ROOM AIR CONDITIONERS
2007 PARTNER RESOURCE GUIDE
                                 ENERGY STAR

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SECTION I  : CONSUMER INFORMATION
           LEARN MORE AT
           energystar.gov
ENERGY STAR is a government-backed
program that helps consumers identify the
most energy-efficient products.
This document is designed to help partners promote ENERGY STAR® qualified
room air conditioners.
 •  Section I includes the latest consumer messaging on product features
    and benefits, as well as fun facts and usage tips.
 •  Section II summarizes the most recent data on ENERGY STAR market
    share, ENERGY STAR criteria, energy savings, cost-effectiveness, and
    recycling old units.

ADVANCED TECHNOLOGY
Room air conditioners that have earned the ENERGY STAR are at least 10% more
efficient than regular models, thanks to a number of advanced features:
 • HIGH-EFFICIENCY FAN MOTORS
   These fan motors use less energy to circulate the air and are quieter to operate.
 • ADVANCED COMPRESSORS
   These compressors draw in more heat from the air so they need less energy.
 • TIMERS
   ENERGY STAR qualified room air conditioners often include timers for better
   temperature control, so the  units only run when needed.

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                                      BENEFITS FOR CONSUMERS

                                       •  INEFFICIENCY COSTS MONEY! Save with ENERGY STAR.
                                          When shopping for a new room air conditioner, select an ENERGY STAR
                                          qualified model instead of a regular one and you'll cut your cooling costs by
                                          10%. Depending on your climate, this could mean savings of $20 to $300 over
                                          the lifetime of the unit.
                                       •  ENVIRONMENTALLY FRIENDLY
                                          Because they use less energy, ENERGY STAR room air conditioners reduce
                                          air pollution and greenhouse gases caused by burning fossil fuels.
                                       •  ENERGY SAVINGS...AND MORE
                                          ENERGY STAR qualified room air conditioners often include timers for better
                                          temperature control. Look for other features, such as digital displays, remote
                                          controls, and directional vents.
                                       •  ENJOY THE PEACE AND QUIET
                                          ENERGY STAR qualified units are quieter to run, so your room isn't just more
                                          comfortable, it's more peaceful too.
LIFETIME SAVINGS OF ENERGY STAR QUALIFIED
ROOM AIR CONDITIONERS1
ALASKA
  $2
NORTHWEST
  $23
                                       MOUNTAIN
                                        $51
                                         WEST NORTH
                                           CENTRAL
                                       EAST NORTH
                                        CENTRAL
                CALIFORNIA
                 $176
        ,«
                   HAWAII
                  $1,145
                                SOUTHWEST
                                  $158  WEST SOUTH
                                           CENTRAL
                                           $225
                                                       $122
                                                                                  r~ MIDDLE
                                                                                   ATLANTIC
                                                                                    $137
                                                                        SOUTH
                                                                       ATLANTIC
                                                                        $118
                                                       FLORIDA
                                                       $298
 1 Lifetime savings are weighted according to 2002 EPA full-load cooling hours and based on regional electric rates from Energy Information Administration (DOE), 2006.

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                                    COMFORT CONSIDERATIONS

                                    RIGHT SIZE, REAL SAVINGS
                                    With room air conditioners, size matters. Consumers often buy a unit that is too large
                                    for the space they wish to cool, thinking that a larger air conditioner means they'll
                                    be more comfortable. Units that are too big may cool a room quickly, but some of
                                    the humidity will remain, leaving the room feeling cold and clammy. A unit that is too
                                    large also wastes energy, raising the utility bill. A properly-sized unit may take slightly
                                    longer to initially cool the space, but it will maintain a more comfortable temperature
                                    and humidity level, while using a lot less energy.

                                    TRY A CEILING FAN
                                    To feel more comfortable in the summer, consider installing an ENERGY STAR qualified
                                    ceiling fan in rooms where you tend to spend the most time. The sensation of air
                                    moving over your skin actually helps you feel cooler, and you may be able to raise the
                                    temperature setting on your room air conditioner.
                                    KEEPTHESUNOUT
                                    Be sure to close blinds during the day to prevent the sun from warming your home.
RIGHT SIZE —REAL SAVINGS
                                                                                                 CHANGE FOR THE
DETERMINE WHICH UNIT SIZE
IS BEST FOR YOU.

• IFTHE ROOM IS SQUARE OR RECTANGULAR,
  multiply the length of the area by the width.
• IFTHE ROOM IS TRIANGULAR,
  multiply the length of the area by the width
  and divide by two.
Most rooms can be further divided into these
basic shapes to determine the square footage:
If your room is otherthan square or rectangular,
ask your sales associate to help you determine
the square footage.

