States Eyeing Spring Rollout For Appliance Rebates
October 02 2009 - 4:22PM
Dow Jones News
Would-be buyers of household appliances in many states will
likely have to wait until spring to take advantage of the $300
million in federal rebates on energy-efficient appliances.
State plans for distributing rebates are due at the U.S.
Department of Energy by Oct. 15, but constructing the actual
programs and coordinating and testing them with retailers and
manufacturers is expected to take months to complete after the
Energy Department signs off on the states' plans.
The rebates, which were authorized in the U.S. economic stimulus
legislation earlier this year, were originally anticipated to start
flowing by the end of the year. But appliance industry experts say
many states need more time to offset their lack of experience with
consumer rebate programs.
"It's a new program, so it's going to take us a while to get it
in place," said Shane Hix, a spokesman for the Georgia
Environmental Facilities Authority, which is soliciting proposals
from private companies to manage the distribution of Georgia's $9.3
million for rebates. Hix declined to speculate on when Georgia's
rebate program would commence.
The appliance rebates have attracted widespread public attention
in the wake of the popular "cash for clunkers" rebate program this
summer to encourage sales of new cars.
Sales for appliance manufacturers Whirlpool Corp. (WHR), General
Electric Co. (GE) and Electrolux AB (ELUXY) are down sharply as
consumers pull back on discretionary purchases in response to the
economic recession. The rebates, which are expected to range from
$50 to $200 on individual appliances, are intended to lure
consumers back to retail showrooms, as well as purge households of
aging appliances that use more electricity than new models.
To reinforce the conservation theme, Florida intends to start
its rebate program around Earth Day, April 22.
"That's perfect timing," said Jeremy Susac, director of the
Florida Energy Office. "The retailers can leverage advertising
showing responsible energy consumption and energy reduction."
Florida estimates its $17.5 million for rebates could account
for the purchase of at least 65,000 household appliances during a
rebate period expected to run for less than two weeks. To expedite
the anticipated flood of rebate claims, Susac said, the state is
looking at fulfillment companies to assist with the rebates.
Sparing consumers from bureaucratic red tape is a paramount
consideration for program organizers.
"It's important to develop a program that minimizes the effort
the consumer has to go through to get that rebate right away," said
Seth Effron, a spokesman for the North Carolina Energy Office.
Effron said North Carolina is contemplating a two-phased rollout
of its $8.8 million rebate program starting in late March or early
April. The initial phase would cover dishwashers, clothes washers,
refrigerators and other appliances. Later in spring rebates will be
extended to water heaters, furnaces, central air conditioning
systems and other large climate control systems.
The Energy Department has encouraged states to craft the
programs to coincide with states' energy conservation
priorities.
- By Bob Tita, Dow Jones Newswires; 312-750-4129;
robert.tita@dowjones.com