What is ENERGY STAR and does it matter?

U.S. taxpayers have spent millions of dollars to create and run ENERGY STAR. What have we gotten in return?

Using energy wisely has many benefits. When we use less energy we cut pollution, reduce strain on our electric system and lower costs for consumers. But, consumers in the marketplace can’t look at a product and know how much energy it uses. Clear labeling of  can help. That’s why the administration of President George H.W. Bush created the ENERGY STAR label in 1992. 

What is the ENERGY STAR label? 

ENERGY STAR is a voluntary labeling program administered by the U.S. Environmental Protection Agency (EPA). The idea is simple: EPA sets energy efficiency specifications for different products. Then manufacturers that meet those specifications can choose to display the ENERGY STAR logo on those products. In turn, consumers and businesses who are in teh market for energy-efficient equipment can look for the ENERGY STAR label when making buying decisions.

Today, ENERGY STAR® is the most widely recognized symbol for energy efficiency in America. About 90% of households recognize the blue ENERGY STAR label, according to a survey conducted in 2022. When consumers see the label they trust that it will provide simple, credible, and unbiased information that helps them make informed decisions when purchasing products that use energy, whether it be a new dishwasher, refrigerator or other product, or purchasing a new home.

What are the benefits of ENERGY STAR? 

The ENERGY STAR label has prevented air pollution and protected the environment by creating a market for energy efficient products, homes, and buildings. By doing so, ENERGY STAR has helped to increase the production and adoption of energy-efficient technologies and practices. As a result, millions of American consumers and businesses use less energy to get the same job done. 

According to EPA, the ENERGY STAR program has delivered the following benefits:

  • Reduced energy waste by 5 trillion kWh since 1992. That’s enough electricity to power all the homes in America for three years. 
  • Reduced health-harming pollution. Energy use reductions attributable to ENERGY STAR has led to reductions in sulfur dioxide pollution of 210,000 tons, nitrogen oxide pollution by 210,000 tons, and fine particulate matter by 20,000 tons. This avoided air pollution was responsible for an estimated $7 – 17 billion in public health benefits. 
  • Reduced global warming pollution. Reductions in energy use attributed to ENERGY STAR prevented 4 billion metric tons of greenhouse gas emissions, which is the equivalent emitted by 1,055 coal-fired power plants in 1 year. In 2020 alone, the program’s emissions reductions were equivalent to more than five percent of U.S. total greenhouse gas emissions.
  • Saved consumers more than $500 billion in energy costs since 1992. 

How much does ENERGY STAR cost? 

EPA’s ENERGY STAR program consistently delivers a tremendous return on taxpayer investment: Its current annual budget of approximately $32 million represents less than 1% of EPA’s spending yet saves American households more than $40 billion annually on energy bills. For every dollar the federal government spends on the program, consumers save $350. 

The ENERGY STAR program is at risk

Despite its successes, today the future of the ENERGY STAR program is in question. In May 2025, the director of the Office of Atmospheric Protection at EPA told employees that “the Energy Star program and all the other climate work, outside of what’s required by statute, is being de-prioritized and eliminated.”

More than 1,000 companies and organizations have urged EPA to maintain full funding and staffing levels in the ENERGY STAR program. Public engagement can make a difference too. You sign up for more information and ways to help protect the ENERGY STAR program.

Topics
Authors

Johanna Neumann

Senior Director, Campaign for 100% Renewable Energy, Environment America Research & Policy Center

Johanna directs strategy and staff for Environment America's energy campaigns at the local, state and national level. In her prior positions, she led the campaign to ban smoking in all Maryland workplaces, helped stop the construction of a new nuclear reactor on the shores of the Chesapeake Bay and helped build the support necessary to pass the EmPOWER Maryland Act, which set a goal of reducing the state’s per capita electricity use by 15 percent. She also currently serves on the board of Community Action Works. Johanna lives in Amherst, Massachusetts, with her family, where she enjoys growing dahlias, biking and the occasional game of goaltimate. 

Abe Scarr

Energy and Utilities Program Director, U.S. PIRG Education Fund

Abe Scarr is the director of Illinois PIRG and is the PIRG Energy and Utilities Program Director. He is a lead advocate in the Illinois Capitol and in the media for stronger consumer protections, utility accountability, and good government. In 2017, Abe led a coalition to pass legislation to implement automatic voter registration in Illinois, winning unanimous support in the Illinois General Assembly for the bill. He has co-authored multiple in-depth reports on Illinois utility policy and leads coalition campaigns to reform the Peoples Gas pipe replacement program. As PIRG's Energy and Utilities Program Director, Abe supports PIRG energy and utility campaigns across the country. He also serves as a board member for the Consumer Federation of America. Abe lives in Chicago, where he enjoys biking, cooking and tending his garden.