate. At 27.35c, the government’s 3-star 350 litre fridge (349 kWh a year, about 0.96 kWh a day) costs $95.45 a year, or about 26c a day; the 6-star one (187 kWh, about 0.51 kWh a day) costs $51.14 a year, or about 14c a day. An older fridge could easily cost $200 or more a year (YourHome).
Is the cheaper appliance really cheaper?
Not always: add 10 years of running costs to the price tag before comparing two models.
Which fridges have a 5 or 6 star energy rating?
We don’t recommend models. To compare fridge energy ratings, the Energy Rating Calculator lets you compare fridges by energy rating and volume, with a 10-year running cost for each model.
Old appliances: why yesterday’s 5 stars cost more today
The stars on an old appliance are not today’s stars. Ratings and their formulas are revised as appliances improve, and YourHome notes that fridges and freezers have had strict minimum energy performance standards since 1999. According to YourHome, a 5-star model from the 2000s would now only score 2 or 3 stars.
Old fridges also use more than they did when new. They lose refrigerant, the insulation and door seals wear, and dust builds up on the compressor and coils. YourHome says a new efficient fridge may save you more than half the energy use of an old one.
The second fridge. An older fridge could easily be costing $200 or more a year to run, according to YourHome. YourHome’s advice: empty and turn off a second fridge when it isn’t needed, and don’t put it in a hot garage or on a verandah.
Cheap fixes before you replace anything:
- Check the temperature: YourHome suggests 3 to 4 degrees for the fridge, and every degree lower takes 5% more energy.
- Check the door seals: a seal should hold a piece of paper tightly in place when the door is shut (YourHome).
- Leave space around the fridge: YourHome says poor air circulation can increase energy use by 15% or more.
A plug-in energy meter shows what your old fridge really uses; compare a year of that with the label kWh of the replacement.
The big ones: heating, cooling and hot water
Heating and cooling account for around 40% of household energy use (YourHome), and heating hot water for 15% to 30% (Solar Victoria), so the savings here run to hundreds of dollars a year, not tens.
- Hot water. A heat pump uses up to 75% less electricity than a standard electric storage system, and many households save around $400 a year on energy bills, depending on usage and the system being replaced (Victorian Government). We run the numbers in heat pump vs gas hot water and heat pump vs electric hot water.
- Heating. Replacing a ducted gas heater with an efficient reverse cycle system saves up to $1,140 a year, according to the Victorian Energy Upgrades program.
- The 2027 hot water rule. From 1 March 2027, a gas hot water system in an existing home that breaks and can’t be repaired, or is replaced for any other reason, must be replaced with an electric one, with some exemptions.
If your gas water heater or ducted heater is getting on, plan the switch before it fails. Helcro Electrical installs heat pump hot water and reverse cycle air conditioners across Melbourne South East and applies the VEU discount on them: call 1300 201 358 or Get a Quote.
Timing helps too. Under the Victorian Midday Power Saver, households with a smart meter that sign up get up to 24 kWh of free power a day from 11am to 2pm. The Victorian Government notes that prices outside those hours and daily supply charges may be higher on this offer, so compare it with your current plan. A dishwasher or dryer with a delay timer can run in that window; a fridge can’t be shifted.
Victorian discounts on efficient appliances
The Victorian Energy Upgrades (VEU) program offers discounts on some efficient appliances through accredited providers. As of October 2026, the energy.vic.gov.au product pages list:
| Appliance | What qualifies | Discount |
|---|---|---|
| Fridge or freezer | fridge 5.5 stars or more, or freezer 4 stars or more, 250 to 700 litres, on the GEMS and ESC registers | up to about $70 |
| TV | 6 stars or more and over 4,000 cm² (about 38 inches), up to 2 per household | up to about $70 |
| Heat pump clothes dryer | 7 stars, 5 kg or more, once per household | up to about $70 |
Those figures assume a $70 certificate price; the final discount is set by the provider. Some fridges with dedicated higher-temperature compartments, such as wine cellars, are not eligible. If you have already bought one, a discount after the purchase may be possible with the invoice: check the energy.vic page for the conditions.
The bigger VEU discounts are on fixed appliances: up to $5,530 off when a ducted gas heater is replaced with an efficient reverse cycle air conditioner (see our Victorian Energy Upgrades page). For fridges, TVs and dryers, each energy.vic.gov.au product page lists the providers that may offer that discount.
Getting rid of the old one
In Victoria it is illegal to put e-waste, meaning any item with a battery, plug or cord, in any household or kerbside bin. Take it to an e-waste drop-off point instead.
Fridges and air conditioners also contain refrigerants that must be recovered from the discarded appliance.
Council hard rubbish collections are another option. The City of Kingston takes fridges and freezers with the doors removed, with two free booked collections each financial year for residents using kerbside bins and an extra collection for $95; check the size limits when you book. Other councils run their own rules, so check yours.
Energy star rating questions
What does an energy star rating mean, and what is a good one?
It shows how efficient a model is compared with similar models, from 1 to 10 stars. More stars is better, as long as you compare models of a similar size. Anything over 6 stars is super-efficient. As a Victorian benchmark, the VEU discount starts at 5.5 stars for fridges, 6 stars for TVs and 7 stars for heat pump dryers.
What does a 4 star energy rating mean?
On the standard 6-star label, 4 stars means a model is more efficient than a 3-star model of a similar size and less efficient than a 5-star one. Check the kWh as well: on the government’s 350 litre fridge example, each extra star is worth about $15 a year at 27.35c.
Does the energy rating matter on a washing machine?
Yes, but less than size and use. The label assumes 7 warm washes a week, so your own figure depends on how often you wash. A bigger machine at the same stars still uses more, so pick the capacity you need, then the most stars.
What is a 7-star energy rating for a house?
A different scheme. NatHERS rates a home’s design from 0 to 10 stars; the current minimum for new homes in most jurisdictions is 7 stars, and NatHERS can be used to meet the energy requirements of the National Construction Code. It has nothing to do with appliance labels.
Is ENERGY STAR the same as the Australian star rating?
No. ENERGY STAR is a US Government scheme seen on some imported products. In Australia, compare the stars and kWh on the Energy Rating Label.
How Helcro Electrical can help
The appliances that move your bill most are fixed: heating and cooling, and hot water. Those, and the cooktop circuit and switchboard behind them, are our work. Helcro Electrical is a Registered Electrical Contractor (REC 35448, on the Energy Safe Victoria register) based in Cheltenham, installing reverse cycle air conditioners, heat pump hot water and the electrical work for going all-electric across Melbourne South East.
As a VEU Accredited Provider (A003039), we apply the VEU discount on the air conditioners and heat pump hot water systems we install. Call 1300 201 358 or Get a Quote. We respond within 2 business hours. Written quotes follow a $50 site assessment.
How we checked this page
The figures on this page come from these sources, checked on 27 October 2026:
- Energy Rating, the Energy Rating Calculator, energy.gov.au and YourHome: the labels, the test assumptions and the worked examples
- the Essential Services Commission’s 2026–27 Victorian Default Offer price determination (20 May 2026)
- energy.vic.gov.au (the VEU product pages and the Midday Power Saver page, checked 28 October 2026), Solar Victoria, environment.vic.gov.au, the City of Kingston and NatHERS
The dollar figures are our own arithmetic: the government’s kWh figures multiplied by the 27.35c United Energy default offer rate.
