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A heat-pump water heater is another efficient way to produce hot water. Heat-pump water heaters work like refrigerators, only in reverse; they can operate at less than half the cost of a standard electric water heater. On the downside, a heat-pump water heater doesn't function well below 40 degrees, costs more for initial installation and requires more maintenance than a typical electric water heater.

REFREGIRATORS AND FREEZERS

After water heaters and air conditioners, refrigerators and freezers are the next biggest household power-gluttons. But manufacturers continue to make improvements, and have designed better compressors, condensers, evaporators and fan motors to cool more efficiently. Injected foam, which completely fills every square inch of refrigerator walls and doors, has replaced sheet insulation. What's more, models manufactured since July 2001 are 30 percent more efficient than their 1990s predecessors thanks to stringent new federal standards.

"The refrigerator has been the poster child for the improvements that have been made in residential appliance energy efficiency," says Jennifer Thorne, a research associate with the American Council for an Energy-Efficient Economy. "Many refrigerators today use only 25 percent of the electricity of similar products that were sold in the early 1970s, so in 30 years we've made tremendous gains."

In fact, it's possible to save $50 or more annually on your electric bill by purchasing a new energy-efficient model. Take time to carefully consider what type of refrigerator/freezer you need and then compare the many models that are available.

Although federal law requires minimum energy efficiency levels for refrigerators, significant differences can exist between similar models.

Refer to the EnergyGuide label and also look for the Energy Star to select the most efficient model. And keep these general guidelines in mind when you're shopping for a new refrigerator:

• Larger models use more energy than smaller models and require more raw materials to manufacture.

• Side-by-side refrigerator/freezers are less energy efficient than similarly sized models with the freezer on the top or bottom.

• Models with manual defrost use less electricity (50 percent less in some cases) than automatic defrost models but must be defrosted regularly to maintain their efficiency. Unfortunately, manual defrost models can be hard to find in larger sizes.

• Through-the-door dispensers and automatic ice makers cost more, increase energy consumption and tend to need more frequent repairs.

To keep your new refrigerator running efficiently, keep it out of direct sunlight and away from heat-producing appliances. And don't squeeze it into a tightly confined space surrounded by built-in cabinets. Your refrigerator's compressor needs room to breathe properly. Although the actual ventilation space needed varies from model to model, a good rule of thumb is to double whatever the manufacturer recommends.

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