After months of uncertainty and industry-wide anxiety, it appears that the ENERGY STAR program will carry on business as usual.
The One Big Beautiful Bill proposed eliminating the ENERGY STAR program entirely, sparking serious concerns among builders, manufacturers, utilities, and consumers.
Since its inception in 1992, ENERGY STAR has played a pivotal role in improving energy efficiency across sectors. The program has helped American families save over $500 billion in utility bills and has prevented an estimated 4 billion metrictons of greenhouse gas emissions.
Its iconic blue label has become a trusted symbol for identifying energy-efficient appliances, lighting, homes, and buildings—fostering a national marketplace that prioritizes sustainable products and practices.
Why ENERGY STAR Matters
For homebuilders and developers, ENERGY STAR certification has long served as a powerful marketing tool, signaling a commitment to quality construction and energy performance.
For manufacturers, the label offers product differentiation and credibility in a crowded market. And for consumers, it simplifies purchasing decisions, helping them reduce energy bills and minimize environmental impact.
That’s why the proposed termination of the program set off alarm bells. Industry experts warned of the likely consequences: increased energy use, higher household utility costs, and a chaotic patchwork of efficiency standards.
Mobilizing to Save ENERGY STAR
In response, an impressive coalition of advocates mobilized to defend the program. Builders, developers, manufacturers, consumer groups, utilities, and public officials made their voices heard. Their message to lawmakers was clear: don’t mess with ENERGY STAR.
Given that the program delivers approximately $40 billion in annual energy savings at a cost of only $32 million, critics of the cancellation pointed out that ENERGY STAR is one of the most cost-effective federal programs in existence.
The pressure apparently worked. Earlier this week, the House Appropriations Committee adopted a bipartisan amendment to maintain full funding for ENERGY STAR at $32 million for the coming fiscal year. While the bill still needs to pass the full House, and additional negotiations may be required with Republican lawmakers, this development is a promising sign of bipartisan support.
You can view the full House Appropriations Committee bill here.
Not Out of the Woods Yet
Although the amendment signals momentum in favor of the program, ENERGY STAR’s long-term future remains uncertain. The legislation still needs to make it through Congress. With the House expected to recess for August, no final decisions are likely before September.
That means advocates must remain vigilant, especially as broader political efforts to roll back clean energy and climate policies gain traction.
Why Continued Support Matters
ENERGY STAR delivers meaningful cost savings to homeowners—especially important at a time when energy burdens are rising, insurance rates are skyrocketing, and climate-driven disasters are becoming more frequent.
From establishing appliance standards and influencing utility rebate programs to shaping energy codes and supporting public procurement policies, ENERGY STAR provides a trusted, science-based foundation for energy efficiency.
Utilities rely on ENERGY STAR to determine rebate eligibility for appliances, HVAC systems, and lighting.
States and cities reference ENERGY STAR in local energy codes and performance benchmarks.
Consumers turn to the label for credible guidance in making efficient and sustainable choices.
Even amid federal funding uncertainty, existing ENERGY STAR certifications remain valid. Products, homes, and buildings that have earned the label will retain it indefinitely—that is, unless program criteria are revised, which is unlikely in the near term.
Still, without adequate federal investment, ENERGY STAR’s visibility and momentum could begin to wane. And that would be a major loss for the climate, the economy, and consumer well-being.
Incentives Still in Limbo
Even as ENERGY STAR continues—for now, there are growing questions about critical energy efficiency incentives:
The 45L tax credit, originally authorized through 2032 by the Inflation Reduction Act, has now been curtailed and will expire in June 2026. This credit doubled the number of ENERGY STAR-certified homes, growing from approximately 125,000 to 350,000—representing nearly a quarter of all new homes in the U.S.
The 25C credit, which offers tax benefits to homeowners for qualified energy-efficient home improvements (like heat pumps and water heaters), is now scheduled to expire on December 31, 2025.
