Replacing Home Appliances: Tips for your home energy planning

When a major home appliance suddenly stops working, there’s no need to panic.  You may have heard of (or experienced) horror stories like a water heater meltdown, a faulty furnace on the coldest night of the year, or a blown air conditioner at peak summer heat. Most appliances are replaced when they stop working, rather than preemptively.  Planning for an appliance replacement before an emergency can help you make the best choice for your budget, comfort, and home health in an otherwise stressful and urgent situation. Regardless of whether you’ve planned out future appliances or need an emergency replacement, here are some questions to ask and tips to consider before making a decision.   

Questions to ask 

• Can my appliance be repaired rather than replaced?
• What costs will come with the new appliance?
• What level of efficiency and other energy considerations are a priority? Are environmental concerns a priority? 
   

Is repair an option? 

When an appliance starts to malfunction or stops working, you will want to consider whether it can be repaired, rather than replaced.  Check the age of the appliance and its expected lifespan (see table below) and call maintenance professionals to inquire about estimated repair costs. You’ll want to consider your financial situation and whether it’s worth paying for repairs or putting those funds towards the purchase of new equipment. As a general rule, heating and cooling systems should be serviced each year and preventative maintenance can reduce the likelihood of expensive repairs, keep the appliance running efficiently, and give you insights on when a full replacement may be necessary. 
 

Expected lifespan 

The table below provides a general guideline of how many years common appliances tend to last. To prepare for future replacements, create an inventory of appliances in your home noting their age, condition, and level of energy efficiency.  

Cost calculations and picking your replacement  

If you need to replace an appliance, cost is likely a priority. As you research suitable replacements, add up the initial equipment purchase price, any installation-related costs, and lifetime estimated fuel costs.  Ideally, you should shop around for options and get multiple quotes. The level of carbon emissions created by different appliances is another factor you consider when deciding which appliance to purchase. 

Total cost of use for an appliance = cost of equipment + install costs + lifetime fuel costs 

Generally speaking, more efficient equipment costs more money up front, but you will be spending less over time as you use less fuel/energy to operate the equipment. Thankfully there are utility, state, and federal incentives available that make efficient options cost-competitive with standard, less efficient models. This means you can save both on the up-front purchase and on energy costs over the life of the appliance.  

Rebates and other incentives are meant to help offset the higher upfront costs for energy-efficient and electric options. Your electric or gas utility provider may provide rebates for specific technologies like heat pumps or high efficiency furnaces. Your electric utility may have special rates that can save money (like an electric heat rate). Your city or county may have additional resources or incentives for upgrades as well. Minnesota state rebate programs are currently in development, set to be released sometime in 2025. 

The cost of running an appliance is based on the cost of fuel or electricity charged by your utility and the amount of use it gets in your home. Reviewing the Energy Guide label can give an estimate for yearly costs to run an appliance, though not all appliances have an Energy Guide sticker, and the figures on Energy Star stickers are national averages. Please note that utility rates will change over the years, with both natural gas and electricity costs shifting to varying degrees. 

Here is a simple checklist to ensure you are utilizing all cost-saving incentives when replacing equipment: 

• Check to see if the appliance you are interested in purchasing is eligible for a Federal tax credit
• Connect with your contractor about any available state, utility, or local rebates
• Learn about and apply for special electric utility rates
• Check your city or county website for information on local incentives, including special energy-related financing  
   

Income-qualified assistance 

Income-qualified households may be eligible for federal- or utility-level assistance programs that help with appliance replacement. The Energy Assistance Program (EAP) helps households afford energy bills and may offer to fix or replace broken heating equipment. Those who need an emergency repair or replacement should contact their local energy assistance provider.   

Utilities and Weatherization Assistance Program providers may also offer income-qualified appliance replacement programs and options.    

Efficiency, environmental, and health considerations 

Replacing an appliance presents a unique opportunity to meet household needs and goals for many years to come. An energy-efficient appliance could save you money in the long run and make your home healthier and more comfortable. Electric options rely on less fossil fuels and may be more economical.  

To find the right equipment with high energy efficiency, consider the Energy Star website, the federal government-backed rating for appliance efficiency. 

When choosing which appliance to install, you may want to consider the health impacts of the options available to you. Emissions from natural gas and methane can negatively affect respiratory health. Children living in a home with gas appliances—specifically gas stoves—are 42% more likely to experience asthma symptoms. When installing new products and materials, consider using the least toxic product or material feasible to effectively do the job. If you ultimately choose to install a gas appliance, make sure you have sufficient ventilation to lower the risks associated with emission exposure. If you ultimately choose to install an electric appliance, assess whether you have room on your electrical panel and if you need any new outlets installed. 

Appliance replacements are an important way homeowners can impact their energy use and costs. Planning ahead for an appliance breakdown is sure to help you make an educated decision that meets your needs.