The Obama administration is currently considering a $300 million program to offer rebates to consumers that purchase household appliances meeting ENERGY STAR standards, according to a BusinessWeek report.
The Energy Department estimates that the bulk of the funds will be used by the end of November, with rebates between $50-200 for appliances such as dishwashers, refrigerators and washing machines.
The money has already been earmarked as part of the economic stimulus package passed earlier this year.
In 2008, 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.
The U.K. is discussing a different incentive to encourage energy-efficient appliance purchases called “Cash for Appliances.” The British Retail Consortium is requesting that the government waive its value added tax (VAT) on all energy-efficient appliances to encourage trade ups. The VAT on household appliances in the U.K. is typically 15 percent.
Unlike the recently expired Cash for Clunkers, Cash for Appliances would not require consumers to trade in or recycle their old models. The process for recycling appliances and autos is very similar, as both are shredded to extract metal.