What is it?
Appliance and equipment efficiency typically refers to larger devices in residential buildings that run on electricity, such as refrigerators, freezers, washing machines, dishwashers, dryers, and televisions. Energy-efficient appliances or equipment will consume less electricity when operated compared to inefficient devices. Therefore, boosting appliance efficiency reduces the CO₂,
methane, and nitrous oxide emissions from electricity generation. As of 2022, the energy consumed by household appliances globally was more than twice the total energy used to cool both residential and nonresidential buildings, and about half the energy used for heating. To drive higher efficiency for these devices, various countries have established regional energy efficiency standards, rating systems, and labeling programs. Currently, homeowners can readily access a variety of options on the appliance market, and less efficient devices can easily be replaced. However, income levels, especially in low- and middle-income countries, may affect people’s actual ability to purchase certain appliances, although these devices are increasingly becoming cheaper.
Does it work?
Improving the efficiency of appliances and equipment functionally reduces the energy required to run these devices. Various field studies have demonstrated the effect of efficiency gains on lowering electricity consumption. However, the rise in appliance ownership per household and the growing total number of households have offset the collective climate impact expected from efficiency improvements. Globally, the number of households grew from about 1.5 billion in 2000 to 2.2 billion in 2021. Considering the concurrent increase in the global average units owned per household, the number of appliances in use has essentially doubled over the same period. For example, we estimate that over two decades, the number of television units owned grew from about 1.4 to 2.8 billion units, refrigerators grew from 0.9 to 1.7 billion units, and washing machines grew from about 0.6 to 1.1 billion units. This growth resulted in rising electricity consumption by appliances annually, from 2,880 TWh in 2000 to 5,734 TWh in 2022, which translates to a 99% global increase, largely driven by the Asia-Pacific region.
Why are we excited?
Boosting appliance and equipment efficiency allows homeowners to realize operational cost savings as a result of lower electricity consumption and utility bills. Compared to less efficient devices, using appliances with higher efficiency ratings functionally reduces peak electricity demand, alleviating strain on the electric grid. The advent of smart devices and the Internet of Things (IoT) also helps to automate the operation of these appliances, and thereby optimize their runtime while minimizing the energy consumed. Initial purchasing costs are also declining, making efficient appliances more accessible and affordable. Access to high-efficiency appliances also yields additional benefits. For example, access to energy-efficient refrigerators and freezers means that food waste can be minimized with less energy, leading to better food security. Similarly, multimedia equipment, such as television sets, offers access to critical information. Further cuts in GHG emissions are also possible as the electric grid transitions to renewable energy sources.
Why are we concerned?
Despite the potential benefits, the efficiency improvements in household appliances and equipment have not effectively translated into a positive climate impact. This is largely due to the significant rebound effect, or the increase in appliances owned by households as these devices become cheaper and more efficient. Considering the role of appliances in providing a greater quality of life, limiting the increase in appliance purchases is dismissible. The markets for appliances and equipment in many countries also still consist of pre-owned devices, which are less efficient. Some countries, such as Ghana, have established legislation to prevent the importation of pre-owned devices. This approach ensures that the appliances bought by homeowners will run on the newest, most efficient technologies. Recent findings from regions with stringent energy rating systems also suggest that regulations and programs can lead to a 50% cut in the electricity consumed by appliances. Global initiatives, such as the United for Efficiency (U4E) partnership, which seeks to shift appliance markets in low- and middle-income countries into high-efficiency devices, are increasingly needed for the potential energy savings to be realized as a climate solution.