Every appliance has two costs: the cost you pay when you buy it, and the cost you pay to operate it. The operational cost of an appliance comes from how much electricity it consumes, so if you have a cheap electricity plan in Texas, it may not cost you very much with any ordinary appliance, but with an energy efficient model, you could save even more.

The first thing to do when searching for a new appliance is to look at the Energy Guide. This guide is a federally mandated tag that is added onto all appliance packaging to tell you approximately how much it will cost to operate the appliance for a year based on the national average for electricity rates and a set number of hours of use. Since it’s based on the national average, you could have an operational cost lower or higher, depending on where you live. For this reason, they also include the estimated yearly energy consumption in kilowatt hours (kWh). And it’s always really easy to spot this tag because it’s a happy, bright yellow color.

The next thing you want to look for is an Energy Star label. Energy Star certifies appliances and electronics that are at least 20% more efficient than the standard for that class of appliance. It’s possible that they could be 30% or even 50% more efficient, depending on the device. An Energy Star logo may appear on the packaging, but if the appliance is certified, it will definitely appear on the Energy Guide.