On this page
A refrigerator can use less electricity without paying back its purchase price quickly. The right comparison starts with the old fridge’s consumption, the replacement’s energy label and the installed purchase cost. Age, a sales discount and a larger efficiency badge cannot replace those inputs.
This example uses LG’s published price and annual energy specification for a twenty-cubic-foot top-freezer model. It illustrates an energy-only replacement calculation, rather than recommending that model for every kitchen. Capacity, reliability, repair cost and the space available can change the purchase decision even when the energy payback is long.
Key figures
- $899 LG LTCS20020S refrigerator, equipment only
- 387 kilowatt-hours LG LTCS20020S rated yearly electricity use
- $102.60 Example: yearly saving at $0.20 per kWh
The model and finish identify the price
LG’s US product page for the stainless-steel LTCS20020S lists a current price of $899, compared with a displayed regular price of $1,088. Its specification gives annual electricity consumption of 387 kilowatt-hours. These figures were checked directly on the manufacturer’s page in October 2026.
A search result can retain an older sale price, and another finish can have a different price. Use the selected model and finish shown in the cart. Delivery, removal, installation accessories and tax may also change what is paid before the fridge begins saving energy.
| Input for the worked comparison | Figure | Evidence or status |
|---|---|---|
| Replacement refrigerator | LG LTCS20020S | Manufacturer’s stainless-steel model |
| Published purchase price | $899 | LG’s live US product page |
| Rated annual electricity | 387 kWh | LG’s product specification |
| Example electricity tariff | $0.20 per kWh | Assumption for the calculation |
| Example old-fridge electricity | 900 kWh per year | Hypothetical baseline, to replace with measured use |
| Annual electricity reduction | 513 kWh | 900 minus 387 |
Source note: LG publishes the price and replacement energy rating. The old-fridge use and tariff are stated assumptions; the savings and payback are calculations, not a manufacturer promise.
Compare the new fridge’s size with the old one before interpreting the energy difference. Moving from a small basic appliance to a much larger refrigerator adds storage and features, so the purchase is not solely an efficiency improvement. ENERGY STAR’s refrigerator guidance supports comparing models and retiring an inefficient spare rather than assuming every replacement has the same saving.
Measured old-fridge use is the strongest baseline
An old EnergyGuide label gives a standardized estimate from when the model was tested. It may help identify an order of magnitude, but it does not measure the fridge’s present condition, kitchen temperature or door-opening pattern. If the label is missing, search the manufacturer’s model information before assigning a number based only on age.
A compatible plug-in meter can measure consumption over a representative period. For example, a hypothetical reading of twenty kilowatt-hours over seven days extrapolates to about 1,043 kilowatt-hours a year: twenty divided by seven, multiplied by 365. That extrapolation assumes the sampled days represent the year.
A fridge cycling through defrost, changing room temperatures or different use can make a short test misleading. Record the measured dates and conditions, and extend the observation when the reading is unusual. Do not confuse a meter’s instantaneous watt reading with annual kilowatt-hours.
The appliance running-cost guide explains that power and energy are different units. The household energy-monitor guide covers larger monitoring systems; a whole-home display may not isolate the refrigerator precisely enough for this replacement decision.
Energy savings depend on the difference in kilowatt-hours
The annual electricity saving is old-fridge use minus new-fridge use, multiplied by the avoided price per kilowatt-hour. With the table’s assumptions, 900 minus 387 equals 513 kilowatt-hours. At twenty cents each, the annual saving is $102.60.
If the old fridge instead uses five hundred kilowatt-hours, the reduction is only 113 kilowatt-hours, worth $22.60 a year at the same tariff. An $899 purchase then has an energy-only simple payback of about 39.8 years. That does not mean the fridge will last that long; it shows that energy savings alone are a weak reason for this replacement.
If the old fridge uses 1,200 kilowatt-hours, the reduction becomes 813 kilowatt-hours, worth $162.60 a year. The same purchase has a simple payback of about 5.5 years. Those baseline examples are assumptions, not claims that refrigerators of particular ages consume those amounts.
The electricity rate changes the result
For the 513-kilowatt-hour reduction, a tariff of fifteen cents produces $76.95 in annual savings. At thirty cents, the same energy reduction is worth $153.90. The corresponding $899 simple paybacks are about 11.7 and 5.8 years. These tariffs are comparison assumptions, rather than quotes from a utility.
Use the charges that fall when consumption falls. A monthly connection fee often remains even after an appliance becomes more efficient. Dividing the entire bill, including fixed fees, by usage can overstate the marginal saving from reducing refrigerator energy.
Time-dependent rates require more care because a refrigerator operates throughout the day. Do not price all avoided consumption at the most expensive evening rate unless there is evidence that all of it would occur then. The time-of-use comparison explains why the distribution of consumption matters.
The FTC’s EnergyGuide explanation describes annual use and estimated operating cost as comparison information. The label’s assumed rate and test conditions do not guarantee a household’s bill. Reading the kilowatt-hour figure allows the example to be recalculated with the local tariff instead.
Repairs and keeping a spare change the decision
If delivery and removal add a hypothetical $100, the replacement cost becomes $999. Against $102.60 in annual energy savings, simple payback rises from about 8.8 to about 9.7 years. Add only costs that apply to the purchase and identify each one rather than treating a headline sale price as the installed total.
A hypothetical $250 repair introduces a different comparison. Replacing for $899 instead of repairing for $250 spends an extra $649. If both options are expected to provide the same service and the replacement saves $102.60 annually, the additional-cost payback is about 6.3 years. Reliability, warranty and the likelihood of further repair remain separate judgments.
Keeping the old fridge running as a spare defeats this avoided-consumption calculation. A hypothetical old unit using 900 kilowatt-hours plus the new rated 387 totals 1,287 kilowatt-hours annually. Buying the new fridge adds consumption instead of removing the old baseline. Occasional use should be budgeted by measured use, not assumed free because the spare sits in a garage.
Do not keep using a malfunctioning refrigerator solely to extend an energy-payback calculation. Have uncertain cooling performance or an electrical fault assessed by an appliance professional. A safe repair or replacement decision includes reliable food storage as well as electricity cost.
Before ordering, confirm dimensions, door-opening space, model, finish, delivery charges and removal arrangements. Save the rated annual energy figure and the assumptions used in the calculation. That makes it possible to distinguish an efficiency purchase from a purchase driven by storage, convenience or a failed appliance.
Questions people ask
What annual use does the cited LG model list?
LG lists 387 kWh per year for the LTCS20020S. At an assumed $0.20 per kWh, that corresponds to $77.40 annually; the local rate and conditions change the bill.
How quickly does the $899 replacement recover its price?
With the hypothetical 900-kWh old fridge and $0.20 tariff, the annual saving is $102.60 and simple payback is about 8.8 years before delivery, taxes and financing.
Does the EnergyGuide dollar figure predict my bill?
No. It uses comparison assumptions. Use the annual kilowatt-hour estimate with the local avoided electricity rate, and recognize that use and room conditions affect consumption.
Can keeping the old fridge as a spare save money?
Not through this replacement-energy calculation. If it stays plugged in, its consumption remains and the new fridge adds another load. Include both appliances in the budget.
Where these figures come from
- LTCS20020S: Current US Price and Annual Energy Specification LG Electronics · lg.com
- Refrigerators: Shopping and Energy-Saving Guidance ENERGY STAR · energystar.gov
- Shopping for Home Appliances? Use the EnergyGuide Label Federal Trade Commission · consumer.ftc.gov
Figures last checked October 2026.
