Choosing a refrigerator: Follow the Yellow Tag Road.

May 06 '02 (Updated May 13 '02)    Write an essay on this topic.


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The Bottom Line Refrigerators use more energy than any other kitchen appliance. If you do not have air-conditioning, then a refrigerator will use as much electricity as everything else in your home combined...

Refrigerators use more energy than any other kitchen appliance. If you do not have air-conditioning, then a refrigerator will use as much electricity as everything else in your home combined. Imagine that! Half of all your electricity bills are paying to cool your food. In a hot southern climate, an old, badly positioned refrigerator may consume 80 cents out of every energy dollar. It is therefore surprising how little attention consumers pay to efficiency when buying a refrigerator.

Okay. First the basics. Where are you going to put the refrigerator? Is it in an alcove or built-in cabinets? If so, the outer dimensions of the new unit are extremely important. It has to fit. Are there any narrow corridors, stairs, or doorways on the route to your kitchen that might limit the size? Next, what capacity do you need? An 18 cubic foot refrigerator is ample for a couple, but a family with four kids at home will need something much larger. What kind do you need: side-by-side, top-freezer or bottom-freezer? Do you need an icemaker or through-the-door cold water? Obviously, personal preferences and lifestyle are a big factor here.

Bigger units cost more to operate. Top-down units are generally more efficient than side-by-sides. Top-freezer models are generally more efficient than bottom-freezer units because they are more popular, and so receive more research dollars. (Common sense and the laws of physics dictate that it should be the other way round.)

Gadgets like icemakers and cold water dispensers add to both the initial cost and the running cost. However, that does not necessarily make them bad. If through the door cold water prevents your kids from opening the door fifty times a day, then you are actually saving energy. On the other hand, if you almost never use them, you would be better off without these attachments.

Once you have made these decisions, you are ready to select the refrigerator body. Most refrigerators come in a range or colors and shelving arrangements. You can usually go from basic wire shelf up to split-level, glass shelving for an additional $140. Choosing any color other than white usually adds about $10. However, all the units with the same body type have the same efficiency.

How can you tell the efficiency? Just follow the yellow tag road. Federal law requires that EnergyGuide labels ( http://www.eren.doe.gov/buildings/consumer_information/energyguide.html ) be placed on all new refrigerators. These labels are bright yellow with black lettering. When you're shopping for the best buy in a new appliance, using EnergyGuide labels will save you money. In addition, don't forget to look for the ENERGY STAR label. A new refrigerator with an ENERGY STAR label (http://www.energystar.gov/products/refrigerators/ ) must exceed government energy-efficiency standards by 10 percent or more. This can save you thousands of dollars over the life of the unit.

When you have narrowed your choice down to a few units, it's time to hit the Web. Check the energy ratings at the government sites above, or at the manufacturer's site. Yellow Tags have been known to get "misplaced" in some less reputable stores. I have seen the wrong tag on a unit in Sears, though here I actually believed it was a mistake. Check the reliability ratings for the units in sites like Epinions and consumer magazines.

Once you are certain of the unit you want, shop around. If you have a little time to wait, you can usually get a sale, a manufacturer's rebate, or at least free delivery. Don't be afraid to haggle. Smaller stores will often be willing to deal. Don't forget to ask how much it will cost to have the old one removed. Delivery and removal cost can often be a deal maker/breaker. They can be free, and I have seen them as high as $80. With care, you can get a good sturdy unit that will serve you for many years, while saving you money in energy bills. Good Luck.


Understanding the Yellow Tag.

For a refrigerator, there are three numbers of interest on this tag. The first is the energy use of this model in kWh/year. This is in the white section on the middle of the tag. The smaller this number, the less energy the refrigerator uses. The second number is the estimated annual cost in dollars. This is in white letters on a black rectangle, near the bottom of the tag. The third number hides in the small print at the bottom of the tag. It is the 2001 US Government national average cost of 8.29 cents per kWh.

Now, the reason that more people do not use this tag when comparison-shopping is that they do not understand it. Let us have a look and see what the numbers mean.