Using the square footage and the chart on the
right, determine the correct cooling capacity.
AREA TO BE
  COOLED
  (sq.ft.)
CAPACITY
 NEEDED
(btu/hour)
100 to 150
150 to 250
250 to 300
300 to 350
350 to 400
400 to 450
450 to 550
550 to 700
700 to 1,000
1,000 to 1,200
1,200 to 1,400
1,400 to 1,500
1,500 to 2,000
5,000
6,000

8,000
9,000
10,000
12,000
14,000
18,000

23,000
24,000

                                                                                                 ENERGYSTAR
MAKE ANY ADJUSTMENTS FOR
THE FOLLOWING CIRCUMSTANCES

• IF THE ROOM IS HEAVILY SHADED,
  reduce the capacity by 10%.
• IFTHE ROOM IS VERYSUNNY,
  increase the capacity by 10%.
• IF MORE THAN TWO PEOPLE REGULARLY
  OCCUPY THE ROOM,
  add 600 Btu/hour for each additional person.

• IFTHE UNIT WILL BE USED IN A KITCHEN,
  increase the capacity by 4,000 Btu/hour.
                                 Note: Consider where you install the unit. If you
                                 are mounting an air conditioner near the corner of
                                 a room, look for a unit that can send the air flow in
                                 the right direction.

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                                  SHOULD  I REPLACE MY OLD UNIT?
                                  RETIRE AT 10
                                  Models that are at least 10 years old use 35% more energy than new ENERGY
                                  STAR qualified models. Replacing your 10-year-old room air conditioner with a
                                  new ENERGY STAR qualified model will save an average of $250 over the lifetime
                                  of the unit.

                                  DON'T FORGET TO RECYCLE THE OLD UNIT
                                  Room air conditioners contain refrigerantthatshould be removed by a trained
                                  technician before the unit is recycled or thrown away. Contact your local solid
                                  waste organization for information on how to properly dispose of your old room
                                  air conditioner.
                     SHOULD I REPLACE MY EXISTING ROOM AIR CONDITIONER?
AGE OF EXISTING
   ROOM AIR
 CONDITIONER
  ANNUAL ENERGY
USE—CURRENT MODEL
     (kWh/year)
 ANNUAL ENERGY
USE—NEW ENERGY
   STAR MODEL
    (kWh/year)
   AVERAGE
ENERGY SAVINGS
   (kWh/year)
  AVERAGE ANNUAL
ELECTRIC BILL SAVINGS
      (dollars)
5years old
10years old
15years old
20 years old
25 years old
829
950
1,015
1,219
1,475
706
706
706
706
706
123
244
309
513
769
$13
$25
$31
$52
$78

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FUN FACTS5
Choose an ENERGY STAR qualified room air conditioner over a conventional model and save enough money over
its lifetime to buy:
     21 pints of Ben & Jerry's ice cream
     11024 oz. bottles of water
     45 two-liter bottles of soft drinks
three slip-and-slide toys
eight tubes of sunscreen
17 beach balls
Choose an ENERGY STAR qualified room air conditioner over a conventional model and save enough energy over
its lifetime to:
  •  Run an ENERGY STAR ceiling fan every night of the summer for nearly nine years.3
  •  Freeze over 43,000 ice cube trays.
  •  Run an ENERGY STAR qualified refrigerator for more than a year and a half.
2 Based on data from national retailer Web sites, 2006.
3 Assumes eight hours of use per night.

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  SECTION II: MARKET DATA
                                       ENERGY STAR ROOM AIR CONDITIONER
                                       MARKET SHARE BY QUARTER4
                                                 |  • Quarter 2   • Quarter 3
^Quarter 1 and 4 not reported due to low sales volume.
                                       HOUSEHOLD SATURATION
                                       Approximately 27% of U.S. homes have a room air conditioner.5 They are typically
                                       found in homes that do not have central air conditioning, such as older housing stock
                                       and homes located in colder climates.

                                       Room air conditioner sales vary widely from year to year and region to region, based
                                       primarily on weather patterns.
REGIONAL MARKET SHARE AND SATURATION
CENSUS DIVISION H^H^^sTu'S , ^S^
3 SATURATION 2006 MARKET SHARE '
NEW ENGLAND
MIDDLE ATLANTIC
SOUTH ATLANTIC
EAST SOUTH CENTRAL
WEST SOUTH CENTRAL
MOUNTAIN
PACIFIC
WEST NORTH CENTRAL
EAST NORTH CENTRAL
44%
41%
15%
21%
19%
35%
11%
19%
22%
54%
52%
47%
39%
18%
12%
21%
21%
18%
4 Figures based on 2006 sales data received from ENERGY STAR national retail partners.
5 29th Annual Portrait of the U.S. Appliance Industry, Appliance Magazine, September 2006.
6 Residential Energy Consumption Survey (RECS), U.S. Department of Energy, 2001.
7 Figures based on 2006 sales data received from ENERGY STAR national retail partners.

