The average household should save $107 on utility bills every year because of the efficiency standards crafted by the Biden administration, according to a new analysis released by the Appliance Standards Awareness Project (ASAP) and PIRG.
The study calculates savings in each state as old appliances are replaced with new models that meet the standards. Impacts change by state based on energy prices and heating and cooling needs, among other factors.
The study expects businesses around the country will save $2 billion annually. It also lays out the air pollution cuts (in nitrogen oxides and sulfur dioxide) that each state can expect from the standards.
“Consumers are going to save money year after year thanks to efficiency standards set during the Biden administration,” ASAP Executive Director Andrew deLaski said in a statement. “Whether you’re replacing a water heater, a clothes dryer or another appliance, these standards are going to ensure you get a better product that doesn’t leave you with needlessly high utility bills.”
The Department of Energy periodically updates efficiency standards for new products such as refrigerators, water heaters, air conditioners and electric motors. Since President Joe Biden took office in 2021, the department has issued about two dozen standards, which together offer savings in every state ranging from $67 in Utah to $285 in Hawaii.
Most of the standards set during Biden’s term will start taking effect between 2026 and 2029, with the study looking at how they will impact utility bills and other areas over the next two decades.
The standards offer net benefits in terms of bill savings, but a handful have more significant impacts, the report said. The biggest savings come from water heaters, light bulbs (“general service lamps”), washing machines, refrigerators, clothes dryers, pool pump motors and furnaces.
“All the standards save consumers more money than they cost; we estimate that the total utility bill savings for household products outweigh any increases in purchase price by more than a factor of three,” the report said.
The study quantifies how the new standards will cut NOx and SO2 pollutions, which are emitted by power plants and gas-fired appliances. The pollutants are harmful to the respiratory system and contribute to respiratory conditions, especially in children, the elderly and people with asthma.
The study said the standards should cut NOx emissions annually by 11,700 tons and SO2 by 5,100 tons.
“New standards for clothes washers and dishwashers will also reduce water waste, helping to reduce stresses on water supplies in drought-stricken areas,” the report said.
Smaller states will save about 100 million gallons annually, while the most populated will save billions each year. Cumulatively the entire country will save more than 1 trillion gallons of water over the next two decades, the report said.
“These updated standards will save consumers money and reduce air pollution for years to come, just by the use of more efficient appliances. It’s a clear win for Americans’ wallets,” PIRG Energy and Utilities Program Director Abe Scarr said in a statement. “For households and businesses across the country, the prospect of sustained annual utility bill savings and cleaner air is welcome news.”
