How to actually read Australian energy star ratings

Australia's energy star rating system is more useful than most people give it credit for - but it's also more complicated than it looks, and that complexity leads to genuinely misleading comparisons. Here's what the labels actually say, what they don't, and how to use them properly.

What the stars actually mean

The Australian Energy Star rating tells you how efficient an appliance is compared to other appliances of the same type and size currently on the market. More stars means more efficient relative to its peers.

This sounds simple, but there's a crucial implication: the stars are a relative ranking, not an absolute measure. A 3-star fridge from 2026 uses less energy than a 3-star fridge from 2016, because the average efficiency of all fridges in the market has improved. The star rating always reflects the current market.

The base scale runs from 1 to 6 stars, in half-star increments. But it doesn't stop at 6. Appliances that beat the 6-star benchmark are rated on an extended scale that runs to 10, and in some categories that band is where the market now sits: across the dryers we list, the median rating is 9 stars, with 31 models at 10. Among fridges, six models rate above 6.

So "6 stars" doesn't mean best available. Check what the top of the scale is in the category you're shopping in before you treat a number as impressive.

The comparison group problem

Here's where it gets tricky. Stars are awarded within specific comparison groups - defined by appliance type and capacity range. A fridge with 250L capacity is only compared against other 250L fridges. A 500L fridge is only compared against other 500L fridges.

This means you cannot directly compare star ratings across different sizes. A 5-star 250L fridge might actually use more energy per year than a 4-star 500L fridge - the larger fridge is just being compared against a pool of less-efficient large fridges.

For any direct energy comparison between two specific models, ignore the stars. Use the number instead.

The number that actually matters: kWh per year

Printed on every yellow Australian energy label alongside the stars is the annual energy consumption in kilowatt-hours per year (kWh/year). This is the figure you should use when comparing two appliances directly.

It tells you how much electricity the appliance is expected to consume over a full year of typical use. At the Australian average of about 30 cents per kilowatt-hour, you can work out your running cost directly - and your own rate is printed on your bill, which is the number that actually decides what you pay.

For example: 400 kWh/year multiplied by $0.30/kWh equals $120 per year in electricity costs.

A difference of 100 kWh/year between two fridges costs about $30 per year at that rate. Over the decade-plus a fridge is expected to run, that compounds into several hundred dollars - often enough to justify spending more on the efficient model upfront.

How to actually compare two appliances

Here's the practical approach when comparing two specific models:

1. Start with capacity - make sure you're comparing appliances of similar size and type. A 400L fridge against a 400L fridge; a 9kg washing machine against a 9kg washing machine.

2. Use kWh/year - this is your primary comparison figure for running costs. Lower is better, all else being equal.

3. Use stars as a sanity check - if two fridges have the same capacity but one has significantly more stars, that's meaningful. But don't use stars to compare a 250L fridge to a 500L fridge.

4. Calculate the payback - if Appliance A costs $200 more upfront but uses 150 kWh/year less, it saves about $45 a year at 30c, so it repays the difference in roughly four and a half years. Weigh that against how long you expect to keep it.

5. Check the test conditions - for washing machines and dishwashers the rating is based on one specific program, usually the eco cycle. Run something heavier and you'll use more than the label says.

WELS water ratings

For washing machines, dishwashers, and some other appliances, Australia also operates the WELS (Water Efficiency Labelling and Standards) scheme. These are entirely separate from the energy star ratings and use a separate label.

The WELS system rates water efficiency in stars - again, more is better - and shows the water consumption figure alongside them.

Here's what that means in practice for washing machines, across the 288 we list. Front loaders carry a median 4.5 WELS stars and use a median 78 litres per wash; top loaders carry a median 3.5 stars and use a median 110 litres. The full spread runs 44 to 195 litres, so - as with the energy label - compare the litre figure on the specific models you're weighing up rather than trusting the stars to rank them for you.

The practical upshot

Energy ratings are a useful tool when used correctly:

• Compare kWh/year (not stars) when choosing between specific models
• Stars work for quick comparisons within the same size category
• Check WELS for water-using appliances
• Calculate payback - the running cost difference often justifies a higher upfront price
• Remember the test conditions - real-world consumption varies, especially in hot climates

Whether the efficient model is worth its premium is arithmetic you can now do yourself: take the kWh/year difference, multiply by your own rate, and compare that annual saving against the price gap. For appliances that run continuously for a decade - fridges above all - that sum usually favours efficiency. For something you use occasionally, it often doesn't.

The yellow label was designed to make that comparison possible. Used properly, it does.

Once you know how to read the label, take a quiz for the category you're shopping in - every match comes with its energy figures and the reasoning behind the ranking.

Our fridges and freezers guides both work through energy against capacity in one category.