Cash for Appliances or “Cash for Refrigerators” (as some pundits have dubbed the new government economic stimulus program) is an opportunity for consumers to buy or upgrade to more energy efficient home appliances by offering $50 to $200 rebates on qualifying home appliance purchases starting in December 2009.
What Appliances Can Be Purchased Under the Cash for Appliances Stimulus Package?
While Cash for Clunkers (the Obama car rebate program) was national in scope, Cash for Appliances is federally funded but administered state by state. This means that qualifying appliances can vary from one state to the next and also that the amount of the rebate on a specific appliance can differ depending on the state.
In addition, individual states may include home appliances not on the recommended U.S. Department of Energy list on a case-by-case basis. An appliance may qualify in one state but not the next. In other words, consumers should check state programs to ensure the most bang for the buck under Cash for Appliances.
Qualifying home appliances must carry the Energy Star rating. These appliances are typically marked with a sticker noting the energy rating (especially as stores compete for consumers looking for Cash for Appliances deals), but the Energy Star rating may be listed in the packaging or Energy Guide label on the appliance. Some Energy Star appliances qualify and some do not, but all rebate purchases must fall in the Energy Star rating category. Store employees should be able identify qualifying models if consumers are uncertain.
Most Energy Star appliances which carry rebates under Cash for Appliances are the power guzzlers including the following home appliances:
- Home Heating Systems
- Home Cooling Systems
- Water Heaters
- Washing Machines
- Refrigerators
- Freezers
- Dishwashers
No Trade In for Cash for Appliances? No Problem.
Unlike the Cash for Clunkers economic stimulus package, Cash for Appliances does not require a trade in. A consumer who does not own a dishwasher can walk in and get the stimulus rebate if the selected dishwasher qualifies for the Obama Cash for Appliances program in the state where the appliance is being purchased.
States are required to have recycling plans to take part in Cash for Appliances, so the details may, again, vary by the state. Most appliance stores do, however, pick up old appliances and take care of disposal when new appliances are purchased.
For appliance owners who wish to keep a back up appliance or those wanting to sell older appliances, that loophole does seem to be written into the Cash for Appliances plan as things stand now. This has been a complaint by some critics, although some environmentalists question destroying working appliances. On the flip side, consumers who are financially strapped may benefit by being able to find excellent deals on secondhand appliances as higher earning members of society update and upgrade.
Spend to Save with Energy Star Rated Home Appliances
Although Energy Star rated appliances tend to be priced higher than budget models, the rebates under Cash for Appliances along with some state rebates in specific areas and sales for the holidays, make buying energy efficient appliances even more appealing and less budget busting. In looking at the long term, investing in Energy Star rated appliances garners savings year after year.
According to Energy Star (government sponsored), the typical home spends $2,200 each year on energy. Shifting to Energy Star rated appliances saves, on average, $75 in energy costs. Energy Star appliances usually range from 10 to 30% savings on energy and bills.
One home owner reported that replacing her 1950s toilet with a new energy efficient water saver Kohler model toilet resulted in a savings of $60 per month on her water bill. “I can’t believe I waited so long to replace that toilet,” she says. “It paid for itself in no time.”
While toilets are not on the national list, some states may expand the list of qualifying home appliances under Cash for Appliances, and other industries (like plumbing) hope that President Obama will offer additional incentive programs benefiting other economically depressed industries and promoting energy efficiency.
Now is the Time to Update and Upgrade Home Appliances with Government Rebates
Buying Energy Star appliances means that by paying a little more (but reduced with the Cash for Appliances incentive), families can buy or upgrade to nicer appliances that save money in the long run with the more efficient models that safe money year after year.
Cash for Appliances rewards making greener selections for home appliances and hopefully will help as far as jumpstarting the economy. While Cash for Clunkers excluded many consumers, Cash for Appliances can work for most families. After all, everyone needs heating and cooling, and most families buy various home appliances like refrigerators and water heaters.
It is important to plan ahead and get on board early if planning to take advantage of Cash for Appliances. The Cash for Clunkers money ran dry in one week before the government invested more in the program. Cash for Appliance dollars may go fast too.
Learn more about Cash for Appliances, and make informed decisions early to take full advantage of the Obama appliance rebate program.
See Also:
Cyndi Allison - Southern born and fed, Cyndi Allison is a college lecturer and newspaper advisor as well as being a freelance writer. She writes on ...
Join the Conversation