Cash for Refrigerators

Cash for Refrigerators

Cash for Refrigerators, Cash for Appliances to Begin Fall 2009 Now that the Cash for Clunkers program is over, your tax dollars will begin funding the Cash for Refrigerators and Appliances program later in 2009. The Cash for Refrigerators and Appliances plan will be funded by the Energy Department, and is an effort to get people to move to more energy efficient appliances. As reported here, the government will be offering a Cash for Refrigerators and Appliances program so you can trade in your old energy-consuming refrigerator, washer/dryer, etc.

How much money are we talking about? It’s $50 to $200, depending on the appliance that you’re turning in. The whole program will run about $300 million, considerably less than the $2 to 3 billion that the Cash for Clunkers program cost you. $50 to $200 may not sound like much, since it’s not as much as the $4500 the government was offering for old cars in the Cash for Clunkers program. However, considering that most old appliances are worthless and can’t be sold for anything, the government is essentially offering something for nothing.

The payments will be rebates to purchase new appliances. While it’s been dubbed “Cash for Refrigerators” by the press, it also applies to other appliances, most importantly washer/dryers, which consume a huge amount of energy. Is another government program what we need here? Will this really get job creation going? So far nothing that Obama has done has gotten people working again. This is the wrong approach. Government welfare in the long run does not do the economy any good.

Cash for Refrigerators

Cash for Refrigerators

Cash for Refrigerators (aka the household appliances stimulus plan) will start fall 2009. How much money? $50 to 200 for your older poor efficiency appliance. Considering a new exceptional washer can cost you as little as $200, the plan is a great idea. The plan varies state by state. The Energy Department has set October 15 as each state’s deadline for filing applications.

The payments will be as rebates. Energy Secretary Steven Chu said in a recent statement the following about the plan: “These rebates will help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy.” But if you’ve bought an appliance in the last few years, you know the rebate offer is not new. This rebate will just go on top of existing rebates already posted in 25 states on appliances that carry the Energy Star seal. In fact, reports say further discounts at Home Depot and Lowe’s on such appliances recently reportedly have not drawn substantially increased buying.

A $300 million cash-for-clunkers-type federal program to boost sales of energy-efficient home appliances provides a glimmer of hope for beleaguered makers of washing machines and dishwashers, but it’s probably not enough to lift companies such as Whirlpool (NYSE:WHR – News) and Electrolux out of the worst down cycle in the sector’s history.