State Energy Efficient Appliance Rebate Program

August 28, 2009

More than 70% of the energy used in our homes is for appliances, refrigeration, space heating, cooling, and water heating. Replacing old appliances and equipment with those that are ENERGY STAR® labeled can help American families save significantly on their utility bills.

State Administered Program

The U.S. Department of Energy (DOE) has announced a new ENERGY STAR appliance rebate program, administered by state energy offices. Up to $300 million in funding from the American Recovery and Reinvestment Act will be made available to states to promote the purchase of energy efficient appliances. Under this program, consumers can receive rebates to purchase new ENERGY STAR-qualified appliances when they replace their used appliances.

Appliance Rebates Available Late 2009 and Early 2010

The rebates will be available later this year or in early 2010. Each state and territory will choose dollar amounts for the ENERGY STAR products selected. Amounts commonly offered range from $50 to $250, depending upon the product being purchased, purchase price, and other market factors. Federal tax credits and other financial incentives may be claimed for the same products, as long as they qualify under the rules of the programs and are not specifically excluded.

Federal Tax Credits for Energy Efficient Home Improvements Available Now

Federal tax credits are available now for many home energy efficiency improvements, including windows, doors, water heaters, and HVAC equipment for existing homes. For more information, see ENERGY STAR's Federal Tax Credits for Energy Efficiency Web page.

Save Energy and Money at Home

Energy savings will depend on the specific appliance and model being replaced, but new ENERGY STAR appliances save significantly more energy than those manufactured years ago. For example, replacing a clothes washer made before 2000 with a new ENERGY STAR model can save up to $135 per year. Replacing a refrigerator made before 1993 with a new ENERGY STAR model can save up to $65 per year.

Types of Appliances

Each state and territory may select its own set of ENERGY STAR-qualified products to rebate. DOE recommends the following appliances:

  • Boilers
  • Central air conditioners
  • Clothes washers
  • Dishwashers
  • Freezers
  • Furnaces (oil and gas)
  • Heat pumps (air source and geothermal)
  • Refrigerators
  • Room air conditioners
  • Water heaters

More information about ENERGY STAR appliance rebate program will be available from your state's energy office. For more information on energy efficient appliances, visit EERE's Energy Savers Web site.

Frequently Asked Questions

How can I apply for a rebate?

State energy offices will administer the rebate program. Consumers should expect rebates to be available in late 2009 or early 2010. States and territories must first submit plans to the Department of Energy that detail how their residents can qualify for the rebates. The plans must include a list of products, the rebate amounts, and the process for applying for the rebates. Those plans are due to the Department by October 15, 2009, and may be accepted earlier.

More information about ENERGY STAR appliance rebate program will be available from your state's energy office.

What products could qualify for the rebates?

Each state and territory may select its own set of ENERGY STAR qualified products to rebate. DOE recommends the following appliances:

  • Boilers
  • Central air conditioners
  • Clothes washers
  • Dishwashers
  • Freezers
  • Furnaces (oil and gas)
  • Heat pumps (air source and geothermal)
  • Refrigerators
  • Room air conditioners
  • Water heaters

What are the rebate amounts?

Each state and territory will choose dollar amounts for the products selected. Amounts commonly offered range from $50 to $250, depending upon the product being purchased, the purchase price, and other potential market factors.

How do consumers apply for the rebates?

Some states may offer the rebate at the point of purchase—when consumers are actually purchasing the appliances. Other states may require consumers to mail in a paper form to request a check. There may be other ways, too, since each state will set up its own processing system.

More information about ENERGY STAR appliance rebate program will be available from your state's energy office.

How long will the rebate programs last?

The program will continue as long as the states and territories have money to support it. While they have until February 2012 to spend the money, it is likely that the money will go quickly. States and territories must indicate how they will notify consumers when the money is about to run out.

If there are other rebates or tax credits for the same products, will consumers qualify for this rebate program?

Yes. Federal tax credits and other financial incentives may be claimed for the same products, as long as they qualify under the rules of the programs and are not specifically excluded.

When will my state's program take effect?

Each state's and territory's program will likely have different effective dates. The energy office for each state and territory will be responsible for notifying its residents. Most likely, the rebate programs will take effect at the beginning of 2010, but some could be in effect by the end of 2009.

Will all of the states have a rebate program?

All 56 U.S. states and territories have submitted applications indicating they intend to submit proposals for state rebate programs. The DOE will know better on Oct. 15, when all of the proposals are due. We fully expect all states and territories to participate in the program.

How much will each state receive to fund its program?

To fund these rebates, each state will receive an amount proportionate to its population compared to the total U.S. population, with a floor of no less than $100,000. See the complete list of allocations by state (PDF 11 KB). Download Adobe Reader.

How much energy savings can I expect to achieve when I replace a used appliance with a new ENERGY STAR-qualified model?

Energy savings will depend on the specific appliance and model being replaced, but new ENERGY STAR appliances save significantly more energy than those manufactured years ago. For example, replacing a clothes washer made before 2000 with a new ENERGY STAR model can save up to $135 per year. Replacing a refrigerator made before 1993 with a new ENERGY STAR model can save up to $65 per year.

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