July 28, 2014

Getting Your Government Funded Appliance Rebate

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.

Manufacturer Rebate vs Government Rebate

We’ve been getting questions regarding when the Government’s promised 300 million dollar appliance rebate will become available. The problem is, unlike the cars Cash for Clunkers program, this appliance stimulus plan is designed and administered by the individual states.

Under a population-based funding formula, Ohio was allocated $11 million, Kentucky $4 million and Indiana $6 million for the rebates.

Today is the deadline for the states to submit their rebate plans. The federal government has until the end of November to approve them.

But most states aren’t expected to launch their rebate programs until early next year.

Jim Recker of Recker & Boerger Inc. appliance stores in Ohio and other appliance retailers say there are plenty of manufacturers rebates already available and some retailers are piggy-backing with their own rebates.

“People will wait for (the government program), but if they bought now, they could take advantage of rebates already in place and save on less energy used by the new appliances in the meantime,” said Recker,(Cincinnati.com) whose firm has stores in Springdale, Montgomery and Anderson Township.

Some examples: Frigidaire has extended a $100 cash back offer on Energy Star-qualified dishwashers through the end of October. Electrolux is offering $100 pre-paid Visa card on Energy Star-rated refrigerators purchased through November.

Another wrinkle in the appliance rebate program is that the federal guidelines encourage the states to team-up with recyclers to remove old appliances from the market, although it isn’t mandated (as it was in the Cash for Clunkers program).

Cash For Clunkers – Appliance Clunkers

Here’s some good news if you’ve got an old household appliance you’ve been wanting to replace. The government’s $300 million dollar incentive plan will help you pay for it. The plan is meant to help the appliance industry by giving a boost to slow appliance sales nationwide, but the relatively small amount of cash will not make a big impact on major appliance appliance dealers such as Whirlpool, GE, and Electrolux. There are also some potentially confusing details to be worked out:

The Wall Street Journal says unlike the clunkers plan, the program allows each state to pick qualifying models and tailor rebate amounts. Ohio might decide one washing machine qualifies for a $100 rebate, while California picks another for $125.

Manufacturers and retailers said they are reluctant to ramp up production or order new stocks until it is clear what models qualify. The Department of Energy, which designed the program, wants states to focus on just 10 categories of appliances carrying the federal Energy Star seal of approval for efficiency.

But other details are still uncertain. States could ask to include up to 46 other types of products, ranging from light bulbs to computers. While rebates are expected to range between $50 and $200, qualifying models and precise rebate amounts won’t be provided until late this year or early next.

Some of the nation’s biggest appliance makers are lobbying to make the plan rules uniform nationwide. They said the unknowns and the varying rules by state will make the program harder to explain to shoppers, in turn making it tougher to win sales.

The program “will provide consumers a unique opportunity to save money on energy-efficient appliances,” said Dave McCalpin, chief marketing officer for GE Appliances. He said Fairfield, Conn.-based GE is working with state governments to adopt rebate programs that rely on Energy Star ratings.

Some states are considering standards that exceed Energy Star requirements, a move GE opposes. “We believe it is very important that rebate programs are consistent across the country,” Mr. McCalpin said.

The stricter proposals underscore criticisms that the Energy Star program is not tough enough in raising energy efficiency. The Environmental Protection Agency is looking at revising the program’s standards. If it does so after the states set their rules, the rebates could end up subsidizing some appliances that are not as energy efficient as they could be.