|
 The Energy Star label seems to be everywhere these days. It’s found on everything from refrigerators to computer monitors to houses. But what exactly is Energy Star and how does an appliance so labeled benefit the environment? And how will the new government rebate program called Cash for Appliances save you money on your next Energy Star purchase?
Energy Star is a federal program run jointly by the US Environmental Protection Agency (EPA) and the US Department of Energy (DOE). Products that wear the Energy Star label have been tested by their manufacturers to ensure they meet the government’s minimum standards for energy efficiency. Those standards are constantly updated as products grow more energy efficient, so that Energy Star-labeled products in more than 60 categories are 10 to 30% more efficient than comparable non-Energy Star products.
Results are already adding up. With the help of Energy Star, American consumers saved enough energy in 2008 alone to avoid greenhouse-gas emissions equivalent to those from 29 million cars—all while reducing their utility bills by a whopping $19 billion.
But the Obama Administration has additional plans for Energy Star. A federal "Cash for Appliances" program is in the offing and will arrive at a store near you by November. Similar to the popular and successful “Cash for Clunkers” automobile-rebate program, Cash for Appliances will take inefficient products out of circulation and, hopefully, provide a boost to the economy at the same time.
The $296 million program was a little-noticed part of the Recovery Act. It will offer rebates to buyers of appliances carrying the Energy Star label. Appliance categories eligible for rebates include central air conditioners, heat pumps, boilers, oil and gas furnaces, room air conditioners, clothes washers, stoves, dishwashers, freezers, refrigerators and water heaters. Unlike Cash for Clunkers, consumers do not need to trade in their old appliances to qualify for a rebate.
Experts note that the home appliance industry has been in a slump since 2006—facing the worst down cycle in the industry’s history. Sales dropped 11.8 % in the first half of 2008, according to the Census Bureau's retail-trade survey. Many appliance manufacturers have laid off workers as a result.
Concerns about job security and the recession have led many consumers to repair, rather than replace, their old appliances. But those appliances regularly use 10 to 30% more energy than more efficient modern appliances. The program is designed to encourage consumers to replace energy-wasting refrigerators, stoves, washing machines, etc. with new Energy Star-rated versions. In 2008, about 55% of newly produced major household appliances met Energy Star standards.
"These rebates will help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy," Energy Secretary Steven Chu said.
The government program calls for rebates of between $50 and $200 for high-efficiency household appliances. Unlike Cash for Clunkers, it will be administered by individual states, therefore rebate details may vary from state to state. The DOE expects the bulk of the $296 million to be awarded by the end of November. So, while you’re doing your Christmas shopping this year, keep your eyes open for the Energy Star label and you may be able to go green for less green.
 |
Show/Hide comments
