September 8th, 2009
‘Cash for Appliances’ Coming Soon
Following on the heels of the wildly successful Cash for Clunkers program, the Cash for Appliances program is extending Uncle Sam’s helpful hand from the driveway into the kitchen where consumers can soon get additional or larger rebates on new, energy efficient appliances. Making rebates only eligible to Energy Star appliances, supporters are hoping consumers catch on to the trend of eco-friendly purchases with better energy requirements and less water use, all while providing the same electric jolt the auto industry got from Clunkers to the appliances industry.
Unlike the federally-run Cash for Clunkers program, the Cash for Appliances program will be left to each state to decide which appliances will be eligible for a rebate, the rebate amount, the energy efficiency requirements for the appliances, and whether or not these rebates can be combined with other rebates. Each state needs to file its formal application with the energy department by October 15, 2009 and the Energy Department expects most of the $300 million to be awarded by the end of November 2009. Each state will get a piece of the $300 million dollar pie according to each state’s population at a $1 to 1 person scale, with California consumers expecting the largest slice of Cash for Appliances funding with just over $35.3 million in possible rebates.
Through it’s up to each state to determine which appliances are eligible for rebates and at what value, some details are pretty much set in stone, including all eligible appliances must qualify for Energy Star status, and there will be no need to haul in your used appliances to trade in for the rebates. Start window-shopping now so you can figure out which freezers, heaters, refrigerators, air conditioning, or other appliances you may want to purchase with the new Cash for Appliance rebates ranging from $50 to $200 rebate.
This program may be a lifesaver as leading appliance retailers like Whirlpool and Electrolux are really feeling the pinch of the recession with the entire appliance industry suffering 15% slumps in shipments of washers, dryers, refrigerators, and ovens. The aim is that Cash for Appliances will provide them some relief and help reduce overall appliance inventory levels at major retailers like Sears, Home Depot, and Lowes. If the rebate isn’t enough, appliance manufacturers are hoping the healthy, green incentive of Energy Star will move consumers to buy new dishwashers or heaters.
Economic stimulus programs like Cash for Appliances and Cash for Clunkers, which also promote eco-friendly consumerism, will hopefully be as good for the economy as it is for Mother Nature when it’s all said and done. Any type of spending activity means movement of inventory, hope of profits, and possible creation of jobs. The added bonus of these programs is that they translate consumer spending into consumer savings power through rebates, lower energy bills, and lower water usage. Consumers’ lukewarm reception of similar appliance rebate programs in the past is making retailers a bit anxious whether the new government program will succeed in boosting sales. However, as Cash for Appliances is being talked over and shaped in Capitol Hill, hold off on those new kitchen appliance purchases for now because they might come with additional savings and rebates later this year or in early 2010.
