Now it's "Cash for Clunker Appliances"?

Over the last couple of months I blogged about the “Cash for Clunkers” program which ended a few weeks ago with mixed reviews. The end result, regardless, was that it did take some old gas guzzlers off the road, managed to clear the dealer’s lots of over 450,000 of built up inventory of unsold vehicles and even put some assembly lines back to work Now I read in an article from freelance writer Aaron Crowe published on “Wallet Pop” that the next phase is a stimulus program to promote the sales of high energy efficient appliances. The following is an excerpt from Mr. Crowe’s article for whom I extend full credit and thanks for the article::
“With the federal "Cash for Clunkers" program such a resounding success and now out of money, prepare for the next wave of federal stimulus money “Cash for refrigerators”. That isn't the formal name of the federal program, which is set to begin late this fall with rebates of $50 to $200 on purchases of high-efficiency household appliances, part of a $300 million stimulus to boost home appliance sales. Users won't have to trade in their old dish washers, refrigerators or other appliances to get the rebate. The Energy Department expects most of the $300 million to be awarded by the end of November, although given the success of the car program, you might want to get in line early at your favorite home supply store. (Other sources say the money and the program will be fully exhausted by November 1) Program details will vary by state, and states have until Oct. 15 to file formal applications with the Energy Department.

New appliances must have an Energy Star seal to qualify. In 2008, about 55% of newly-produced major household appliances met those standards, which are set by the Energy Department and the Environmental Protection Agency.

"These rebates will help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy," Energy Secretary Steven Chu said in a statement announcing the plan, according to “BusinessWeek” (magazine).

Most states already have rebates for energy-saving appliances. When I bought a new washing machine last month, I was eligible to get $200 from my power and water companies because it used less electricity and water than what it replaced. And, as anyone who has had an appliance repairman stop by can tell you, it's usually cheaper to buy a new appliance than have it fixed.

The new rebates will be in addition to existing rebates that utilities or stores already offer. And beyond the extra money, the best news may be that you don't have to drag your old appliance to the store to get the rebate. Buying a new washing machine may not be as much fun as buying a new car with a clunker trade-in, but it's a lot cheaper way to stimulate the economy while saving money.” (this ends Mr. Crowe’s article)
The down side to this program is similar in some ways to the “Cash for Clunkers” program in that a vast majority of the products sold with that program came from foreign manufacturers with Toyota being the big winner in the last calculations that I read. Appliances will be no different with the major American brands now manufactured outside of the U.S., especially in Mexico. Granted it will still serve to diminish inventory in your local appliance store and will provide a tremendous energy savings by getting the old “clunker” appliances out of service, that is if they truly disappear from service and don’t just appear on Craigslist because there is no requirement to destroy the old offending appliances.
As Mr Crowe’s article mentions there are programs in place in many states that already offer rebates or sales tax exemptions on energy savings appliances and even on plumbing fixtures, HVAC systems, lighting products and many other items. Whether this new program lures you down to the local appliance store to replace your old “Norge” or not the best thing to do, whenever you decide its time change any major appliance, fixture or device in your home, is to check with your local utility company, search the internet, talk to friends and discuss with retailers the many ways to save money on the initial purchase as well as long term energy savings.