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November 8, 2009

'Cash for appliances', new 'cash for clunkers'

REESHA BROWN

“Cash for clunkers” ran out of gas, but now there is a new program fueled up and ready to begin at the end of November called, “cash for appliances.”

Cash for Clunkers was such a success, the federal government recently announced the creation of a similar rebate program for consumers to purchase new energy-efficient appliances.

“Replacing older appliances with more energy efficient models will not only help the environment and provide a little boost to the economy, it will also have a positive impact on a homeowner’s bottom line when the energy bills come in month after month,” Michael Clayton, President and CEO of the Better Business Bureau in Southeast Texas, said in a press release.

The federal government set aside $300 million from the stimulus package to fund the cash for appliances program.

Unlike the cash for clunkers program, participants would not have to trade in their old appliances to purchase new ones. Cash for appliances allows consumers to either trade in appliances or purchase energy-efficient models and receive rebates ranging from $50 to $200 by late 2009 or early 2010.

Texas is eligible for $23 million in rebates. The amount tha will be awarded to Southeast Texans has not yet been determined.

According to the Better Business Bureau, the point of the program is to stimulate the economy in the appliance industry and to increase energy efficiency in households by replacing old appliances with newer “greener” ones.

The typical household spends more than $2,200 a year on energy bills but could save over one-third or about $700 per year by switching to Energy Star products.

Cash for appliances has already sparked public interest in the Port Arthur community, especially among Harry Stevens, Harry’s Appliance Store owner in Orange who said business has been booming, but when cash for appliances jump-starts, the program might boost the flow of business a little more.

“I don’t see how the program wouldn’t affect the business,” Stevens said. “We got people out there who use refrigerators, those appliances stay on all night and it eats up the energy bill, so I don’t see why this wouldn’t help. If it isn’t an energy star model it eats up the bill.”

Phillip Farrow, a Fannett resident, said he plans to take advantage of the cash for appliances program because in the long run it saves money on bills.

“It’s a good opportunity to get rid of less money efficient appliances,” Farrow said. “Just like the cash for clunkers deal worked for a lot of people I think this will too.”

Each state will decide which energy star qualified appliances are eligible for a rebate. According to the U.S. Department of Energy’s web site, the following appliance categories are eligible for a rebate: Central air conditioners, heat pumps, furnaces, refrigerators, water heaters, freezers, dishwashers, clothes washers, and boilers.

For more information, please visit the following website, www.energy.gov/recovery/.

rbrown@panews.com

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