Trump plans to end the Energy Star program—here’s what that means for homeowners

The U.S. Environmental Protection Agency (EPA) plans to eliminate Energy Star—a decades-long program known for its iconic blue labels that certify appliances to meet certain energy efficiency standards— and helps Americans save approximately $40 billion on energy bills annually. 

The program’s impending closure would impact millions of U.S. households and businesses that rely on the Energy Star logo to identify the most efficient household products and appliances to save energy and money and protect the environment. Energy Star-certified appliances are estimated to save U.S. households up to 50% on their energy usage annually, which equates to roughly $450 on their utility bills each year. 

The elimination is part of a broader EPA reorganization plan that involves the dissolution of the EPA's Office of Atmospheric Protection and the Office of Air Quality Planning and Standards, according to Reuters. 

In a statement to EnergySage on Wednesday, the EPA said of the proposed cut: “With this action, EPA is delivering organizational improvements to the personnel structure that will directly benefit the American people and better advance the agency’s core mission, while Powering the Great American Comeback.”

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Energy Star is a rating system backed by the U.S. Environmental Protection Agency (EPA) that helps shoppers identify energy-efficient products, including appliances, air conditioners, heat pumps, water heaters, and lighting. The certification is based on strict energy efficiency and performance standards set by the EPA, such as the durability, expected service life, and measurable energy usage of an appliance. The Energy Star emblem is awarded to products that achieve a level of energy efficiency above the current industry standard. 

The Energy Star program has helped reduce nationwide energy costs by $450 billion and has resulted in more than 4 billion metric tons of greenhouse gas reductions since its inception in 1992, according to the EPA. 

The blue symbol is recognized by nearly 90% of American households, and is intentionally purchased by more than 45% of U.S. households each year, making it the single most trusted environmental label in the nation, according to Energy Star.

Residential electric bills, which are already skyrocketing across the nation, could rise even more if the Energy Star program is ended. According to EnergySage data, electricity rates spiked in 67% of states between the first quarters of 2024 and 2025, and are continuing to increase rapidly.

Energy Star-certified homes and apartments incorporate energy-efficient designs into their construction and are typically 20% to 30% more energy efficient than a standard home. This can save the average American family about $500 a year on utility bills. 

Energy Star certifications also apply to devices like smart thermostats and smart plugs, which can help homeowners lower electricity use around their home and cut costs. 

Under the Inflation Reduction Act of 2022, homeowners can claim both home energy rebates and federal tax credits for energy-efficient upgrades— and many of those types of upgrades currently qualify for tax credits and rebates because they are Energy Star certified. 

The IRA implemented two home energy tax credits: the Energy Efficient Home Improvement Credit, which provides homeowners with up to $3,200 in tax credits per year for energy efficiency improvements, and the Residential Clean Energy credit, which provides a 30% tax credit to cover the costs of renewable energy system installations, such as solar panels and geothermal heat pumps. Energy Star-certified products that qualify for the tax credits vary from solar hot water heaters to doors and windows that meet Energy Star standards.

If the Energy Star program is eliminated, it’s unclear how it will impact these tax credits and rebates. The answer will likely depend on whether House Republicans repeal the green energy tax credits associated with the IRA in their budget bill, which they aim to pass by July 4. 

While the future of home energy rebates and tax incentives is still a question mark, homeowners who are considering energy-conscious home upgrades this year should act now—the sooner, the better.