What the Potential Energy Star Restructuring Could Mean for Your Business

The ENERGY STAR program, launched in 1992 by the U.S. Environmental Protection Agency (EPA) to identify and promote energy-efficient products, buildings and industrial practices, has become one of the most widely recognized voluntary efficiency programs in the U.S.

But now Energy Star faces potential major changes. Recent reports have emerged that the EPA is planning to eliminate or privatize the Energy Star program due to budget cuts proposed by President Trump’s administration. In May 2025, the EPA announced massive job cuts and restructuring but did not mention Energy Star. Many believe that this program is the next to go.

What is Energy Star?

Energy Star is a nationwide program that identifies energy-efficient products, homes and commercial buildings. You’ve probably seen a little blue sticker with a star on a household appliance before–this indicates an Energy Star compliant product. The program also educates consumers on making energy efficient choices, customers can receive rebates and tax credits on energy efficient home improvements. Since 1992, it is estimated that Energy Star has saved consumers more than $500 billion and reduced electricity use by 5 trillion kilowatt-hours.

What Does This Mean for Commercial Real Estate?

Energy Star pilots a software platform called Energy Star Portfolio Manager that helps buildings track their energy usage. The tool links utilities with landlords and extends to dozens of state and municipal governments, which depend on it to enforce energy and climate policies that often include tax incentives and financial subsidies for efficiency gains. 

Portfolio Manager also helps landlords maintain compliance with state and municipal regulations which helps them determine if certain buildings need upgrades such as new HVAC or lighting. In the last year, more than 300,000 buildings, which makes up about 25% of all commercial building floorspace in the U.S., used the Portfolio Manager tool.

The Future of Energy Star

There are a few different proposals of what will happen to the program if it gets cut by President Trump’s administration. 

1. Privatization: If Energy Star is privatized or turned into a non-profit it would no longer receive funding from the government. One solution points to businesses being charged to receive Energy Star resources and incentives in order to keep the program going, similar to a subscription model.
2. Reduced funding: If Energy Star were to see budget cuts, it would limit the ability of the program to keep up with developing technology and limit expanding resources into new sectors. 
3. Transfer to Department of Energy (DOE): Another proposal to save the Energy Star program is to transfer the program to DOE since it already shares some responsibilities.

There are other energy certifications that businesses can obtain in the absence of Energy Star such as Leadership in Energy and Environmental Design (LEED), Global Real Estate Sustainability Benchmark (GRESB) or ISO 14001. Each of these certifications serves different strategic purposes of promoting sustainability in buildings.

Bottom Line

While Energy Star’s future is uncertain, the demand for reliable energy tracking and efficiency strategies isn’t. Businesses that stay proactive by exploring alternative certifications and partnering with energy experts will be best positioned to adapt and stay energy efficient.