Energy star makes money

Two billion energy star products sold

How do you quantify how many real ‘green’ products have been sold? One measure is to look at the Energy Star sales record in the United States. (To earn the Energy Star label, they must meet energy efficiency criteria set by the US Environmental Protection Agency or the US Department of Energy.)

In 2005, Americans purchased about 175 million Energy Star qualified products spanning more than 40 product categories. These products, which include appliances, heating and cooling equipment, home electronics, office equipment, and lighting, offer consumers savings of between 10 and 90 percent in comparison to conventional models (see Fig. 2). The Energy Star program1 calculates they have prevented 35 million metric tons of greenhouse gas, and saved about $12 billion for U.S. consumers’ energy bills. Since 1992, over two billion products with the Energy Star label have been sold (excluding computers and monitors) in the U.S. alone.

Energy Star for the Home

The Energy Star website emphasizes the twin virtues of saving money and preventing greenhouse gas emissions: ‘Whether replacing an old appliance, making home improvements, or buying a new home, consumers can use ENERGY STAR to help guide their purchasing decisions, save them money, and prevent greenhouse gas emissions.’ As a practical example, U.S. households can save up to 30 percent annually on their utility bills by using Energy Star products. The Energy Star label is recognized by more than 60 percent of Americans, and has become the ‘trusted national symbol for energy efficiency’.

The Green Magnet

You might not think of the Energy Star label as a powerful magnet, but it has proven to be for a Canadian homebuilder. Daniels Corporation built homes to Energy Star performance standards, and had the Energy Star rating, so buyers were assured of energy savings. All 159 homes sold on the first day. A further incentive was that the Energy Star rating qualified them for 35-year mortgages, saving owners about $150 per month in after-tax dollars.

This is further confirmation of the U.K. study findings referenced in Fear is Rising. Consumers want both the functional benefits of energy saving products, and to display the emotional green badge. Every Energy Star purchase reinforces the story that buying green will reduce greenhouse gases, make the planet healthier for our children, and save us money. Smart green marketers will design their products to qualify for the Energy Star label, LEED certification, or the U.S. Green Building Council’s (USGBC) stamp of approval.