Choosing energy-efficient appliances for your home can cost you more up-front, but they will save you money in the long run and reduce your impact on the environment.

There are several factors to consider when buying eco-friendly appliances: their energy-efficiency star rating, how much water they use, the amount of raw materials and energy used to manufacture them, whether or not they can be recycled and the manufacturer's overall carbon footprint.

Understanding star ratings

All refrigerators, freezers, clothes washers and dryers, dishwashers, air conditioners and televisions in Australia are required to carry a label displaying their energy-efficiency star rating. This ranges from one to 10 red stars with a higher number of stars indicating a more eco-friendly appliance. The label also provides an estimate of the appliance's annual energy consumption in kilowatt hours per year. Though this number might not mean much to the average consumer, it provides a basis for comparison.

Washing machines and dishwashers also carry a six-star Water Efficiency Labelling Scheme (WELS) rating. The higher the blue-star rating, the better.

Washers and dryers

To be considered energy-efficient, a washing machine must have at least a 3.5 star energy rating and a 4 star water rating. Though more expensive than a less efficient machine, it will save you 25 per cent of running costs over its lifetime. Front-loading washing machines use half as much energy as top loaders, and you can further reduce your energy bills by only doing full loads and washing clothes in cold water.

Hanging your clothes to dry is the cheapest and most eco-friendly option, but look for a minimum 2 star rating when buying a dryer.

Dishwashers

Opt for a dishwasher with an energy rating of 3.5 stars or more — each star reduces your usage costs by 30 per cent per year. Use the economy cycle for even greater savings.

Ovens and cooktops

These appliances don't have star ratings, but many factors influence their energy efficiency. Natural gas creates about one quarter the amount of carbon dioxide compared to electricity produced by burning coal, so gas ovens are best. If you buy an electrical oven, choose a model that is fan-forced for a 30 per cent energy savings compared to a conventional oven.

Induction cooktops are by far the most efficient option. They use 65 per cent less energy than electricity and about half the energy of gas.

Refrigerators and freezers

Have you been eyeing that stainless steel monster at the shop? Before you buy it, make sure you really need all that space as cooling an empty fridge wastes energy and money. But purchasing a fridge that is the right size for your needs and has an energy rating of 4 stars or higher can add up to significant savings. Old fridges are highly inefficient and squander incredible amounts of energy.

Heaters and air conditioners

Each extra star on a gas heater will save you 10 per cent in usage costs, and turning the temperature down by 1 degree on the thermostat will save you the same amount. Reduce energy consumption by locating heaters away from windows, closing blinds and shutting doors.

The most eco-friendly alternative to air conditioning is a good old fan. If you live in a dry area of Australia, opt for an evaporative air cooling system which uses one tenth of the power of an air conditioner. If you do choose air conditioning, buy a unit that has at least a 4.5 star energy rating. You can also keep your house cool by insulating it and installing outdoor shades to minimise the amount of sun that gets in.

Other appliances

Big-screen plasma and LCD televisions use an enormous amount of energy, so choose the smallest one you can live with. Microwaves use less electricity than ovens or stoves — use them whenever possible. When it comes to all other appliances, look at the energy rating and other factors like size and usefulness before buying.

Looking for more inspiration? Check out our Eco-living section.