An overview of options and potential barriers and risks for reducing the energy consumption, peak demand, and emissions for seven key energy consuming residential products (refrigerator-freezers, dishwashers, clothes washers, clothes dryers, electric ovens, gas ovens and microwave ovens) is presented. The paper primarily concentrates on the potential energy savings from the use of advanced technologies in appliances for the U.S. market. The significance and usefulness of each technology was evaluated in order to prioritize the R&D needs to improve energy efficiency of appliances in view of energy savings, cost, and complexity. The paper provides a snapshot of the future R&D needs for each of the technologies along with the associated barriers. Although significant energy savings may be achieved, one of the major barriers in most cases is high first cost. One way of addressing this issue and promoting the introduction of new technologies is to “level” the playing field for all manufacturers by establishing Minimum Energy Performance Standards (MEPS) which are not cost prohibitive and promoting energy efficient products through incentives to both manufacturers and consumers.