In the last 20 years, refrigerators have become ALOT more efficient. Based on data from the American Council for an Energy-Efficient Economy, a new typical refrigerator uses only 25% as much electricity as one sold in the 1970’s despite new features such as defrost and ice-making. Refrigerators sold today are also cheaper in real dollar terms as an average refrigerator in 2010 cost only half as much as in the mid-1970’s.
New Fridge vs. Old Fridge Savings Calculations
An average size refrigerator (19-21.4 Cubic Feet) currently uses approximately 375 kilowatt hours (kWh) each year according to EnergyStar ratings, which would cost approximately $40 a year to run using the average electricity price in the U.S. ($ per kWh are between $.079 in Oklahoma to $0.26 in Hawaii and an average of $0.1041 per the EIA). Here are the average savings based on earlier models same average $0.1041 per kWh:
- 1990-1992: 1,539 kWh or $160 per year – $40 = Annual Savings of $120 ($1,800 in 15 years)
- 1993-2000: 1,031 kWh or $107 per year – $40 = Annual Savings of $67 ($1,005 in 10 years)
- 2001-2010: 651 kWh or $68 per year – $40 = Annual Savings of $28 ($420 in 10 years)
New Fridge vs. Old Fridge Energy Return on Investment
A new energy efficient fridge costs around $600 and many states offer rebates of $50 or so. This means that if your fridge is currently from 1990-1992 and you are saving $120 per year (per the analysis above) and the fridge lasts 15 years, your total savings would be $1,800 or an internal rate of return of 18%!!
