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  • maroondah heating & cooling Blog Australian Energy Rating Labels: Explained

Australian Energy Rating Labels: Explained

Apr 18th, 2024
Australian Energy Ratings

From cost-of-living pressure to global climate concerns, there’s no doubt that energy efficiency is more important than ever. Luckily, heating and cooling companies are creating systems that have taken efficiency to the next level. 

So, how exactly can you gauge the energy efficiency of your heating and cooling system? In Australia, the answer is fairly simple. Since being introduced by the federal government over three decades ago, the Energy Rating Label is a framework that outlines the efficiency of each appliance.

Using a star rating system, each system or appliance is assessed against specific criteria and then given a rating to match. The more stars it receives, the more efficient it is. This is the basic premise of the Energy Rating Label metric.

Throughout this piece, we’ll explore what the different star ratings mean, how this metric is measured, and much more.

Why is the Energy Rating Label Important?

Investing in an energy efficient system is important for a multitude of reasons. The first is the effect it has on your utility bills. Whether you own a small home or operate a large workspace, inefficient heating and cooling units will translate to higher bills, and place a serious strain on your budget. This is because they use more energy to achieve the desired temperature.

While the upfront cost of a unit with a higher rating may be more steep, their efficiency more than makes up for it in the long term. Of course, in this case, we are referring to systems that will get a lot of use.

Another advantage of more efficient systems is that they consume less energy, which also translates to fewer greenhouse emissions.

How to Read the Energy Rating Label

Star Rating

The star rating, a crucial component of the Energy Rating Label, revolves around energy efficiency. It indicates how much energy a product uses compared to similar models. Ratings typically range from 1 to 6 stars, but advancements in technology have introduced super-efficient models with ratings extending up to 10 stars.

For appliances that offer both heating and cooling, there will generally be two separate ratings for each.

Star rating Energy label

Energy Consumption

Energy consumption, measured in kilowatt hours (kWh), signifies how much electricity a model uses annually. Standardised testing, in line with official Australian and New Zealand Standards, forms the basis for these figures. Keep in mind that the assumed usage frequency on the label might differ from your actual usage and impact the actual energy consumption.

Estimating Running Costs

With the energy consumption number in hand, you can estimate the annual running cost of an appliance using a simple formula:

Annual Running Cost=Total Energy Consumption (kWh)×Electricity Tariff (dollars per kWh)

Annual Running Cost=Total Energy Consumption (kWh)×Electricity Tariff (dollars per kWh)

For instance, if a fridge consumes 458 kWh annually, and your electricity tariff is $0.307 per kWh, the estimated annual running cost would be $140.61 (458 kWh × $0.307).
Whether you’re after efficient split systems in Melbourne or brand-new ducted heating, Maroondah Air is the name to trust. We’ve got over two decades of experience and supply a great range of energy efficient solutions.

A Practical Example

Let’s say you’re in the market for a new fridge. Here are the energy ratings of two contenders:

  • Fridge A: 2 stars, energy consumption of 542 kWh.
  • Fridge B: 4 stars, energy consumption of 318 kWh.

Your electricity tariff is $0.307 per kWh.

  • Fridge A estimated annual running cost: $166.39 (542 kWh × $0.307)
  • Fridge B estimated annual running cost: $97.63 (318 kWh × $0.307)

By choosing Fridge B, you could save $68.76 per year, amounting to an estimated overall saving of $687.60 over ten years!

Air Conditioning Energy Rating Labels

If you’re about to buy a new split system, ducted unit, or an evaporative cooler, it’s important to know how and where to locate its energy rating. Let’s quickly go over this now.

Displayed on the label’s top section are the rated cooling and heating outputs of the air conditioner in kilowatts (kW). The right-hand side of the label showcases the estimated annual electricity consumption for cooling and heating in each climate zone. Notably, this new label replaces the old Energy Rating Label (L), and it comes in the form of the Zoned Energy Rating Label (R).

Despite the new label’s adoption, some stores may still carry air conditioners featuring the old Energy Rating Label. However, as newer models flood the market, the prevalence of the outdated label is expected to reduce. It’s also crucial to note that while both labels use star ratings to indicate efficiency, comparisons between the two are invalid. Generally, models with the new label outperform their old-label counterparts with the same star rating.

Woman relaxed in air conditioning room

Gas Energy Rating Labels

While gas is gradually on the way out on both a state and national level, it is still one of the most commonly used sources of energy. The heating and cooling industry is no exception. As stated by Sustainability Victoria, “The Gas Energy Rating Label is required for gas heaters and gas water heaters as part of the gas product certification of Australia. It’s based on an Australian standard test and can be trusted.” Source: Sustainability Victoria Website

For gas based appliances, the label uses a 6-star rating to demonstrate how efficient each product is. As we noted earlier, it’s quite straightforward. The more stars on the label, the more efficient it will be.

Water Rating Labels

Water based appliances, units, and systems are also measured against a 6 star rating criteria. This can include everything from dishwashers to washing machines, shower heads, toilets, taps, and more.

As with any energy rating, the rule here is exactly the same. More stars=more energy efficient.

Will the Energy Rating Label Always be Displayed?

In physical stores, displaying the Energy Rating Label is mandatory for certain appliances like split systems, clothes dryers, washers, computer monitors, dishwashers, refrigerators, freezers, and televisions. If you’re shopping online, it’s not mandatory, but many retailers will provide this information. 

If the rating isn’t clearly visible or made readily available to you, reach out to the retailer directly or for heating and cooling, your local air conditioning company.

Future Trends and Considerations

Energy efficiency is currently a major priority for the State Government of Victoria. For example, as recently as late 2023, the government legislated that all new builds costing over $50,000 must meet a minimum 7 star rating, as set out by the Building Sustainability Index (BASIX) guidelines. This represents a significant jump from the previous star rating of 5.5.

In terms of heating and cooling, there are many initiatives (both state and federal) that are either encouraging or mandating the use of more efficient systems. This is why there has never been a better time to upgrade and move on from any outdated heating and cooling units that you own.

From solar hot water to cutting edge split systems and gas-free reverse cycle heating, our team is here to help you find a suitable unit, and handle the installation process for an affordable fee.

Contact us Today for Seamless Heating and Cooling Installation

Whether you need help with heating and cooling installation, or simply need expert guidance, Maroondah Air is your all-in-one source for heating and cooling in Melbourne. We’ve worked in  the industry for decades and stay up-to-date with the most innovative and sustainable products on the market today.

Maroondah Air is a family company formed over twenty years ago as a direct response to a niche spot in the market. We saw an opportunity for a company with a quality plumbing background to offer an exceptional installation experience. But what really makes us different and successful is our approach to customer service.

Reach out to us now!

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