Cash for greener appliances follows clunkers program
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If you missed your chance to get cash for your clunker, you may soon have another shot at getting government money for going green. Just step out of the garage and into the kitchen.
This year's stimulus bill funded a $300 million program that will offer rebates of varying amounts -- possibly up to $200 -- to buyers of energy-efficient appliances and other products with the "Energy Star" label.
The rebate programs are being run by the states, and the details are still being worked out. But unlike Cash for Clunkers, you probably won't have to drag your old stove into the store to get money for a new one.
In the next week, states will start to receive 10 percent of their allotments, which Department of Energy spokeswoman Jen Stutsman said would be used to help develop the programs.
Plans for the programs -- including which products qualify and how much the rebates will be worth -- are due back to the federal government by Oct. 15.
The Department of Energy estimates that the full $300 million will be awarded by the end of November, and says consumers should start to see the rebate programs in stores later this year or early next year.
"It will really just depend on how complex the state's program is and the infrastructure they have to put in place," Ms. Stutsman said.
The appliance industry's trade group, the Association of Home Appliance Manufacturers, said consumers should expect to see rebates of between $50 and $200, since that's what states with existing rebate programs typically give.
An energy rebate program was included in the Energy Policy Act of 2005, but it was never funded until this year's stimulus bill. From the Department of Energy's perspective, this is a new federal program. But the trade group estimates that 25 states already have their own rebate programs, which either states or utilities pay for.
The rebates might spur new appliance sales, which would help an industry that's been struggling -- sales of such big-ticket items as major appliances have slumped in the recession. So far this year, shipments of new appliances to retailers are down 15 percent, according to the trade group. That's on top of a 10 percent drop last year.
The Department of Energy said it hoped the program would ripple throughout the economy by saving families money on their energy bills and by creating jobs and helping businesses because it will create new sales.
As for the environment, replacing old appliances with new, efficient ones means less energy is required to operate them.
First Published August 26, 2009 12:00 am
