appliance cash for clunkers

The good news is that the US Government’s appliance rebate program has finally begun. The bad news is that you have a bit of footwork to do before you get it.

Under the federal program, the rebates can go to buyers of new central air conditioners, room air conditioners, heat pumps, boilers, furnaces, washers, dishwashers, freezers, refrigerators, and water heaters with the Energy Star seal. Also, it doesn’t matter how old your clunker appliance is, it needn’t be in working order and, in some states, such as Arizona and Florida, you won’t even need to trade it in.

The tricky part is that each state will run its program differently, deciding which of the possible products it will include in the program, when to start and stop offering rebates, the size of the rebates, and which residents will qualify. In Minnesota, for instance, only washers, dishwashers, freezers and refrigerators are covered. The refrigerator rebate is worth up to $100 in Nebraska, but no more than $50 in Georgia. The Alaskan program is limited to residents receiving disability payments from the state or federal government. In Kansas and Oregon, rebates are restricted to low-income people. States have until February 2012 to allocate their rebate money, but the programs will likely expire long before then. Some will last only a week.

Eight states (Connecticut, Delaware, Illinois, Kansas, New Jersey, Oregon, Vermont and Wisconsin) have launched their appliance programs, at least for some products, to capitalize on President’s Weekend appliance sales. The rest are likely to rev up by May, many around Earth Day in April. You can find the rules for your state’s program at Energy Star Web site.

More details to be aware of courtesy of CBSNews.com:

Energy Star appliances can cost $50 to $100 more, on average, than ones that don’t. But the appliance should pay for itself over five or six years through savings on your utility bill. In some cases, your savings come faster. Replacing a washer made before 2000 with a new Energy Star model, for example, can save up to $135 a year, according to the Department of Energy.

• Only 55 percent of new major appliances have the Energy Star label. So you might not be able to get the rebate on the product you want to buy.

• You might not actually get cash. Although some states will issue rebate checks, many will instead give out prepaid cards issued by Visa or MasterCard.

• Unlike “Cash for Clunkers,” where dealers handled all the paperwork, in most states you have to deal with the forms to get your rebate. That means mailing in your receipt, along with proof of residency, a rebate form from the retailer or your state energy department web site, and usually proof that your clunker appliance was picked up.

• It’ll take roughly four to six weeks to get the rebate.

Before you shop:

1. Drill down into the details of your state’s plan. Some states have rigorous requirements about which products qualify, beyond the Energy Star stamp. Others are rolling out their programs in two phases.
Minnesota and Texas let consumers reserve rebates online or by calling a toll-free number about two weeks before they buy. Check online to see if your state has rebate funds left. Some state sites provide an up-to-date tally of the amount left in the kitty.

2. Make sure the retailer you plan to visit is participating. Some small dealers are sitting out because they’ve decided the program is too costly. In Georgia, online purchases won’t qualify.

3. Learn the precise rebate amount for the appliance you’ll buy. You may encounter unexpected twists. In New York’s “Great Appliance Swap-Out,” consumers get rebates for buying eligible appliances individually or in a bundle of three, where the rebate may be larger.

4. See if you’ll get a recycling bonus. Some states boost the rebate by $25 to $75 if you recycle your old appliance.

5. Ask about additional deals. There’s a good chance your new appliance is also eligible for a manufacturer’s rebate or store promotion, too. You may also be able to combine a state rebate with the federal one. Call your local utility to see if it is dangling rebates, too. Often, utilities offer $50 off new energy-conserving appliances. The Database of State Incentives for Renewables & Efficiency is a good place to do your research.

6. Apply for the rebate as soon as you can. Some retailers have in-store computer kiosks where customers can apply for rebates on the spot. In Georgia and New York, as soon as you’ve bought a qualifying appliance, you can reserve a rebate either online or by calling a toll-free number. Since states will halt their programs when their money runs out, you won’t want to conserve your energy when it comes to applying for rebates.

According to TWICE, the U.S. Department of Energy (DOE) has approved plans and awarded funding to 50 states and territories for rebates on Energy Star-qualified appliances under its State Energy Efficient Appliance Rebate Program (SEEARP).

The appliance equivalent of “cash for clunkers” has been allocated $300 million in stimulus funds, which will provide consumers with rebates of between $50 and $200 on energy-efficient refrigerators, dishwashers, clothes washers, air conditioners and water heaters.

The stimulus effort is expected to boost white-goods sales by as much as 20 percent, industry executives have said.

Unlike the auto industry program, trade-ins are not federally mandated under the “Cash for Appliances” effort, although the DOE is encouraging states to incorporate recycling into their programs in an effort to rid the energy grid of old “clunker” appliances.

But the biggest — and most problematic — difference is the state-level implementation, which has resulted in a nationwide patchwork of rules, stipulations and start dates, and an administrative challenge for manufacturers and national and multiregional chains.

For example, several states are limiting their programs to low-income or rural applicants, while others are restricting their rebates to heating and cooling appliances. And many states, such as California and Ohio, require recycling of “clunker” appliances, and others like Florida and Illinois will provide an additional rebate for consumers who dispose of their old appliances in a responsible manner.

To help consumers navigate the maze of varying requirements, dealers are bringing sales associates up to speed on their respective state’s plans, and both retailers and vendors have created dedicated Web sites, such as Sears.com/energystar, that provide program details, tracking tools and links to DOE’s informational site, www.energysavers.gov/rebates.

Specifically, Sears’ sales associates and Web site will:

send email notifications to registered customers when state programs go “live”;
offer details on the individual state rebate programs, including when and how much will be available, and any guidelines that may apply; and
assist consumers with the responsible removal and disposal of their old appliances, as needed.

Similarly, Bosch, the premium majap manufacturer, has created a Bosch Rebate Resource Center site at www.boschappliancerebates.com.

The Energy Department is expected to approve SEEARP plans submitted by all 56 U.S. states and territories, with the first major marketing campaign likely to launch by Presidents Day weekend.

Consumers will be able to receive existent Energy Star rebates in addition to the Cash for Appliance subsidies.

States receiving the most majap stimulus funding include California ($35.3 million), New York ($18.7 million) and Florida ($17.6 million).

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appliance cash for clunkers

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