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Energy Guide Label

The Energy Guide label is a yellow-and-black label required by the FTC on many new appliances, including water heaters and HVAC equipment. It shows estimated annual energy use and operating costs, along with how the model compares to similar products. This makes it easier to compare efficiency across brands and choose systems that save money long-term.

💡 Key Takeaways

  • ✓The Energy Guide label is a yellow-and-black label required by the FTC on many new appliances, including water heaters and HVAC equipment. It shows estimated annual energy use and operating costs, along with how the model compares to similar products. This makes it easier to compare efficiency across brands and choose systems that save money long-term.
  • ✓Energy Guide costs are based on national averages and can vary by local rates.
  • ✓Efficiency comparisons are most accurate within the same product category.
  • ✓For HVAC and water heaters, climate and fuel type affect real-world costs.

Energy Guide Label

/ˈɛnərdʒi gaɪd ˈleɪbəl/

Definition

The Energy Guide label is a yellow-and-black label required by the FTC on many new appliances, including water heaters and HVAC equipment. It shows estimated annual energy use and operating costs, along with how the model compares to similar products. This makes it easier to compare efficiency across brands and choose systems that save money long-term.

What does the Energy Guide label tell you?

It shows estimated annual energy use and cost, plus how the model compares to similar appliances.

Source: The Cooling Company

Energy Guide label showing estimated annual energy cost

Quick Facts

FTCRequired by
Energy use + costShows
Comparison shoppingBest for
HVAC + water heatersApplies to

How Energy Guide Label Works

Infographic showing how to read an Energy Guide label

Energy Guide labels help compare energy use and costs.

Real-World Application

While shopping for a new AC or water heater, a homeowner uses the Energy Guide label to compare operating costs and pick the most efficient option within their budget.

Pro Tip

Look at total cost of ownership, purchase price plus estimated annual energy costs, when comparing models.

“Look at total cost of ownership, purchase price plus estimated annual energy costs, when comparing models.”

TCC HVAC Team (Licensed • EPA-Certified)
The Cooling Company • 2026-09-26T22:07:35.847Z

Important Things to Keep in Mind

  1. Energy Guide costs are based on national averages and can vary by local rates.
  2. Efficiency comparisons are most accurate within the same product category.
  3. For HVAC and water heaters, climate and fuel type affect real-world costs.

Did You Know?

The Energy Guide label program complements ENERGY STAR by helping consumers compare efficiency across all models, not just top performers.

FAQ

Is the Energy Guide label the same as ENERGY STAR?

No. Energy Guide shows comparative energy use, while ENERGY STAR highlights top-performing models.

Why might my costs differ from the label?

Local utility rates, climate, and usage patterns can change actual costs.

Can I use the label to compare different appliance types?

Not reliably. It’s best used to compare models within the same category.

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