Blog
August 22nd, 2009 (Modified on October 12th, 2009)

Update1: Appliance Rebates Coming Soon

by

 

(hat tip: Fundmastery)

Update1: Despite the fact that the premise behind the Cash for Clunkers (C4C) auto program has been criticized as “crackpot economics,” the strategy of replacing (and in some cases destroying) older goods with more energy-efficient products has been a hit with consumers, and several other industries are taking note (whether it’s a good or bad thing is certainly up for debate).

Earlier this month we reported that the C4C theme made it’s way to the world of old refrigerators (see original post below). Like many other products, appliance sales have suffered during the economic downturn. In a combined effort to spur sales and to create a more energy-efficient society, the Energy Department has allocated $300 million from the Federal stimulus package for states to develop their own appliance rebate initiative.

They’re calling it “Dollars for Dishwashers”:

It’s expected that the rebates will range from $50 to as much as $200 per appliance. The Energy Department has given states the flexibility to determine which Energy Star appliances should be included in the program, but the Energy Department hopes states will focus on products that are used for heating and cooling such as air conditioners, water heaters and furnaces.

States had until Aug. 15 to express their interest in participating in the program, and all 50 states are on board, according to an Energy Department spokeswoman. Now, the states will receive federal money to develop their program and draft the details by Oct. 15.

(Original post, “Cash for Clunker Refrigerators,” was published 8/8/09)

Not quite ready to part with that old vehicle? How about that clunker of a fridge you have stashed out in the garage or down in the basement? The number of programs that provide consumers with cash in exchange for their old, energy-inefficient refrigerators are growing:

Programs that allow homeowners to trade in their old refrigerators and scoop up a rebate — a sort of “cash for clunkers” system for the fridge — are spreading quickly across the country.

Last week, New Jersey began a statewide program that offers residents a $30 rebate by recycling eligible refrigerators or freezers. Old refrigerators and freezers in Vermont also fetch $30, under a program begun last month.

It’s estimated that an old fridge — made before 1995 — can cost homeowners an extra $150 a year on their electrical bills because older units use about three times more electricity than the newer, more fuel-efficient models.

For more on this subject, be sure to read “Keep Your Old Fridge/Freezer & Still Save Cash.”

Share and Enjoy:
  • email
  • Print
  • RSS
  • Add to favorites
  • Yahoo! Bookmarks
  • Facebook
  • Twitter
  • Technorati
  • Digg
  • del.icio.us
  • Google Bookmarks
  • StumbleUpon
  • Yahoo! Buzz
  • Mixx
  • BlinkList
  • Live
  • Reddit

13 Responses to “Update1: Appliance Rebates Coming Soon”

  1. Lucia Says: August 10th, 2009 at 1:21 pm

    Refrigerators will use 50% less electricity if ice is kept inside the box. I use frozen jugs set in a plastic tub to catch condensation and put them in the back of the box. Freezers will run less if jugs of ice replace empty places as food is used up. Sure beats the paying $1000 or more for a new ‘frig.

  2. Tim Manni Says: August 10th, 2009 at 3:02 pm

    Wow I never heard of that…If that’s a proven system, it would make a great follow up story!

    Thanks Lucia,

    Tim

  3. Lucia Says: August 11th, 2009 at 12:31 pm

    Prove it to yourself, Tim. Time the difference between how long the ‘frig runs with and without a couple frozen juice jugs on the back shelf. Even freezer manufactures say that a full box stays colder than a half empty one and allows the motor to run less.

  4. Tim Manni Says: August 11th, 2009 at 12:37 pm

    Lucia,

    I’m definitely going to try it. Thanks.

  5. william128 Says: August 24th, 2009 at 1:04 pm

    OMG cam we please stop this bs already, w are trying to save companies while the cunsumer doesn’t have any money or a job to begin with. If you do have a job your credit is prob completely screwed by now. Not a solution Obama!

  6. Lucia Says: August 24th, 2009 at 1:37 pm

    It’ll be interesting to see how well this program does. As an appraiser, I’ve noticed that it’s been the rare homeowner that didn’t upgrade their appliances within the past 5 years, so I wonder if demand wouldn’t be more tepid than with the vehicle rebates.

  7. Tim Manni Says: August 24th, 2009 at 1:44 pm

    William,

    Thanks for commenting. I don’t know if the president is looking at this as a “solution,” but, you’re right — it’s not the answer to our problems. I believe it’s just another nudge to get the healthy consumers (and there are some out there) to spend (on energy-efficient products nonetheless).

    Thanks,
    Tim

  8. Tim Manni Says: August 24th, 2009 at 1:56 pm

    Lucia,

    “I’ve noticed that it’s been the rare homeowner that didn’t upgrade their appliances within the past 5 years”: That doesn’t surprise me.

    For a while now certain states have conducted their own rebate/trade-in appliance program. I’m thinking demand will be steady without extraordinary spikes in demand. Appliances breakdown and need replacing. The program will certainly help those ready to replace broken machines, but, like Cash for Clunkers, I’m sure it will lead a given audience into the appliance stores before they would have otherwise been ready.

    Great hearing from you, thanks,
    Tim

  9. Linda Says: August 25th, 2009 at 8:29 am

    I think we all need to remember that this mess we are in was created by George Bush and President Obama is doing what it takes to clean it up. If you don’t need a new car or appliance, don’t get one. If you do, take advantage of an offer that you would never have received under Mr. Bush.

    Just speaking my mind.
    Linda

  10. Tim Manni Says: August 25th, 2009 at 10:32 am

    Linda,

    Your opinions are always welcome here! Now, President Bush did provide us consumers with a $600 stimulus check (economists didn’t think it was very effective, but hey, I’m not going to argue with $600 extra dollars in my bank account).

    But you make the most down-to-earth point I’ve heard about all these incentive programs so far, if you happen to need a new appliance (or car, whatever it may be), great, if not, oh well, don’t go out of your way and stretch your budget if you don’t.

    Great point, thanks for commenting,
    Tim

  11. John Palmer Says: August 29th, 2009 at 4:45 am

    Yep looks like it’ spreading fast.. Just saw a site http://DollarsForDishwashers.bz Will be interesting to see what happens.

    John

  12. Tim Manni Says: August 31st, 2009 at 11:40 am

    Thanks John, we’ll check it out,

    Tim

  13. Cash for…Golf Carts? It’s True | Mortgage Loan Refinance Guru Says: October 21st, 2009 at 3:32 am

    [...] more read: Update1 A New Tax Deduction…For Pets? Update1 Appliance Rebates Coming Soon Well, That Didn’t Last [...]

Leave a Comment

Receive Updates via Email

Delivered by FeedBurner

About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

Our bloggers:

Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

Connect With Us

  • rss feed icon
  • facebook icon
  • twitter icon

Compare Lowest Mortgage Rates

$