A $300 million dollar rebate program for buying energy efficient appliances such as refrigerators, dishwashers, and washing machines, similar to the highly popular Cash for Clunkers Program, is coming soon, according to an article last Friday on BusinessWeek.
Starting later this fall, the program will offer rebates of $50 to $200 on energy efficient appliances. Participating buyers will not have to turn in their old appliances, as was required in the Cash for Clunkers Program with old cars. Program details will vary by states, and states must turn in their plans by October 15th. Only appliances with the Energy Star Seal will qualify, and approximately 55% of appliances manufactured last year met that criteria.
Apparently, the appliance industry could use the boost, as sales were down 10% during 2008, and 15% through July of this year.
I was not a really big fan of Cash for Clunkers, as I felt the program had some issues. Some used cars that may not have been in very bad condition, and could have been purchased used by someone who could not afford a new car even with the rebate, were destroyed. There were other issues with it as well that didn’t seem like the best use of tax-payer dollars.
Whatever it ends up being called, whether it is Cash for Refrigerators or Cash for Appliances, I imagine that the goal is to increase the number of energy efficient appliances, and to remove older, less efficient appliances from service.
This is not necessarily a bad thing, but I am not a big fan of these rebate programs with a short deadline-it seems as if the federal government is trying to stir up a “buying frenzy” to get people spending again.
What is your opinion of the Cash for Appliances program? Is the federal government going overboard with all of the rebates they are handing out?
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{ 8 comments… read them below or add one }
I’m waiting for my “cash for plasma TVs” rebate.. I really NEED a new 55″ Plasma in my basement, and I can trade in our old 20″ tube TV from 1987.
But seriously- this is so goofy. What’s next? Enough with the handouts already!
@BMM- Cash for plasma TV ’s would be nice! Although I dread paying it back in taxes in the future……
I don’t think providing some sort of incentive allowing people to upgrade to more energy efficient appliance is a bad idea per se- but I agree- I think the handouts have gotten “out of hand”, so to speak!
I think it’s a great idea with a much lower outlay of money than was required for Cash for clunkers. It achieves dual purposes.
I do see your point- it is a lot less money, and could help conserve energy. At the same time though, all of these rebate programs are getting me worried- is the government encouraging people to spend just to jump start the economy, when maybe they shouldn’t? I don’t really know the answer.
I like this idea! My husband and I were waiting to buy our new appliances until next summer, but if we can get a good deal, we’ll do it now! The money we were going to spend any way will go into the economy and generate more demand, which in turn will generate jobs in order to fill the demand. The people who will get those jobs will spend money, generating more economy stimulus!
When republicans feel the need to give money to the wealthy and wait for it to trickle down, the economy stalls. If you want real stimulus and economic movement, give 95% of the American people back their disposable income and see how much demand is generated! NAFTA needs to be revisited, but I understand that going too far right now would endanger all of the loans with China that Bush put into place. We do need to be careful, but we need to work on our country!
I like this program!
@Shirley- I hope it does provide some stimulus, and I do think that people replacing older less efficient appliances such as air conditioners, dishwashers, etc with newer, more energy efficient models will certainly benefit their electric or utility bills. I am not sure if all of these programs are going a little to far with the government giveaways, though.
In addition to the “Cash for…” programs, I have also taken advantage of the federal tax credit on super energy-efficient doors and windows, which i’m not hearing much about with all the cash for clunkers hoopla.
I had toyed with the idea of turning my screened porch into an enclosed sun room, for various reasons, but hadn’t really planned on doing it now until i read about the tax credits. I bought 6 windows and a door with a U value of 30, which qualifies me for a 30% credit, or $600! I’m now moving forward with another formerly optional project, to replace 2 old windows in my garage. the tax credit makes it worthwhile to get another energy efficient window, even though it’s not really necessary in a garage.
for more details on the tax credits, which are also available if you purchase new furnaces or boilers, check out my story…http://www.creditfyi.com/Credit-Library/Federal-Tax-Credits-for-Energy-Efficient-Cars-And-Home-Improvements.htm
@Dawn- Sounds like you have your energy efficient upgrades planned out very well- Kudos for thinking ahead . Thanks for the link to your article!