Following
the success of the Cash for Clunkers program, the federal government recently
announced the creation of a similar rebate program for consumers looking to
purchase new energy-efficient appliances. While many of the details of the
program are still yet to be determined, Better Business Bureau offers the
following guidance to consumers who might be interested in taking advantage of
the program.
The
federal government has set aside $300 million from the stimulus package to fund
the new cash for appliances program. The intended benefit of the program is two
fold. The first goal is to provide another way to stimulate the economy in an
industry that has seen a 15 percent drop in sales, according to the Association
of Home Appliance Manufacturers.
The
second goal is to increase energy efficiency in households by replacing old
appliances with newer “greener” ones. According to ENERGYSTAR.gov, the typical
household spends more than $2,200 a year on energy bills but could save over
one-third or about $700 per year by making the switch to ENERGY STAR products.
ENERGY
STAR standards are set by the U.S. Department of Energy (DOE) and the
Environmental Protection Agency and help consumers identify energy-efficient
products in 60 different categories including appliances, windows and doors,
heating and cooling equipment and water heaters. In 2008, about 55 percent of
new major household appliances had the ENERGY STAR seal.
“Replacing
older appliances with more energy efficient models will not only help the
environment and provide a little boost to the economy, it will also have a
positive impact on a homeowner’s bottom line when the energy bills come in month
after month,” said Frank Whitney, CEO of the MidCal BBB.
Following
are a few details on the evolving cash for appliances program.
Program implementation
will vary by state.
The implementation of the program and distribution of rebates will occur at the
state level. Every state must submit a plan that specifies which appliance
categories will be included in its own program, the amount of rebates for each appliance
and a plan for recycling old appliances.
DOE
estimates that the $300 million set aside will be awarded to states for their
programs by the end of November, and consumers should see the rebate programs
implemented in late 2009 or early 2010.
Qualifying
appliances will vary by State.
States will decide which ENERGY STAR qualified appliances are eligible
for a rebate. The DOE is encouraging states to focus on awarding rebates for
heating and cooling equipment, appliances and water heaters.
No trade-in will be
required.
Unlike the Cash For Clunkers program, wherein participants had to hand over
their old car and the clunker was sent to the scrap heap, participants in cash
for appliances don’t have to exchange an older appliance for a new one.
Stay tuned for updates. Consumers should
visit their own state energy department’s Web site for updates on program
implementation in their area. More information from the federal government is
available at http://www.energy.gov/recovery/
Take advantage of additional
programs now.
If you can’t wait to purchase a new appliance, you can still take advantage of
other programs. Both the federal
government and many state governments already provide tax credits for
purchasing energy efficient appliances. Also, more than 25 states have
recycling programs for appliances. The
Database for State Incentives for Renewables & Efficiency (www.dsireusa.org)
provides a state-by-state breakdown of local incentives and policies for renewable
energy and energy efficiency.
For
more BBB advice you can trust on how to be a savvy consumer, visit www.bbb.org