Rebates and tax credits can lower appliance costs
While you might have back-burnered your plans for a kitchen remodel or a new laundry room, you can’t ignore an ailing dishwasher, a struggling refrigerator, or a washed-up clothes washer.
Fixing these appliances could be an option—see our repair-or-replace-it guide (available to subscribers)—but when you decide to replace appliances, consider more-energy-efficient models. This is one way to spend your federal economic-stimulus payment. And, as unlikely as it might seem, you can also turn to your utility company and the state and local government for some financial relief.
As of mid-May, the Database of State Incentives for Renewables & Efficiency, maintained by North Carolina State University’s Solar Center with funding from the U.S. Department of Energy, lists 732 utility rebate and loan programs for consumers who buy energy-efficient appliances or other home systems. (The DSIRE's map is shown.) The site also includes details on 35 state rebate and loan programs and 13 personal-income-tax-credit or tax-holiday plans.
You’ll also fund information on rebate and tax-credit programs from utilities, states, and partners at the U.S. Environmental Protection Agency’s Partner Activities search; if you don’t see a program listed for your area, look on your utility bill for more information or contact your state taxation office.
These programs can offset the short-term acquisition and long-term operating costs of new appliances. Here’s how to take advantage of these opportunities:
Plug into utility companies’ rebates. To benefit from rebates and tax credits, you have to buy an appliance that falls into either Tier 1 or Tier 2 of the federal government’s Energy Star standards. For example, a Tier 1 rated-dishwasher with an Energy Factor (the number of loads that can be washed per kilowatt-hour) of 0.65 will use 339 kWh per year, while a Tier 2 model will have an EF of 0.68 and use 325 kWh annually.
In California, the Sacramento Municipal Utility District is offering a $25 rebate on a Tier 1 dishwasher and $75 on a Tier 2 model, provided you’re using an electric water heater in your home. In Oregon, the Columbia River Public Utility District ups the ante to a $100 rebate for a Tier 2 clothes washer that uses water from an electric heater, and $50 for one with water heated by gas, oil, or propane.
Brian Lips, a policy analyst at the North Carolina Solar Center at North Carolina State, notes that even if they don’t offer a rebate, many utilities will offer free pickup of an old refrigerator, saving you the disposal fee.
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