Cash for Appliances is Official

Consumers in the market to upgrade their old junkers, starting with cars and now including refrigerators and the like, are in luck this year as federal stimulus dollars are being appropriated to encourage the purchase of energy efficient staples around our homes.

“Cash for Appliances” will utilize nearly $300 million from the American Recovery and Reinvestment Act to fund a rebate program that encourages consumers to purchase ENERGY STAR-certified appliances. Unlike its “Clunkers” predecessor, turning in an old model is not required – although we highly recommend recycling as an option for your washed up washers and dryers.

Some ENERGY STAR-certified models of appliances can save you more than half on your annual electricity costs to run them. Photo: Flickr/Wonderlane

“Appliances consume a huge amount of our electricity, so there’s enormous potential to both save energy and save families money every month,” said Department of Energy Secretary Steven Chu earlier this year. “These rebates will help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy and create jobs.”

Availability for these energy-efficient appliances is abundant. In 2008 alone, 55 percent of major household appliances manufactured were ENERGY STAR-certified. Cash for Appliances would also potentially help boost the sagging sales for these products, as the Association of Home Appliance Manufacturers reports shipments are down 15 percent this year. This was after a 10 percent drop in 2008.

For the greatest potential energy savings, the DOE recommends programs focus on appliances, heating and cooling equipment and water heaters. The rebates’ worth and time lines for receiving them will be determined by individual states and territories, so every program will be a bit different.