WASHINGTON–In an effort similar to the “cash for clunkers” program for the auto industry, the U.S. Department of Energy will make available nearly $300 million in funding for consumer purchases of new Energy Star-qualified home appliances.
The money will be awarded to states and territories, which will be required to submit a plan that specifies which Energy Star appliance categories will be included in their individual rebate programs, the rebate level for each product type, how the rebates will be processed and how old appliances will be recycled. The Energy Department said in a statement that it anticipates that the vast majority of the fund will be awarded by Nov. 30. The department also recommended that the states and territories focus their programs on heating and cooling equipment, appliances and water heaters—appliances that offer the greatest savings potential.
Energy Star appliance categories eligible for rebates include central air conditioners, heat pumps, boilers, furnaces, room air conditioners, clothes washers, dishwashers, freezers, refrigerators and water heaters. The funds are available through the American Recovery and Reinvestment Act, which is appropriating money to help spur economic growth, create jobs, save energy and reduce greenhouse gas emissions.