January 7th, 2010
Cash for Appliances: Latest Federal Rebate Program Launches
A federal rebate program for energy-efficient appliances, dubbed Cash for Appliances, launched this week in some states and will soon be available nationwide. This spin-off of 2009’s economic stimulus programs First-Time Homebuyer’s Tax Credit and Cash for Clunkers hopes to be as popular and successful in 2010 as its predecessors. The federal appliance rebate program offers an average of $25-$250 in rebates for customers buying dishwashers, refrigerators, and other household appliances that have the “Energy Star” label for energy-efficient machines.
Compared to Cash for Clunker’s near $3 billion allocation, the federal appliance rebates offers $300 million in rebates to be divided among states based on population. Each state is running its own rebate program, so rebates will vary by state and eligibility. For example, rural Alaskans with disability status are eligible for a $500 rebate, while city dwellers with disability are limited to $300. Some states like Iowa and New Hampshire require consumers to know their home’s AFUE, Annual Fuel Utilization Efficiency rating, to calculate the rebate amount. Some states require proof that consumers recycled their old appliances.
The impact of this program won’t be as significant as Cash for Clunkers or Homebuyer’s Tax Credit, but this smaller-scale federal incentive will help boost profits for manufacturers, whose sales have fallen nearly 21 percent since 2008. Additionally, this should help create jobs in the market, keep more money in consumers’ wallets, as well as promote eco-friendly consumerism.
Cash for Appliances is a smart deal for consumers looking to replace broken or out-dated appliances, and can add on existing rebates offered by states or utilities plus cut-down on utility bills to maximize savings. In the case of a 10-year-old washing machine, replacing it with an Energy Star labeled unit can save 5,000 gallons of water a year which translates into $145 savings in utility costs, reports Yahoo! News. Replacing a 20-year-old refrigerator would save a consumer $250 a year, and could pay for itself in over five years. But if your appliance is only a few years old and is in good working condition, don’t be so quick to splurge on a new model just because rebates are available. Make sure you will save enough in water and energy bills, and have the funds available, to justify a large purchase.
The program will last until federal funds are exhausted, which experts predict may take 6 months to a year. But since such limited rebates are available, consumers are encouraged to take advantage now. For state by state eligibility information, visit http://energysavers.gov.
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This is a great program! This is the first step in a nationwide initiative to improve our green standards. I also really recommend this article on the energy star program.
http://www.gobankingrates.com/tax/making-the-most-of-energy-rebates/
Hope you like it!