When shopping for a new refrigerator in Australia, you've likely noticed the colourful energy rating labels displayed on every model. These labels, featuring stars and kilowatt-hour figures, are designed to help consumers make informed decisions about energy efficiency. But what do these ratings actually mean, and how can you use them to estimate your real-world running costs? In this comprehensive guide, we'll decode the Australian energy rating system and show you how to make genuinely energy-smart purchasing decisions.
Refrigerators are typically the second-largest energy consumers in Australian homes after heating and cooling systems. Choosing an energy-efficient model can save you hundreds of dollars annually on electricity bills.
The Australian Energy Rating Label Explained
The Energy Rating Label is a mandatory requirement for refrigerators sold in Australia under the Greenhouse and Energy Minimum Standards (GEMS) Act. This label provides standardised information that allows you to compare the energy efficiency of different models at a glance. Let's break down each component of the label.
The Star Rating System
The most prominent feature of the label is the star rating, displayed on a scale from one to six stars (with some super-efficient models now qualifying for up to ten stars on the "super efficiency" scale). Each additional star represents approximately 27% better energy efficiency compared to the previous star level.
- 1-2 stars: Below average efficiency, higher running costs
- 3 stars: Average efficiency for the market
- 4 stars: Good efficiency, moderate savings
- 5-6 stars: Excellent efficiency, significant savings
- 7-10 stars: Super-efficient models, maximum savings
It's important to understand that star ratings are comparative within product categories. A 4-star 700-litre French door fridge will still use more electricity than a 4-star 300-litre bottom mount model—the stars indicate efficiency relative to similar-sized units, not absolute energy consumption.
The kWh Figure
Below the star rating, you'll find the estimated annual energy consumption in kilowatt-hours (kWh). This figure represents how much electricity the refrigerator is expected to use per year under standardised testing conditions. This is the number you'll use to calculate actual running costs.
Always compare the kWh figure between models, not just the star rating. A smaller fridge with fewer stars might still use less energy than a larger fridge with more stars.
How to Calculate Real Running Costs
The kWh figure on the energy label gives you everything you need to estimate annual running costs. The formula is simple:
Annual Running Cost = kWh per year × Your electricity rate per kWh
For example, if a refrigerator has an energy consumption of 400 kWh per year and your electricity rate is $0.30 per kWh:
400 kWh × $0.30 = $120 per year
Finding Your Electricity Rate
Your electricity rate varies depending on your energy provider, plan, and location within Australia. As of 2025, typical residential electricity rates range from approximately $0.25 to $0.40 per kWh across different states and providers. You can find your exact rate on your electricity bill, usually listed as "usage charges" or "consumption charges."
NSW: ~$0.32/kWh | VIC: ~$0.28/kWh | QLD: ~$0.30/kWh | SA: ~$0.38/kWh | WA: ~$0.31/kWh | TAS: ~$0.27/kWh
Comparing Long-Term Costs
When comparing refrigerators, it's worth calculating the total cost of ownership over the appliance's expected lifespan. Consider this example comparing two 500-litre fridges:
- Model A: Purchase price $1,200, energy consumption 450 kWh/year
- Model B: Purchase price $1,500, energy consumption 280 kWh/year
At $0.30/kWh over 15 years:
- Model A total cost: $1,200 + (450 × $0.30 × 15) = $1,200 + $2,025 = $3,225
- Model B total cost: $1,500 + (280 × $0.30 × 15) = $1,500 + $1,260 = $2,760
Despite costing $300 more upfront, Model B saves $465 over its lifetime. This demonstrates why focusing solely on purchase price can be misleading.
Factors That Affect Real-World Energy Consumption
While the kWh figure provides a useful baseline, your actual energy consumption may differ based on how you use and position your refrigerator. Understanding these factors helps you maximise efficiency.
Location and Ambient Temperature
The standardised testing for energy labels occurs at an ambient temperature of 32°C. If your kitchen regularly exceeds this temperature during Australian summers—especially in northern states—your fridge will consume more energy than indicated. Conversely, in cooler climates or air-conditioned homes, consumption may be lower.
Usage Patterns
Energy testing assumes a specific pattern of door openings and food loading. Heavy use (frequent door openings, storing warm food, keeping the fridge very full) increases energy consumption. Consider your household's habits when interpreting the label figures.
Refrigerators placed in garages or outdoor areas face extreme temperature variations that can increase energy consumption by 30-50% compared to indoor placement. Some manufacturers specifically warn against outdoor installation.
Maintenance and Age
A well-maintained refrigerator operates closer to its rated efficiency. Dirty condenser coils, worn door seals, and incorrect temperature settings can significantly increase energy consumption. Additionally, all refrigerators become less efficient as they age—typically losing about 5% efficiency every five years.
Understanding the Testing Standards
The energy consumption figures on Australian labels are derived from the AS/NZS 4474 testing standard. This standardised test ensures all refrigerators are measured under identical conditions, making comparisons fair and meaningful. The test includes:
- Operating at 32°C ambient temperature (representing Australian conditions)
- Running continuously for a minimum testing period
- Simulating typical door openings and food loading
- Measuring total energy consumption over the test period
- Extrapolating to estimate annual consumption
The Australian standard uses a higher ambient temperature than European or American tests (which use 25°C), making Australian ratings particularly relevant for our climate.
Inverter Technology and Energy Efficiency
Modern refrigerators increasingly feature inverter compressor technology, which significantly impacts energy efficiency. Traditional compressors operate at full power and cycle on and off, while inverter compressors adjust their speed continuously based on cooling demands.
Benefits of Inverter Compressors
- More consistent internal temperatures (better food preservation)
- Lower energy consumption during light-load periods
- Reduced wear and longer compressor lifespan
- Quieter operation due to fewer start-stop cycles
Most high-efficiency refrigerators (4+ stars) now feature inverter technology. While they typically cost more upfront, the energy savings and improved performance usually justify the investment.
Making Energy-Smart Purchasing Decisions
Armed with an understanding of energy ratings, here's how to make the smartest choice for your household:
- Determine the right size: Don't buy more capacity than you need—larger fridges use more energy regardless of efficiency rating
- Compare kWh within your size range: Focus on models that meet your capacity needs, then compare their energy consumption
- Calculate long-term costs: Factor in 10-15 years of energy costs when comparing purchase prices
- Consider your climate: In warmer regions, prioritise higher efficiency ratings
- Look for inverter technology: Especially valuable if your household has variable usage patterns
The government's Energy Rating website (energyrating.gov.au) offers a free comparison tool that lets you search and compare refrigerators by size, type, brand, and energy consumption. Use it to shortlist efficient models before visiting retailers.
Beyond the Label: Other Efficiency Features
While the energy rating is your primary efficiency indicator, other features can impact real-world consumption:
- Multi-zone cooling: Allows different compartments to run at different efficiencies
- Vacation mode: Reduces energy consumption when you're away
- Door alarms: Alert you to open doors, preventing energy waste
- LED lighting: Uses less energy than traditional incandescent bulbs
- Smart sensors: Optimise cooling based on actual contents and usage
Understanding energy ratings empowers you to make purchasing decisions that benefit both your wallet and the environment. By choosing an efficient refrigerator and operating it wisely, you can significantly reduce your household's energy consumption while enjoying reliable food preservation for years to come.