A kWh is a Kilowatt-Hour. A Kilowatt is a unit of energy. It is the energy used by ten 100-Watt light bulbs. A Kilowatt-Hour is the amount of power you consume if you leave those ten light bulbs on for an hour. Okay. No biggie!

A kWh/year is the estimated amount of power you would use in a year. A rating of 500 kWh/year means that the estimated power use for this refrigerator in a year is the same as leaving those ten light bulbs switched on for 500 hours. See. That's not too scary is it? Just remember: smaller is better.

The second number is easier. The estimated cost to run this refrigerator for a year in dollars. We all know what dollars are, right? This would be about $42 for a 500 kWh/year refrigerator. (500 * 8.29 cents) Yes, this number is easy to use but misleading. Read on.

It is the third number that requires attention. The Government has the idea that my utility company charges me 8.29 cents per kWh. I wish. I normally pay triple that.

The Government number is an average cost. Now as you know, some people pay less than the average and some pay more. That's why it is an average. Huge industrial complexes near Niagara pay a pittance for vast amounts of energy generated by the falls. There are similar deals near every power plant. Through prepay plans and sweetheart deals, big industry pays a fraction of the normal electricity charges nationwide. Well if they pay less, who pays more? You do, the residential customer. What a surprise! A few folks who live near large hydroelectric projects get decent rates, but for the rest of us, rates of 25+ cents per kWh are the norm.

Hold on a second. If I pay three as much for electricity, then doesn't it cost me three times as much to run the refrigerator? Bingo! You got it! A free virtual teddy bear to the lady in the red dress. My cost to run the 500 kWh/year refrigerator would be about $126. (3 * $42)

So, just how much does your electricity cost? Good question, and one that your utility company is not that keen to answer. On your bill, you will see a charge per kWh for electricity used. However, you will also see a delivery charge per kWh. There will also be a base charge for the service. Most areas will get also get a surcharge in the peak usage summer months, and that surcharge is usually more for heavier users. So, you and your five kids probably pay more then the little old lady who lives next door. Great!

Here is a simple way to get a useable figure. Call your utility company and get the total amount of electricity you used last year, and the total amount you paid. (You can get it from the bills if you saved them.) Divide the total-cost by the total-kWh to find what YOU paid per kWh for electricity. If you lived in California last year, prepare for a shock. Did you pay 8.29 cents? I bet you didn't.

Now, carry your calculator to the store. You can multiply the estimated use in kWh/year by YOUR rate and get YOUR estimated cost. I pay about 25 cents per kWh. For me, that 500 rated refrigerator would cost 500 * 25 cents to operate, or $125 per year. That's a far cry from the $42 government estimate.

Okay. Right about now your head is spinning like Linda Blair in, The Exorcist. Bear with me. Let me give you an idea what these numbers mean to you.

The other day when I was shopping, I saw a young couple buying their first refrigerator. They narrowed their choice to two units. One was an older unit that has been in the store for a year or two, rated at 615. It was on sale. The other was a brand new Energy Star model rated at 435. I could see they liked the newer model, but they picked the old one because it cost $80 less.

The new model used 180 kWh/year less than the old one (615 minus 435). Since they live near me, they probably pay about 25 cents per kWh for their power, so the old unit cost $45 per year more to operate. (180 * 25 cents) After only two years, the couple would have saved money by buying the newer unit. Now a refrigerator normally lasts 15-20 years. Over 20 years, the "cheaper" old unit cost $900 more to operate. (20 * $45) That's double what they paid for it. Tragic!

People make decisions like this in every store in the nation on a daily basis, because they do not understand the Yellow Tag. What could YOU do with $900 extra dollars?


Buyer Beware

What made the above story even worse was that the new unit had a manufacturer's rebate for the delivery cost. That would have reduced the price difference by $50. However, the salesman, anxious to sell the older unit, failed to mention the rebate to the couple. This brings up an important point that all buyers should remember. You can only trust the salesman as far as you can throw a refrigerator. (Standing the unit on a cliff top does not count! However, standing the salesman on a cliff top may be regarded as a good bargaining position.)

