Courtesy of Susan Hindman

The federal government’s latest economic stimulus effort, the “Cash for Appliances” program, is already under way in some states and about to be implemented in the rest. The appliance rebate program, passed in February 2009 as part of the American Recovery and Reinvestment Act, will give rebates of $50 to $250 per appliance to consumers to replace older appliances with ones that have been certified as energy efficient by the U.S. Environmental Protection Agency’s (EPA) Energy Star program. The government has parceled out $300 million from the stimulus package—to all 50 states, five territories, and the District of Columbia—to fund the program.  

Products that qualify for rebates include boilers, central air conditioners, clothes washers, dishwashers, freezers, furnaces (oil and gas), heat pumps (air source and geothermal), refrigerators, room air conditioners, and water heaters. Only purchases that replace an existing appliance are eligible for a rebate.

It’s a slightly complicated program. Because each state has specific energy needs, each designed its own plan for how the money would be handed out and for which products. Consequently, consumers have to check their state’s rules and specs to learn how to participate.

What else varies by state? The startup date, as we said. Some states have already begun the program; others won’t begin until April. And the startup date is important: Only purchases made during the specific period established by each state are eligible for a rebate. To find out when your state’s program begins, and what it covers, visit the U.S. Department of Energy (DOE) Web site.

Other differences: Some states allow all consumers to participate, while others limit rebates to low-income or handicapped people. The rebated amount varies by state, depending on the product being purchased, the purchase price, and other market factors. Some rebates are mail-in, some are instant. Some states “encourage” recycling, while others make you provide proof that you recycled it before allowing the rebate. Some states require that rebate-eligible appliances be purchased from a participating retailer.

Some examples:

• In Wisconsin, the “cash-back rewards” program began with qualifying purchases made starting January 1, 2010. The rebates are only available to residential customers who are replacing existing heating and cooling equipment or appliances in a Wisconsin residence. Businesses, including landlords, are not eligible. Customers must provide proof of recycling of their replaced appliances and submit applications within specific time frames.
• New York’s program begins in February and includes refrigerators, freezers, clothes washers, dishwashers, and a “high-efficiency appliance package,” which calls for bundling three appliances—and consumers may get a larger rebate if those three appliances “meet standards issued by the Consortium of Energy Efficiency that are higher than Energy Star.” Proof of recycling earns a higher rebate.
• Colorado’s program is for all residents, begins in March, and includes refrigerators, clothes washers, dishwashers, water heaters, furnaces, and gas boilers. The state “encourages” residents to recycle their old appliances.

California’s program begins in March and covers only refrigerators, clothes washers, and room air conditioners. Washington State’s program starts in April and includes only refrigerators and clothes washers. Virginia’s program requires a rebate reservation in advance. North Dakota’s residents also must preregister, and their program covers only refrigerators—and consumers are required to recycle their old refrigerator in order to get the rebate. Oregon’s program is for low-income residents (income at or below 60% of state median income), who receive vouchers to purchase qualified heating systems; in addition, contractors are responsible for removing and recycling the used appliances. Alaska’s program is limited to disabled residents who receive some form of disability payment from the state or federal government.