Most people never give a thought to how old their refrigerator is. Yet these old clunkers sit in the kitchen running almost constantly—jacking up utility bills and often not keeping food very cold. And if a home runs other older, energy-demanding appliances, such as washers, dryers, and dishwashers, the cost to operate them may send some families to the poor house.
Appliances account for about 17 percent of household energy consumption, with refrigerators, clothes washers, and clothes dryers at the top of the consumption list, according to the U.S. Department of Energy (DOE).
To encourage consumers to upgrade from energy-hogging appliances to ones that are energy efficient, the DOE instituted the Cash for Appliances program. Cash for Appliances is backed by more than $300 million in federal funding from the American Recovery and Reinvestment Act, and each state will mange its own program.
States Run Rebate Program
Each state will administer its own Cash for Appliances program. They will be free to select which residential Energy Star® qualified appliances to include in their programs and the individual rebate amount offered for each appliance. The DOE expects rebates to range from $50 to $200 per appliance.
Which Appliances Can People Buy?
When consumers go shopping for appliances, they should think of two price tags, says the DOE. The first one covers the purchase price—think of it as a down payment. The second price tag is the cost of operating the appliance during its lifetime. Consumers will pay on that second price tag every month with a utility bill for the next 10 to 20 years, depending on the appliance. Refrigerators last an average of 14 years; clothes washers about 11 years; dishwashers about 10 years; and room air conditioners last 9 years.
With that in mind, the DOE recommends that states and territories focus their program efforts on heating and cooling equipment, appliances, and water heaters as these products offer the greatest energy savings potential. Energy Star® qualified appliance categories eligible for rebates include: central air conditioners, heat pumps (air source and geothermal), boilers, furnaces (oil and gas), room air conditioners, clothes washers, dishwashers, freezers, refrigerators, and water heater.
How Do Consumers Qualify for Appliance Rebates?
For the most part, consumers will need to buy a qualifying Energy Star® appliance to get a rebate. But, in some states, not all Energy Star® appliances may qualify. And, in other states, consumers may need to meet other criteria. Some states may expect the program to push appliances that go beyond the minimal Energy Star® rating standards.
California, for instance, plans to go beyond the requirement that rebate-eligible appliances be Energy Star® qualified and wants to mandate that appliances and heating and cooling equipment meet the Consortium of Energy Efficiency's "super-efficient" performance criteria.
In other instances, Alaska will limit rebates to state residents with disabilities, while Oregon is targeting its money to help low-income households buy new, more-efficient heating systems. Consumers will need to check with their state agencies and the stores from which they intend to purchase the new appliance.
The nice thing is that consumers won’t need an old appliance to trade in. And they won’t have to haul their bulky old appliances to the dealer in exchange for a new one. They should, however, ensure that they properly dispose of old appliances. Remember, some retailers offer to haul away old appliances even if they don't require a trade in.
Cash for Appliances is an up and coming program that offers consumers a way to save energy and money.
Where to Find Information about Cash for Appliances
The rebate amount, resident eligibility, and the list of qualifying appliances differ from state to state. For a complete list of state programs, go to this interactive map Additional information can be found at: http://www1.eere.energy.gov/consumer/tips/appliances.html
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