Americans Anxious for "Cash for Kitchen Clunkers" to Start

A check of the top Google search trends show that consumers are anxious for the "Cash for Kitchen Clunkers" (or "Cash for Old Applicances" or even "Cash for Refrigerators" to begin. The program is designed to help consumers buy newer energy-saving appliances to replace their old, less-green ones.

In July, U.S. Department of Energy Secretary Steven Chu announced that nearly $300 million in federal funding was available for the "Cash for Kitchen Clunkers" program. While that pales in comparison to the $3 billion allocated to the auto rebate program "Cash for Clunkers," one has to remember how much more cars cost. It's still a decently sized program. Funding comes from the federal economic stimulus package signed in February.

"Cash for Kitchen Clunkers," as opposed to the auto rebate program, will be run by the state, who will set their own guidelines. Energy Star qualified appliance categories eligible for rebates include: central air conditioners, heat pumps (air source and geothermal), boilers, furnaces (oil and gas), room air conditioners, clothes washers, dishwashers, freezers, refrigerators, and water heaters.

Each state (or territory, such as Puerto Rico) will, through their energy offices, be awarded "Cash for Kitchen Clunkers" funding using a formula set forth in the Energy Policy Act of 2005. Each state or territory is required to submit a plan that specifies which Energy Start appliance categories will be included in their rebate program, the rebate level for each product type, how the rebates will be processed, and their plan for recycling old appliances.

"Cash for Clunkers," the auto program, while seemingly helping car dealers and automakers a lot, has still faced criticism. Some said it simply accelerated purchases that would have happened anyway, sans the rebate. Others criticized it for being a short-term boost. Will similar criticism over "Cash for Kitchen Clunkers" appear?

Once again the question will be, is "Cash for Kitchen Clunkers" simply an accelerant? Does it really increase spending, or does it simply encourage people to move their purchases forward? At any rate, those who have old (like mine) refrigerators or other appliances will likely be looking to utilize this program once it begins, late this year or early next, depending on the state.

Cash for Refrigerators, Appliances Next Up

"Cash for Clunkers," at least from a car dealer perspective, was a huge hit. A $300 million cash-for-clunkers-type federal program to boost sales of energy-efficient home appliances, nicknamed "Cash for Appliances" or "Cash for Refrigerators" is apparently coming, in late fall 2009.

While billed, just as "Cash for Clunkers" was, as a way to get rid of old, less environmentally-friendly appliances, "Cash for Refrigerators" (or appliances) will also help the appliance industry, which has been severely impacted by Americans' new frugality.

"Cash for Refrigerators" will authorize rebates of $50 to $200 for purchases of high-efficiency household appliances. While many on the right are making fun of the new program, it should be noted how many GOP reps in the House were quick to pass the "Cash for Clunkers" extension, as well as speaking for it as well. A few in the Senate crossed over, as well.

The Energy Dept. expects the bulk of the "Cash for Appliances" $300 million to be awarded by the end of November. Hey, I'll look into it; we could use a new refrigerator. Unlike the "Cash for Clunkers" program, consumers won't have to trade in their old appliances.

It should be remembered that while "Cash for Refrigerators" (or appliances!) is a federal program, there are rebate programs for buying energy efficient appliances from states, local governments, and utilities already in place. Unfortunately, PG&E doesn't offer any refrigerator rebate in my area.

Will this spur demand? Some are skeptical. For one, the rebate doesn't compare to "Cash for Clunkers." For another, refrigerators and appliances just don't resonate with people as cars do.