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                                      MARKET TRENDS

                                       •   2005 national room air conditioner shipments: 8,031,678.8

                                       •   Room air conditioners are often an impulse purchase, with consumers racing
                                           out to buy an inexpensive unit in the face of a sudden heat wave. As a result,
                                           sales vary widely year-to-year and region-to-region based on weather patterns.
                                           2005 and 2004 sales were much lower than 2003 sales due to cooler summer
                                           temperatures. Room air conditioner sales are also tied more closely to the
                                           economic health of the country than other major appliances.

                                       •   Most retailers do not stock room air conditioners year round. They are
                                           brought in during the summer and may be displayed in areas of the store
                                           devoted to seasonal merchandise. Retailers place orders for room air
                                           conditioners well in advance of the summer season, typically by the fall.
                                       •   Retail and wholesale pricing increased moderately in 2005 as a result of a
                                           more expensive power cord that manufacturers are required to use by federal
                                           mandate.9 Manufacturers also face rising raw materials costs (i.e., copper,
                                           aluminum and steel) and a shortage of compressors.
                                       •   The manufacturing of room air conditioners is increasingly shifting towards
                                           Asian producers. The largest Asian manufacturers are LG Electronics (Korea),
                                           Haier (China) and Samsung (Korea).10 This trend has pushed per-unit margins
                                           down for most vendors, leading to relatively small marketing budgets for
                                           these products.

                                      2005 ROOM AIR CONDITIONER
                                      MANUFACTURER MARKET SHARE11
                                                                        MATSUSHITA 2%
                                                              SHARP 4%
                                                  SAMSUNG 5%

                                                 HAIER 5%
FRIEDRICH4%
       OTHER 8%
                                       WHIRLPOOL 14%
                                         ELECTROLUX 14%
                                         (FRIGIDAIRE)
             LG ELECTRONICS 30%
                                                                                    FEDDERS 14%
8 Association of Home Appliance Manufacturers, Estimated Distributor Sales by State, 2005.
9 Gerry Beatty, " Air on the Side of Caution," Home Furnishing News, October 18, 2004.
10 29th Annual Portrait of the U.S. Appliance Industry, Appliance Magazine, September 2006.
"Ibid.

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                                      ENERGY STAR CRITERIA
                                      To earn the  ENERGY STAR, room air conditioners must be at least 10% more efficient
                                      than the minimum federal government standards.
                                      Various types of room air conditioners are eligible for the ENERGY STAR label.
                                      These include:
                                                ENERGY STAR QUALIFIED ROOM AIR CONDITIONERS
                                       SINGLE CYCLE
                                       (cooling only)
                                       REVERSE CYCLE
                                       (heat pump)
                                       CASEMENT MODELS
                                                                 Window Units — with louvered sides
Through-the-Wall Units — without louvered sides
                                                                 Window Units — with louvered sides
Through-the-Wall Units — without louvered sides
Casement — slider models
                                      DOE is currently analyzing the potential energy savings of expanding the ENERGY
                                      STAR qualified room air conditioner category to include packaged terminal
                                      equipment (PTACs/PTHPs).

                                      COST EFFECTIVENESS
                                       •   Average product life expectancy = 10 years12
                                       •   Approximate price range for ENERGY STAR qualified room
                                           air conditioners = $130 - $85013
                                       •   Approximate price range for non-qualified room air
                                           conditioners = $80-$1,00014
                                       •   Typical ENERGY STAR price premium = $30-$50
                                       •   Time to recover price premium = 4-7 years
                                                                ANNUAL SAVINGS1
                                                             ENERGY STAR
                                                                  vs.
                                                            NONQUALIFIED
                          ENERGY STAR
                              vs.
                          10-YEAR OLD
ENERGY NEWNON- ANNUAL ENERGY 10-YEAR ANNUAL
STAR QUALIFIED SAVINGS STAR OLD SAVINGS
ENERGY USE
(kWh/yr)
ENERGY BILL
(S/yr)16
706
$72
781
$80
75
$8
706
$72
950
$97
244
$25
12 29th Annual Portrait of the U.S. Appliance Industry, Appliance Magazine, September 2006.
13 Based on data from national retailer Web sites, 2006.
"Ibid.
15 Based on national average energy usage. Regional numbers vary widely.
16 Energy costs based on national average electric rate of 10.190 from Energy Information Administration (DOE), 2006.

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