The yellow tag is as old as the refrigerator and will reflect the range from the time the unit was made, BUT that range may have changed. Last year a rating of 480 was super, near the bottom of range for an 18.2 cubic foot refrigerator. This year, 489 is the TOP of the range, which now drops as low as 414. A 480 rating is still excellent but now even better ones are available. Make sure you check the current range before making a decision on an older unit.

Don't assume that any new unit will be energy efficient. While even the worst will beat a unit from ten years ago, there is a wide range between the best and worst performers. On a trip to my local Sears, I checked out refrigerators available in the 18-19 cubic foot range. There was about a 200 kWh/year difference between the best and the worst. For me, that makes a $50 per year difference in running costs. (200 * 25 cents) The more efficient unit would save me $1000 over a 20-year life.

Remember, you MUST figure out what YOUR electricity costs. Using my 25 cent per kWh figure is no more valid than the Government's 8.29 cents per kWh figure. You can calculate an approximate number using only last month's bill. Just divide the total amount by the kWh used. The result is probably good enough to make a sound buying decision.


Should I replace my old unit?

According to the DOE, if your refrigerator is at least 10 years old, it uses as much energy as 2 ENERGY STAR labeled refrigerators.

If you have ten year old refrigerator, you can reasonably expect it to run for another five years. However, energy standards have improved so radically in the last decade that you may actually save money by replacing it with a new energy efficient model.

To find out, you can contact the manufacturer to get the energy rating for the old model. Add about 5 percent to it for every year your door seals have been on the machine. Then you can calculate how much a new unit will save.

Example: Your ten-year old machine is a 700, and has its original seals. So, we add 50 percent for the 10-year-old door seals making it a 1050. (700 + 350) The replacement unit has a 450 rating, so the old unit uses 600 kWh/year more. (1050-450) Our electricity costs 25 cents per kWh so the old unit will cost $150 more per year to operate. (600 * 25 cents) That's $750 more over the next five years. (5 * $150) If the new unit costs less than $750, it would be a good deal.

If the new unit cost $500, then in five years time, you can have a 15 year old unit you must replace, OR, a five year old unit, and $250 dollars in the bank. Think about it.


Other factors.

Since we are talking about energy use and refrigerators, there are some other factors to consider.

The only energy efficient models used to be expensive European imports. Now domestic companies like Whirlpool and Frigidaire make models that are almost as good for a fraction of the cost.

You can cut the energy use of your refrigerator by keeping the cooling coils clean, and making sure the door seals stay in good condition. A dirty or leaky seal can double or triple the annual running costs. If you are handy, it is worth replacing the seals every five years or so. It's not difficult, but you have to mess around a long time to get the new one seated properly. What a pain!

Opening and closing the door frequently, will greatly increase the annual energy costs. With a large family, through the door access for common items may save money.

The hotter it is outside the refrigerator, the more it will cost to run. In a non air-conditioned kitchen, a unit in Florida will use a lot more energy than the identical unit in Maine.

Putting the refrigerator in a totally enclosed cabinet makes it hard for it to lose heat. Make sure cabinets and alcoves are properly vented.

Never put a refrigerator in direct sunlight.

Putting your old refrigerator down the basement to store beer, is usually not cost effective.

Allow hot items to cool before putting them into the refrigerator or freezer. Don't let them stand about too long though, 30-60 minutes should be enough. Keep food covered while it cools.

Most experts agree that keeping the cooling cabinet at about 38F is best for food storage and energy efficiency. A small inexpensive thermometer can help you keep the fridge adjusted.

Coal is polluting, gas reserves are dwindling, and turmoil in the Middle East makes the price of oil unstable. Drought conditions over the last few years threaten the availability of hydropower. The power grid is old, leaky, and unreliable. You do not have to be a rocket scientist to see that conventionally produced electricity is not going to get any cheaper. Factoring in this increasing-cost into your calculations may be prudent. Remember what happened to California in the summer of 2001.

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