Appliances: Special Savings in 2010

Similar to 2009’s “Cash for Clunkers” program which focused on getting low mileage cars off the road, the federal appliance rebate program wants to motivate people to buy energy efficient appliances like clothes washers, refrigerators and other “Energy Star” designated appliances.

New Hampshire will receive roughly $1.3 million of the $300 million in stimulus funding available from the American Recovery and Reinvestment Act. The program is tentatively due to begin in March but watch for news as the program will end just like it did for last year’s Cash for Clunkers. All eligible appliances must conform to Energy Start specifications, but only those appliances designated by NH are eligible for these rebates.

Questions you’ll want to research when deciding which appliances to buy:

• What appliances will be eligible in NH (each states selects their own)? Current plans look like NH will offer cash for … hot water heaters, furnaces and boilers.
• Who will issue the rebates? … mail-in rebates but to who?
• Who is eligible for rebates, i.e. are there any income restrictions?
• Do you have to turn in old appliances, i.e. like they did with cars?
• Can you get more than one rebate?
• Can appliance rebates be combined with the Federal energy tax credit? Consumer can combine a state rebate with the federal tax credit for the same product, as long as the purchase qualifies under the rules of both programs and is not specifically excluded

Which Appliances Are Right for You?

Energy savings will depend on the specific appliance and model being replaced, generally older than 5 to 7 years. Replacing a washing machine made before 2000 with a new Energy Star model can save up to $135 per year. Replacing a refrigerator made before 1993 with a new Energy Star model can save up to $65 per year. It’s important to make sure you save enough in water and energy bills over time to justify paying for a new unit.

New Hampshire is focusing this program on fixtures that are key to every home (hot water heaters, furnaces and boilers) because they already have energy solutions for other appliances. Visit nhsaves.com for details on these other programs.

Older appliances like a 20 year old refrigerator uses three times the energy of newer model refrigerators, but you won’t get the savings if you decide to keep both refrigerators which is a problem. The real savings is to replace, not add appliances and the Energy Department estimates Americans were able to save more than $19 billion on utilities in 2008 using Energy Star products. Remember the federal tax credit for 30 percent of the cost, up to $1,500, of equipment for a primary residence remains in place through December 31, 2010.