Protecting ENERGY STAR: Why it matters more than ever

Bertrand Poirier, Head of Regulatory and Technical Affairs, North America, and Morten Schmelzer, Head of Group Public Affairs, Systemair AB, explain why protecting the ENERGY STAR® program is essential, and the consequences of losing the scheme will have on consumers, the HVAC industry and the environment.

Standards

Today, HVAC and other industries face a critical moment. Proposed cuts to the U.S. Environmental Protection Agency (EPA) could reshape the future of energy-efficient products across North America, but not for the better.

Such a move risks undermining decades of progress. Particularly at risk is the ENERGY STAR® program for ventilation fans, the most widely recognized HVAC-related premium product branding initiative of its kind across the Americas.

Its removal could destabilize rebate programs, erode consumer trust, and disrupt the framework manufacturers and homeowners have long relied on.

Bertrand Poirier, Head of Regulatory and Technical Affairs, North America
Photograph of Morten Schmelzer
Morten Schmelzer, Head of Group Public Affairs

Understanding the ENERGY STAR program

The significance of the ENERGY STAR label cannot be overemphasized. Introduced in 1992 with the understanding that economic growth and environmental protection must go hand in hand, ENERGY STAR has become the government-backed symbol for energy efficiency, offering simple, credible, and unbiased information to help consumers and businesses make informed decisions.

Since its launch, ENERGY STAR and its partners have helped save 5 trillion kilowatt-hours of electricity, avoided over USD 450 billion in energy costs, and reduced greenhouse gas emissions by 4 billion metric tons. In 2019 alone, the program helped save nearly 500 billion kilowatt-hours of electricity and USD 39 billion in energy costs.

Impact on households and HVAC

Every dollar the EPA has invested in the program has delivered USD 350 in energy cost savings for businesses and households. It remains one of the most recognized consumer symbols in the U.S., with 90% of American households recognizing the logo.

ENERGY STAR’s impact on HVAC is profound. Over the years, it has continuously expanded to include new applications such as residential, commercial, medical centre, and industrial halls, as well as new product categories. Starting with heat pumps in 1995, it expanded to residential ventilation fans in 2001. Ventilating fans that earn the ENERGY STAR label must meet strict efficacy and sound level standards, delivering about 50% energy savings compared to standard models while enhancing indoor air quality. Regular updates to ENERGY STAR standards ensure that products stay efficient and technologically advanced.

Adoption across the US

Since its inception, ENERGY STAR has also impacted the legislative framework across the US. In 2011, approximately 26% of all new homes constructed in the U.S. were built to ENERGY STAR specifications in states with stringent building codes and robust utility incentives, such as Arizona. By the end of 2013, 13.2% of the commercial building stock had achieved ENERGY STAR, LEED, or both. Cities like Minneapolis and San Francisco led in adoption rates by square footage, while cities such as Detroit and Kansas City presented growth opportunities. ​

As of July 2017, 30 states and the District of Columbia had implemented energy efficiency policies, including mandated requirements, voluntary goals, or pilot programs to reduce electricity consumption through enhanced efficiency. This often supported the adoption of ENERGY STAR products and practices. ​Additionally, numerous utilities offer incentives to encourage further adoption. For instance, states like Oregon and New Jersey have provided rebates for specific ENERGY STAR products, while North Carolina and Missouri have implemented sales tax holidays for such products. ​

Losing a crucial market differentiator and creating consumer confusion

Given its transformative impact, the consequences of removing this program will be significant. First, the industry risks losing a crucial market differentiator that helps companies showcase the quality and efficiency of their products. Removing the program would likely slow the market transition to more energy-efficient products, contributing to higher emissions and undermining climate action goals. This would hurt cities and states aiming to meet carbon reduction targets under various climate accords and green building initiatives.

Its removal would also create confusion in the market, as consumers rely on the logo for quick, credible information on product performance. As ENERGY STAR-certified products typically use less energy than standard models, without clear labels, consumers would find it harder to identify efficient products, likely leading to higher household and business energy bills. Over time, the cumulative loss of energy savings could cost consumers and businesses billions in unnecessary expenses. In turn, companies would struggle to differentiate genuinely energy-efficient products, potentially leading to false or exaggerated green marketing claims and the loss of local manufacturing jobs

A barrier to innovation, public health and industry

It is also important to note that ENERGY STAR has indirect public health benefits, mainly through improving indoor air quality and ventilation standards and reducing outdoor pollution from energy production. Removing it could lead to poorer indoor air environments and increased airborne pollutants linked to heart disease, asthma, and other respiratory issues.

Furthermore, ENERGY STAR program supports many industries, from manufacturing to construction. These programs have created or sustained thousands of jobs in energy auditing, HVAC installation, green construction, and product manufacturing across North America. Losing ENERGY STAR could mean job cuts and reduced investment in the clean energy and efficiency sectors.

Lastly, one key benefit of the program is driving market transformation by setting performance benchmarks that manufacturers aim to meet or exceed. Removing it would serve as a barrier to innovation as there would be less pressure on manufacturers to develop next-generation, efficient technologies, slowing industry-wide improvement in the HVAC sector and beyond.

Collective action works

In response, we at Systemair and Fantech have proudly joined manufacturers across North America in urging EPA Administrator Lee Zeldin and key Congressional leaders to fully fund the ENERGY STAR program in the upcoming fiscal year. We know collective action makes a difference. In 2017, when similar threats emerged, nearly 1,100 organisations rallied in support of ENERGY STAR — and succeeded in protecting its future. We face a similar challenge today, and it’s time to stand together again.

Stock photograph of puzzle pieces

Working together, we can build on its success, ensuring consumers continue to have access to the products they trust — with the performance, features, and efficiency they expect. Thinking ahead, the ENERGY STAR program deserves to be extended and strengthened-supporting local manufacturing in North America and the international competitiveness of the HVAC and many other industries.

We encourage organizations to exercise their right to sign the petition via the following link, while it is active:  Ensuring the Future of the ENERGY STAR® Program | Alliance to Save Energy.