These changes risk slowing momentum in high-performance building. New incentive structures will be necessary to ensure ongoing participation from builders and developers and to uphold consumer interest.
A Call for Continuous Improvement
While ENERGY STAR’s preservation is cause for cautious celebration, it’s also an opportunity for renewal. The program has proven its value, but it must evolve to meet today’s challenges.
Incorporating resilient building practices into ENERGY STAR standards would be a natural next step. As climate risk accelerates, homes must not only be efficient, but they must also be climate responsive.
ENERGY STAR remains one of the most recognizable and impactful sustainability programs in the U.S.—a trusted resource for consumers, a performance benchmark for builders, and a policy foundation for governments and utilities.
Its continued existence is a testament to the power of public-private collaboration and bipartisan climate action. But the fight isn’t over. Advocacy, innovation, and accountability will be essential to protect and modernize ENERGY STAR.
Ready to Get Smarter?
As the market changes, one thing won’t: Green Builder Media’s commitment to giving you impactful tools to stay relevant and resilient. COGNITION Smart Data is your roadmap for navigating change — and winning in a market that rewards companies who adapt.
As the building industry evolves, COGNITION Smart Data will help you stay ahead of the curve. Whether you’re diving into the basics of green building or seeking advanced strategies to achieve net zero carbon goals, we’re here to empower you every step of the way.
COGNITION Smart Data, Green Builder Media’s pioneering suite of market intelligence and data services, uses cutting-edge cognitive learning technology to deliver the insights you need to align products, messaging, and innovation with what homebuyers actually want.
COGNITION is the only market insights platform specifically engineered for the building industry’s sustainability transformation. We track evolving consumer behaviors, emerging technologies, policy shifts, competitive benchmarks, and market demand signals so you can adjust faster, sell smarter, and grow revenue—confidently.
As cofounder and CEO of Green Builder Media, Sara is a visionary thought leader and passionate advocate for sustainability. A former venture capitalist, she has participated in the life cycle (from funding to exit) of over 20 companies, with an emphasis on combining sustainability and profitability. She lives in Lake City, Colo., with her husband, where she is an avid long-distance runner, snowboarder, and Crossfit trainer. She is also on the Board of Directors at Dvele, runs the Rural Segment for Energize Colorado, and is a former County Commissioner.
The Future of ENERGY STAR
After months of uncertainty and industry-wide anxiety, it appears that the ENERGY STAR program will carry on business as usual.
The One Big Beautiful Bill proposed eliminating the ENERGY STAR program entirely, sparking serious concerns among builders, manufacturers, utilities, and consumers.
Since its inception in 1992, ENERGY STAR has played a pivotal role in improving energy efficiency across sectors. The program has helped American families save over $500 billion in utility bills and has prevented an estimated 4 billion metric tons of greenhouse gas emissions.
Its iconic blue label has become a trusted symbol for identifying energy-efficient appliances, lighting, homes, and buildings—fostering a national marketplace that prioritizes sustainable products and practices.
Why ENERGY STAR Matters
For homebuilders and developers, ENERGY STAR certification has long served as a powerful marketing tool, signaling a commitment to quality construction and energy performance.
For manufacturers, the label offers product differentiation and credibility in a crowded market. And for consumers, it simplifies purchasing decisions, helping them reduce energy bills and minimize environmental impact.
That’s why the proposed termination of the program set off alarm bells. Industry experts warned of the likely consequences: increased energy use, higher household utility costs, and a chaotic patchwork of efficiency standards.
Mobilizing to Save ENERGY STAR
In response, an impressive coalition of advocates mobilized to defend the program. Builders, developers, manufacturers, consumer groups, utilities, and public officials made their voices heard. Their message to lawmakers was clear: don’t mess with ENERGY STAR.
Given that the program delivers approximately $40 billion in annual energy savings at a cost of only $32 million, critics of the cancellation pointed out that ENERGY STAR is one of the most cost-effective federal programs in existence.
