The U.S. Department of Energy's $300 million State Energy Efficient Appliance Rebate Program, otherwise known as cash for clunkers for appliances,
is up and running in several states, and set to launch in others in
early 2010. We've been getting a lot of questions from readers who want
to take advantage of the incentives the states will dole out, so we've
compiled this FAQ to fill you in on some specifics of the program. (Note: This FAQ, originally published in October, was updated on December 17, 2009.)
Will the cash-for-clunkers-for-appliances rebates be offered nationwide?
As
of December 17, the DOE has approved plans for 48 states, the District
of Columbia, and five U.S. territories and is expected to finish the
approval process by the end of the year. Use our interactive map to get details on the rebate program in your state.
Where can I find the latest information?
We'll be providing regular updates as news and details emerge. Go to www.energysavers.gov/rebates for additional information and links to approved state plans. Manufacturers, including Bosch, and retailers, including Sears, are also spreading the word on their Web sites, the way car dealers did last summer.
How was the $300 million be divvied up?
It
was done by a formula in the Energy Policy Act of 2005 that's largely
based on state population. For example, California, with a population
of nearly 37 million, received just over $35 million, while Alaska's
686,000 residents will get $658,477.
What appliances will be covered by the rebate program?
Each
state devised its own lost of products, which could include
refrigerators, freezers, washers, dishwashers, central and room air
conditioners, air-source and geothermal heat pumps, boilers, and oil
and gas furnaces. Models will need to be Energy Star qualified, where
applicable, to qualify for a rebate. Several states have even more
stringent requirements. For example, California and Michigan will
require washers to be rated Tier 2 and Tier 3, respectively, by the Consortium for Energy Efficiency.
How long will cash for clunkers for appliances last?
In theory, the program could extend into 2012. That's how long the American Recovery and Reinvestment Act of 2009
gives states and territories to spend their portion of the $300
million. But no one expects the program to last that long. Indeed,
depending on how aggressive the program is promoted, some states could
run through their share of the rebate funds in a matter of months or
even weeks. Several states are coordinating their start dates with
Presidents Day sales in February, others with Earth Day in April.
How much money will I get for a rebate?
Again,
that's up to states to decide, but amounts, should be about $50 to
$250, and can be combined with manufacturer or utility rebates. Some
states are targeting programs to low-income or disabled consumers.
How will I receive my money?
Unlike the Car Allowance Rebate System,
in which dealers handled the paperwork, with cash for clunkers for
appliances, you will have to deal with the forms. A few states may
offer point-of-sale rebates, but most will be mail-in, with what are
likely to be mail-in forms available at participating retailers. You
might also be able to download the forms from the Web site of your state energy office.
Is there a limit to how many rebates I can get?
So far, none of the approved plans mandate any limit. What's more, you can combine these rebates with federal tax credits and incentives offered by local utilities.
What will happen to all the appliances being replaced?
The
DOE required states to include details on how they plan to recycle the
fleet of old appliances. One scenario is that clunkers will be hauled
away by participating retailers. You might qualify for an additional
rebate if you properly recycle your appliance(s). Other states will
require proof that the old appliance was decommissioned in order to
receive the rebate.
—Daniel DiClerico
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