Government offers 'Cash for Appliances'

PENSACOLA, Fla. - After the success of the Cash for Clunkers program, the federal government recently announced the creation of a similar rebate program for those who purchase new energy-efficient appliances. While many details are yet to be determined, your BBB offers guidance to those looking to take advantage of the program.

The federal government set aside $300 million from the stimulus package to fund the cash for appliances program. The program seeks to help stimulate the economy in an industry that's seen a 15 percent drop in sales, according to the Association of Home Appliance Manufacturers, and to increase energy efficiency in households. According to ENERGYSTAR.gov, an average household could save $700 a year by switching to newer, "greener" ENERGY STAR products.

The U.S. Department of Energy and the Environmental Protection Agency set ENERGY STAR standards and help consumers identify energy-efficient products in 60 different categories including appliances, windows and doors, heating and cooling equipment and water heaters.

"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," said Norman Wright, president and CEO of your BBB Serving Northwest Florida.

The following are a few details on the evolving cash for appliances program:

• Program implementation will vary by state. Florida's program is anticipated to last for ten days in April 2010 and run in conjunction with Florida's Earth Day events.

• Qualifying appliances will vary by State. According to the Florida Energy & Climate Commission, Florida will offer rebates on the following ENERGY STAR appliances: refrigerators, freezers, washing machines, dishwashers, room air conditioners and gas tank-less hot water heaters.
   
• No trade-in will be required. Unlike the Cash For Clunkers program, participants in cash for appliances don't have to exchange an older appliance for a new one.

• Stay tuned for updates. Visit your state's energy department's Web site for updates on program implementation in their area. More information from the federal government is available at http://www.energy.gov/recovery/.

• Take advantage of additional programs now. If you can't wait to purchase a new appliance, you can still take advantage of other programs. Both the federal government and many state governments already provide tax credits for purchasing energy efficient appliances. The Database for State Incentives for Renewables & Efficiency provides a state-by-state breakdown of local incentives.

For additional advice you can trust on being a savvy consumer, start with bbb.org.