The pressure apparently worked. Earlier this week, the House Appropriations Committee adopted a bipartisan amendment to maintain full funding for ENERGY STAR at $32 million for the coming fiscal year. While the bill still needs to pass the full House, and additional negotiations may be required with Republican lawmakers, this development is a promising sign of bipartisan support.
You can view the full House Appropriations Committee bill here.
Not Out of the Woods Yet
Although the amendment signals momentum in favor of the program, ENERGY STAR’s long-term future remains uncertain. The legislation still needs to make it through Congress. With the House expected to recess for August, no final decisions are likely before September.
That means advocates must remain vigilant, especially as broader political efforts to roll back clean energy and climate policies gain traction.
Why Continued Support Matters
ENERGY STAR delivers meaningful cost savings to homeowners—especially important at a time when energy burdens are rising, insurance rates are skyrocketing, and climate-driven disasters are becoming more frequent.
From establishing appliance standards and influencing utility rebate programs to shaping energy codes and supporting public procurement policies, ENERGY STAR provides a trusted, science-based foundation for energy efficiency.
Even amid federal funding uncertainty, existing ENERGY STAR certifications remain valid. Products, homes, and buildings that have earned the label will retain it indefinitely—that is, unless program criteria are revised, which is unlikely in the near term.
Still, without adequate federal investment, ENERGY STAR’s visibility and momentum could begin to wane. And that would be a major loss for the climate, the economy, and consumer well-being.
Incentives Still in Limbo
Even as ENERGY STAR continues—for now, there are growing questions about critical energy efficiency incentives:
These changes risk slowing momentum in high-performance building. New incentive structures will be necessary to ensure ongoing participation from builders and developers and to uphold consumer interest.
A Call for Continuous Improvement
While ENERGY STAR’s preservation is cause for cautious celebration, it’s also an opportunity for renewal. The program has proven its value, but it must evolve to meet today’s challenges.
Incorporating resilient building practices into ENERGY STAR standards would be a natural next step. As climate risk accelerates, homes must not only be efficient, but they must also be climate responsive.
ENERGY STAR remains one of the most recognizable and impactful sustainability programs in the U.S.—a trusted resource for consumers, a performance benchmark for builders, and a policy foundation for governments and utilities.
Its continued existence is a testament to the power of public-private collaboration and bipartisan climate action. But the fight isn’t over. Advocacy, innovation, and accountability will be essential to protect and modernize ENERGY STAR.
Ready to Get Smarter?
As the market changes, one thing won’t: Green Builder Media’s commitment to giving you impactful tools to stay relevant and resilient. COGNITION Smart Data is your roadmap for navigating change — and winning in a market that rewards companies who adapt.
As the building industry evolves, COGNITION Smart Data will help you stay ahead of the curve. Whether you’re diving into the basics of green building or seeking advanced strategies to achieve net zero carbon goals, we’re here to empower you every step of the way.
Subscribe to COGNITION Smart Data today!
About COGNITION Smart Data
COGNITION Smart Data, Green Builder Media’s pioneering suite of market intelligence and data services, uses cutting-edge cognitive learning technology to deliver the insights you need to align products, messaging, and innovation with what homebuyers actually want.
COGNITION is the only market insights platform specifically engineered for the building industry’s sustainability transformation. We track evolving consumer behaviors, emerging technologies, policy shifts, competitive benchmarks, and market demand signals so you can adjust faster, sell smarter, and grow revenue—confidently.
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By Sara Gutterman
As cofounder and CEO of Green Builder Media, Sara is a visionary thought leader and passionate advocate for sustainability. A former venture capitalist, she has participated in the life cycle (from funding to exit) of over 20 companies, with an emphasis on combining sustainability and profitability. She lives in Lake City, Colo., with her husband, where she is an avid long-distance runner, snowboarder, and Crossfit trainer. She is also on the Board of Directors at Dvele, runs the Rural Segment for Energize Colorado, and is a former County Commissioner.Also Read