New "Cash for Clunkers" Targets Appliances
by GrandForksHerald.com Posted on 11/5/2009
First, it was motor vehicles; now, the federal government's "Cash for Clunkers" program wants consumers to invest in energy-efficient refrigerators, stoves, washers and dryers.
Now, the federal government's "Cash for Clunkers" program wants consumers to invest in energy-efficient refrigerators, stoves, washers and dryers.
The $296 million program is set to begin in spring in Minnesota and North Dakota, once the government approves each state's plan of what types of Energy Star appliances it will include. The money is part of the broader economic stimulus bill pass earlier this year. Unlike the auto program, consumers won't have to trade in their old home appliances to receive rebates of $50 to $200 on the purchase of an Energy Star appliance.
Only appliances covered by Energy Star will qualify. In 2008, a little more than half of newly produced major household appliances met the standards set by the U.S. Department of Energy and the Environmental Protection Agency. Their data said the average household will cut their energy bills by about a third and reduce greenhouse gas emissions with Energy Star appliances.
Joey Soderfelt at Dakota TV and Appliance in Grand Forks said in-store customers have been inquiring about the program.
"Upward of 80 percent of the dishwashers we stock comply with Energy Star requirements," Soderfelt said. "With refrigerators, that number is 50 percent, and with washing machines, 95 percent."
The home appliance industry has been mired in a sales slump that began when the housing market fell in 2006. The North Dakota Department of Commerce said the state expects to receive about $615,000, with 10 percent to 25 percent covering administrative costs. Soderfelt said that overhead will be higher.
"If we have $200,000 to give to customers, I'd be surprised," he said.
Minnesota will receive $5 million.
Not every retailer has been informed of the federal stimulus program. Media relations for national chains Lowe's and Menards said they're awaiting corporate directives.
"We haven't heard much about it nor are we relying on those types of programs to drive our business," Menards spokesman Jeff Abbott said.
"During the winter, most of our washers and dryers are out the door in December," said Kristen Williams, sales manager at Aaron's in Grand Forks.
