Cash for Clunkers program switches focus to appliances
By Jennifer Kneuss
of The Bargain Hunter
October 18, 2009
1040
Now that the automotive industry-boosting Cash for Clunkers program has ended, the government is turning its attention to encouraging consumers to trade in energy guzzling appliances for those that will reduce energy consumption. They have set aside $300 million to get customers to switch out their old junk for Energy Star-rated appliances. Appliance sales have been down significantly in the past year and a half, and it is hoped the new program will also boost sales for those businesses.
One difference from the automobile trade-in program is that your used appliances dont have to be traded in. You might just use that old refrigerator to store cold beverages in the garage. This, of course, may not be the optimal thing to do to conserve energy. But you do have to buy a new appliance with the Energy Star rating that meets the Environmental Protection Agency (EPA) and the Energy Departments highest rating standards. When you do, Uncle Sam will reward you with from $50 to $200 in rebates. It is hoped that the combination of jump-starting large appliance sales and shaving energy bills will provide a boost to the economy as well as the environment. For instance, a new Energy Star-rated washing machine might save you up to $150 a year, a significant amount that can then be spent elsewhere. Older appliances can use three times the amount of energy of newer, energy saving designed models. About 55 percent of the products made by the appliance manufacturers trade group now carry the Energy Star label.
These rebates will help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy and create jobs, said Energy Secretary Steven Chu, when he announced the program in July.
The state of Ohio has received $11 million for this program. In addition to the cash for appliances rebate, some utility companies will also offer to pick up and recycle old appliances, and even throw in a small rebate incentive to boot. Other energy companies may offer rebates for existing homes or to new homebuilders who install higher energy efficient heat pumps, furnaces, and air conditioning units.
It is hoped the new Energy Star appliance rebate program will be as successful as the automobile Cash for Clunkers program that inspired the sale of more than 690,000 new cars across the nation. The new program is expected to begin in late fall to early winter.
