Government Appliance Rebate Program Explained

image: old water heaterThe U.S. Government has set aside $300 million for the appliance rebate program. This Government appliance rebate program or the ‘Stimulus Bill‘ (American Recovery and Reinvestment Act) offers consumer rebates on select ENERGY STAR qualified appliances. These appliances may include:

  • central air conditioners
  • heat pumps (air source and geothermal)
  • boilers
  • furnaces (oil and gas)
  • room air conditioners
  • clothes washers
  • dishwashers
  • refrigerators/freezers
  • water heaters

How It Works:
The U.S. Government has given each State the authority to develop their own government appliance rebate program using the government’s guidelines. Individual states can decide the amounts of the appliance rebates up to $200 (reported) per selected appliance that is Energy Star qualified. Each state develops it’s own rebate program and may choose which appliances to include as long as it is on the list of approved Energy Star appliances that the U.S. Government listed. States will receive formula-based funding in order to start or continue an already established ENERGY STAR appliance rebate program.

When The Government Appliance Rebate Program Starts:
Each state had until October 15, 2009 to submit their appliance rebate program details to the U.S. Department of Energy for approval. The DOE said it will take several weeks to process all of the applications. Once the state’s government appliance rebate program applications are approved they can begin to launch the individual programs. The Appliance Rebate Program should be available for consumers by late 2009 or early 2010, depending on each state’s progress.

Why An Appliance Rebate Program?
Officially called the the American Recovery and Reinvestment Act, the stimulus bill is very simple. To paraphrase in layman terms the appliance rebate program has two basic objectives: (1)Save energy and reduce fossil fuel emissions while (2) stimulating the economy with a Stimulus Rebate Incentive Program. Consumer spending, while on the rise, should increase once the Government appliance rebate program goes into full effect. Like Obama’s Cash For Clunker Stimulus Program the Energy Efficient Appliance Rebate Program (eearp) is a two-fold concept. While boosting the economy with an incentive program the Country benefits from a cleaner environment. First, with fewer early model cars on the road and now with more energy efficient appliances in operation. That’s the reasoning behind allowing only Energy Star qualified appliances into the program. ENERGY STAR is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy to help consumers and business save money while also protcting the environment by using energy efficient products.

Conclusion / Commentary:
image: Brian D. hawkinsJust like every other Government sponsored stimulus program, there will almost certainly be a lot of controversy surrounding the issue. The media has yet to decide it’s role in the push for guiding popular opinion, probably waiting to see if consumers actually save hundreds of dollars with the government sponsored rebates on appliances this fall. Radio talk show hosts will without a doubt seize this golden opportunity to lodge yet another dagger into the heart of Obama Administration. The bottom line? That depends of you. If you are anything like me, with a ten year old gas water heater on it’s last leg and energy bills out of control you can’t wait to take advantage of the appliance rebates. I only hope it amounts to huge savings and not just a big marketing boost for big business. If I can get a $200 rebate or tax incentive on a $900 hot water heater I’m going to be jumping up and down. Our dishwasher and stove are also out-dated but I didn’t see stoves on the list but I guess we’ll see. Personally, I would love to update my furnace but that’s a big ticket item in my world and a two hundred dollar appliance rebate will hardly afford me the opportunity to replace it. I guess I can’t, after all, ask for an entire home makeover from a single Government incentive program paid for with taxpayer money. Where is Ty Pennington when you need him?

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