Cash for Clunkers for Appliances FAQ
What you need to know about the $300 million State Energy Efficient Appliance Rebate Program
Today is the deadline for states to submit an application for the U.S. Department of Energy's $300 million State Energy Efficient Appliance Rebate Program, otherwise known as cash for clunkers for appliances. 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.
The DOE hasn't provided an official deadline but is working toward awarding funding to the states by November 30, according to the Jen Stutsman, deputy press secretary for the DOE. You should be able to take advantage of a rebate by late 2009 or early 2010, according to Stutsman, who adds that the rollout is likely to happen on a state-by-state basis.
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 weeks or a couple of months.
How will the $300 million be divvied up?
It's being 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, will receive just over $35 million, while Alaska's 686,000 residents will get $658,477.
What appliances will covered by the rebate program?
Each state will decide what's covered and how much the rebates will be for each appliance, but most seem to be going with DOE recommendations, including refrigerators, freezers, washers, dishwashers, central and room air conditioners, air-source and geothermal heat pumps, boilers, and oil and gas furnaces. Models will probably need to be Energy Star qualified, where applicable, to qualify for a rebate.
How much money will I get for a rebate?
Again, that's up to states to decide. Some might opt for a flat discount, say 20 percent on all qualifying models. Others might choose a tiered system, maybe $50 for purchases up to $500 and $250 for purchases of $1,000 or more. Or the rebate could be appliance specific, for example $50 for air conditioners, $100 for dishwashers, $200 for refrigerators, and so on. Some states might target programs to low- or lower-income 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. The rebates will probably 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?
States we spoke with say there will be no 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 is requiring states to include details on how they plan to recycle the fleet of old appliances. One likely 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).
Where can I find the latest information?
We'll be providing regular updates as news and details emerge. Your state energy office is another good source of information. We also expect manufacturers and retailers to spread the word on their Web sites, the way car dealers did last summer.—Daniel DiClerico | e-mail | Twitter | Forums | Facebook
Essential information: Use our repair-or-replace information (available to subscribers) to find out whether it makes sense to replace your older appliances. You'll find links to our free buying guides for appliances on our appliance-reviews page. Once you've decided to take advantage of cash for clunkers for appliances, learn about the best places to buy appliances.
Will the cash-for-clunkers-for-appliances rebates be offered nationwide?
Every state and eligible territory submitted a preliminary application to the DOE in August expressing interest in the program. It's unlikely that any state or territory won't follow through on that initial intent. The DOE could reject an application, but that's unlikely since all the states we've contacted seem to be closely following DOE's program guidelines.
The DOE hasn't provided an official deadline but is working toward awarding funding to the states by November 30, according to the Jen Stutsman, deputy press secretary for the DOE. You should be able to take advantage of a rebate by late 2009 or early 2010, according to Stutsman, who adds that the rollout is likely to happen on a state-by-state basis.
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 weeks or a couple of months.
How will the $300 million be divvied up?
It's being 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, will receive just over $35 million, while Alaska's 686,000 residents will get $658,477.
What appliances will covered by the rebate program?
Each state will decide what's covered and how much the rebates will be for each appliance, but most seem to be going with DOE recommendations, including refrigerators, freezers, washers, dishwashers, central and room air conditioners, air-source and geothermal heat pumps, boilers, and oil and gas furnaces. Models will probably need to be Energy Star qualified, where applicable, to qualify for a rebate.
How much money will I get for a rebate?
Again, that's up to states to decide. Some might opt for a flat discount, say 20 percent on all qualifying models. Others might choose a tiered system, maybe $50 for purchases up to $500 and $250 for purchases of $1,000 or more. Or the rebate could be appliance specific, for example $50 for air conditioners, $100 for dishwashers, $200 for refrigerators, and so on. Some states might target programs to low- or lower-income 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. The rebates will probably 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?
States we spoke with say there will be no 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 is requiring states to include details on how they plan to recycle the fleet of old appliances. One likely 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).
Where can I find the latest information?
We'll be providing regular updates as news and details emerge. Your state energy office is another good source of information. We also expect manufacturers and retailers to spread the word on their Web sites, the way car dealers did last summer.—Daniel DiClerico | e-mail | Twitter | Forums | Facebook
Essential information: Use our repair-or-replace information (available to subscribers) to find out whether it makes sense to replace your older appliances. You'll find links to our free buying guides for appliances on our appliance-reviews page. Once you've decided to take advantage of cash for clunkers for appliances, learn about the best places to buy appliances.
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Posted by: Amy | Nov 1, 2009 3:55:12 PM
According to NYSERDA.org, NYSERDA plans to launch the program in NY in mid-February, during President’s Week. Under the proposed plan, customers purchasing appliances would qualify for a rebate of $75 ($105 with documented recycling) for ENERGY STAR qualified refrigerators, $75 ($100 with documented recycling) for clothes washers and $50 ($75 with documented recycling) for freezers. Rebates are available for dishwashers when they are purchased as part of a three-appliance package (refrigerator, dishwasher, clothes washer), which may qualify for a $500 rebate ($550 with documented recycling).
Posted by: Bobbie J Newby | Nov 15, 2009 11:50:40 PM
when does these rebates start and if you have to buy heat and air before it goes into efect can you get a rebate on it we are needing to buy heat and air now