Late this year or early next, you will be able to upgrade your home appliances, furnaces and air conditioners and receive a generous rebate for doing so. Like Cash for Clunkers, this program is being established to help both consumers and an economy which continues to struggle through a recovery period. In addition, the program will also improve our environment by offering rebates only on energy efficient appliances. Consumers can get ready to go green and stimulate the economy at the same time.

Retailers and makers of appliances, heating systems and cooling systems have been struggling over the last few years. Sales have seen double digit drops two years in a row, the worst in industry history. The government is hopeful that this program will increase sales for these retailers and appliance makers and boost the economy at the same time.

Cash for Appliances, while federal government funded, will be controlled by each individual state. Three hundred million dollars have been set aside for this stimulus program, and the money will be distributed to each state sometime near the end of November. Each state will get an allotment of money for their individual program based on their population. This will average out to about $1.00 per person.

Right now, your state is coming up with its own plan on how the rebates will work. Each individual state will determine what will qualify for a rebate and what that rebate might be. Once a plan is in place it then has to be approved before moving forward. All state plans must stipulate that rebates can only be given out for appliances that are Energy Star Sealed. The general thought, at this time, is that consumers will most likely see rebates between $50 and $200 per item.

Consumers who take advantage of this program will also benefit with lower energy bills. Energy efficient appliances are said to use up to 30% less energy than their counterparts. Over a year’s time this can add up to a significant amount of savings for homeowners and renters alike. It is the government’s hope that consumers will put that savings back into the economy.

As we near the end of the year, be on the lookout for your state’s Cash for Appliance Plan. If you are interested in taking advantage of this stimulus offering, you will want to be ready. Once the money in your state is gone- so will the rebates available to you.

Cash for Appliances is Coming: What Consumers Need to Know was created by and is property of American Consumer News.

One of these upcoming programs to further stimulate the economy includes the government rebates of $50 to $200 for purchases of high-efficiency appliances with the Energy Star logo. The money is included in an economic stimulus bill that was passed earlier this year, with specific details as far as which appliances are covered in each state will be released by the Energy Department on October 15th.

The problem for appliance giants like Whirlpool and Electrolux is that consumers are simply not running out to replace their aging dishwashers, refrigerators and washing machines. Whirlpool controls almost 50% of the US market for appliances, has experienced a 20% drop in worldwide sales in the first half of 2009 and indicates they will lay off at least 5,000 workers this year as a result. Electrolux has already laid off 3,000 workers since December of 2008, and moved most of their production to lower-cost countries to reduce their overhead. Appliance makers are applauding a government-backed rebate program, as they feel it will get consumers back out to the stores to purchase new appliances to take advantage of the rebates. J.B. Hoyt, the director of government relations at Whirlpool, says “Twenty-five dollars does not get consumers’ attention on a $500 purchase.” Appliance makers are lobbying their state energy commissions to encourage the highest rebates possible for consumers, in order to get the most results of shoppers purchasing new appliances.

The challenge with a “cash for clunky appliances” type program is that most consumers wait until their refrigerator, washing machines or dishwashers no longer WORK before they think about buying a new one. Another common reason to replace appliances is during a home renovation, which most people won’t just start because they’ll save $200 on an appliance, for example. Most people don’t expect an appliance rebate program to be as powerful as the Cash for Clunkers was; but anyone in the appliance industry welcomes any cause of sales in this shaky economy.

Cash For Your Clunky Appliances? was created by and is property of American Consumer News.