Switching to a five-tick air-conditioner could save you around S$303 per year compared to a two-tick model. (Photo: iStock/Ake Ngiamsanguan)

CNA Explains: With rising energy costs, how much can an energy-efficient home appliance save you?

How much can you save with an energy-efficient appliance? Should you switch if your appliance is still in good working order? CNA breaks it down for you.

09 Apr 2026, 09:41 by Vanessa Lim · CNA · Join

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SINGAPORE: A surge in global energy prices triggered by the Middle East conflict could translate into higher electricity bills in the months ahead.

With the government urging households and businesses to curb energy use, is it time to think about using the S$400 (US$313) climate vouchers as a way to save on utility expenses?

Under the enhanced Climate Friendly Households Programme (CFHP), the vouchers allow eligible households to purchase energy-efficient appliances - lowering overall power consumption.

Although the United States and Iran agreed to a two-week ceasefire on Tuesday (Apr 7), damage to oil infrastructure is expected to constrain supply and keep energy prices elevated for months.

Deputy Prime Minister Gan Kim Yong said the regulated electricity tariff, which most Singapore households pay, increased by 2.1 per cent to 27.27 cents/kWh for the second quarter of 2026, adding that this is “modest” relative to the spike in fuel prices.

However, he warned that households should expect a much sharper increase in the next tariff adjustment, which will fully reflect the higher fuel costs.

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HOW MUCH CAN I SAVE WITH ENERGY-EFFICIENT APPLIANCES?

So, what does this mean for your wallet - and what can you do about it?

One way to manage rising bills is by choosing appliances with higher tick ratings. The more ticks they are awarded, the more energy-efficient they are.

An appliance that uses less electricity to do the same job is more efficient, and will also have a direct impact on your electricity bill.

While these energy-efficient models may cost more upfront, they can lower your electricity bills over time.

According to the National Environment Agency (NEA), switching to a five-tick air-conditioner could save you around S$303 per year compared to a two-tick model.

This is based on an electricity cost of 29.9 cents/kWh (before GST), and assuming that a multi-split 7.5kW cooling capacity air-conditioner is used eight hours daily.

Similarly, switching from a two-tick to a three-tick refrigerator can save about S$59 a year.

With higher tariffs expected in the quarters ahead, savings will likely go up.

Professor Lee Poh Seng, executive director of the Energy Studies Institute at the National University of Singapore, said the savings can be significant - but it really depends on what appliance you’re replacing and how often you use it.

“The biggest bill savings usually come not from small plug loads, but from the major, long-running appliances, above all air-conditioners, followed by refrigerators and water heaters,” he said, adding that these make up about 80 per cent of electricity consumption in a typical household.

WHAT CAN I USE MY CLIMATE VOUCHERS ON?

As of Apr 1, there are 775 participating retail outlets where you can use your climate vouchers.

These vouchers can be used to buy:

Refrigerators: Three-tick and above
Air-conditioners: Five-tick
Direct-current fans: Typically labelled as DC fan. Stand fans, ceiling fans, and table fans that use DC motors are eligible, while DC fans with non-LED lights are not eligible.
LED lights: Two-tick and above are eligible, but those with the old round energy label are not eligible. Some examples of eligible LED lights without energy labels include downlights, spotlights, and circular tubelights.
Water heaters: Five-tick
Washing machines: Four-tick
Water closets: Three-tick
Sink, basin or water taps: Three-tick
Shower fittings: Three-tick

From Apr 15, the programme will be expanded to include five-tick clothes dryers and induction stoves.

HOW DO I CHOOSE THE RIGHT APPLIANCE?

For air-conditioners, it is important to choose the right cooling capacity. If it is too big or too small for your space, it will not run efficiently - and that can drive up your bills.

Don’t just look at the upfront price - consider the “life cycle cost”. That means adding the purchase price to the estimated electricity cost over about seven years.

For refrigerators, go for the smallest size that fits your needs. Extra features like ice makers or water dispensers may be convenient, but they also use more energy.

Just like air-conditioners, you should look at the life cycle cost for refrigerators, which are typically used for about 10 years.

WHY FIX WHAT ISN'T BROKEN?

If your appliance is still working perfectly fine, should you replace it anyway?

Short answer: It depends.

Prof Lee said the better question is not “Is it still working?” but “Is it still working efficiently enough to justify keeping it?" - a more useful test both economically and environmentally.

If you have an older, inefficient air-conditioner that runs for many hours a day, the economics of replacing it can be quite compelling, particularly with the CFHP offsetting part of the upfront cost, he said.

From an environmental point of view, it may not be the best move to replace a relatively new, lightly used appliance that is already reasonably efficient.

However if you have an old, energy-hungry unit that will continue consuming excessive electricity for years, this can make good environmental sense, he said.

Prof Lee added that the fastest savings often come from simply using your biggest appliances more efficiently - especially air-conditioning.

For instance, using a fan instead of air-conditioning could save about S$441 a year. Even using the air-conditioner briefly before switching to a fan could save around S$386 annually.

GETTING MORE FOR GOING GREEN

Besides climate vouchers, there are existing schemes to encourage households to switch to energy and water efficient appliances.

For instance, the North West District has a scheme to invite residents to “green” their homes by meeting a set of criteria, such as using higher-rated appliances (for example, energy-efficient air-conditioners and refrigerators), and installing efficient water heaters.

Households that meet these benchmarks can receive tiered cash rewards - ranging from about S$100 to S$500 - depending on how many criteria they fulfil.