Is it Time to Consider Privatizing Energy Star?
As federal support disappears, the private sector could potentially save the popular program
The Energy Star label has long been a trusted mark of energy efficiency on everything from freezers to washing machines to air conditioners. Now that the U.S. Environmental Protection Agency (EPA) is planning to cut the program, the future of Energy Star is uncertain.
But according to EPA Administrator Lee Zeldin, that doesn’t mean the program has to end. At a recent House hearing, Zeldin suggested Energy Star could be privatized, stating, “This program is an example of one that can be run outside of government.” He added that several entities had already reached out to him, asking about potentially acquiring the program.
At first glance, the idea of shifting Energy Star from a government-administered program to a private or nonprofit entity may seem like a bad idea. After all, the label has built its credibility on maintaining a neutral stance. But as political winds shift, privatization could offer a viable lifeline, though not without its challenges.
But the program remains highly popular, and HVAC manufacturers and trade associations are not prepared to let it disappear without a fight. In a joint letter dated March 20, 2025, 14 industry associations and 19 prominent HVAC manufacturers urged Zeldin to preserve the Energy Star program. They described it as “an effective non-regulatory program and partnership between the government and the private sector.”
Launched in 1992, Energy Star has served as a go-to guide for consumers and contractors alike, helping identify high-performing products that reduce energy use and lower utility bills. For HVAC contractors, Energy Star has been more than a sticker -- it’s been a sales tool, a compliance guide, and a brand that customers trust. The label has helped distinguish high-efficiency systems and has often been tied to utility rebates and other incentives.
Some believe that transitioning Energy Star to a private or nonprofit organization could potentially inject new life into the program. For example, handing the reins to a nonprofit or industry-led coalition could not only preserve the label, but also allow for more flexible, responsive management. And without relying on the whims of annual congressional budgets, the program could pursue outside funding through partnerships, licensing, and other arrangements.
Of course, privatization also comes with challenges. First and foremost is the issue of trust. Energy Star has succeeded largely because it has been perceived as a neutral, science-based authority. If the program is overseen by industry groups with a vested interest in product sales, consumers may begin to question the integrity of the label. The perception -- even if unfounded -- that the fox is guarding the henhouse could quickly erode decades of brand integrity.
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There are also logistical and legal hurdles. Energy Star is not just a logo -- it encompasses detailed performance standards, product testing protocols, and data analysis. As a result, it may be difficult to find a single organization capable of overseeing every aspect of the program.
One potential candidate, however, could be the Air-Conditioning, Heating, and Refrigeration Institute (AHRI), which has already expressed an interest in the program. In a recent article in NOTUS, AHRI spokesperson, Francis Dietz, said, “While it is true that we support the continuation of Energy Star as a government program, if it were to cease as such, it is not beyond the realm of possibility that we would be interested in running it. We do not currently have plans to do so, although we do independently test and certify the energy efficiency performance of the equipment that qualifies as Energy Star.”
Other potential stewards of the program could include nonprofit groups like the Alliance to Save Energy or the American Council for an Energy-Efficient Economy (ACEEE), both of which have extensive experience promoting energy efficiency and collaborating across the public and private sectors. The ACEEE, however, has already called the move to scrap the Energy Star program illegal. In a press release, the organization said that Zeldin was incorrect in claiming the program was not required by Congress and could simply be run by a private entity.
“The Energy Policy Act of 2005 -- passed on a bipartisan basis and signed by President George W. Bush -- included a specific legal requirement for federal agencies to run the Energy Star program,” said the press release. “The law says that ‘responsibilities under the program shall be divided between the Department of Energy and the Environmental Protection Agency in accordance with the terms of applicable agreements between those agencies.’”
A third option might involve creating a coalition of stakeholders, including manufacturers, utilities, contractors, and energy advocates, that could form a new nonprofit governance structure, similar to how organizations like the Green Building Council manage the LEED certification program. Of course, any new overseer would need strict guidelines and third-party verification processes to avoid conflicts of interest and maintain consumer trust.
Regardless of how this plays out, the fate of Energy Star matters -- especially for HVAC contractors. The label influences what customers ask for, as well as which products qualify for rebates. If the program disappears or loses credibility, contractors lose a valuable selling point, particularly as high-performance equipment becomes increasingly important in meeting building codes, decarbonization goals, and customer expectations.
