How to calculate the lifetime running cost using the ‘Energy Rating’ label
If you’re in a store buying an appliance and you can’t access the internet, then you won’t be able to access the comparison ratings on EnergyRating.gov.au.
If this happens, then the ‘Energy Rating’ label itself can tell you the running cost of the appliance.
How to calculate the lifetime running cost:
- Look at the middle of the label where it tells you the ‘energy consumption kWh per year’.
- Multiply this kWh figure by 30 cents, and it will give you an idea of the running costs. If it says 400kWh per year, then the annual running cost is 400 x 30 cents = $120 pa.
- Multiply this annual figure by 10 years to get the approximate lifetime running cost of the appliance. If it’s $120 per year, then it would be $1,200 over 10 years.
What’s the ‘true cost’ of the appliance?
It’s important to add this 10-year running cost figure to the purchase price. This will give you the ‘true cost’ of the appliance.
You’ll often find that the more expensive energy efficient equipment will cost you far less in the long run than the cheaper model.
Although energy efficient equipment sometimes requires a greater financial investment initially, this pays off over the life of the product due to reduced running costs.
Use the above method to compare the running costs of the different models on display at the store. You can then buy the model that will save you the most money over its lifetime.
Many businesses use domestic equipment in their operations. Use an independent advice service such as CHOICE to research this equipment before purchasing it.