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The Standard Times - 2010-03-10

Massachusetts to offer rebates for 'clunker' appliances (new window)

By Brian Boyd
bboyd@s-t.com
March 10, 2010 12:00 AM

Consumers could save up to $250 this spring by ditching a creaky dishwasher or an aging refrigerator for newer, energy-efficient models.

Massachusetts will offer rebates on home appliances to residents through a stimulus-funded program, similar to the "cash for clunkers" initiative last year that encouraged people to get rid of old cars.

The new rebates will save consumers money on their purchases and their electricity bills, supporters say.

"It's a wonderful program," said George Macedo, owner of George's Appliance in New Bedford. "They're going to save money on energy at the same time they save money up front. They're going to win both ways."

The federal government is providing nearly $300 million in stimulus money for state-run rebate programs. Massachusetts received $6.2 million to pay for its version.

The state program will run from April 22, the 40th anniversary of Earth Day, through May 5. It will provide rebates from $50 to $250 to encourage people to replace their appliances with Energy Star-rated ones, which have met government standards for energy efficiency.

To receive a rebate, Bay State residents must buy one of the qualified products and turn in their old ones. The old appliances must be in working condition and cannot be reused after they are exchanged.

"Swapping electricity-guzzling refrigerators, freezers, clothes washers and dishwashers for super-efficient new ones will cut energy use across the state, saving consumers money on monthly utility bills for years to come, while protecting our environment through lower energy use," said Ian Bowles, the state's energy and environmental affairs secretary, in a statement.

Local appliance dealers said the program will encourage customers who have old models to buy new ones.

"I think it will spur a little business," said Manny DeMelo, owner of Appliance World in Fall River.

A family who has a dishwasher that is in fair condition is not likely to go buy a new one for the rebate, but people who have an aging machine could be inspired to take advantage of the program, DeMelo said.

The state estimates that the program will take 27,000 less-efficient appliances out of service.

That means Massachusetts residents will use 2.6 million fewer kilowatt hours of electricity each year, the equivalent of eliminating 4.3 million pounds of carbon dioxide and powering 340 households for one year, according to the state's announcement of the new program.

To participate, residents must place reservations and buy the appliances during the two weeks when the program is in effect. Officials will provide more information about the program in the coming weeks.

The state will post a searchable list of eligible appliance models and other details of the program, called the Mass Save Great Appliance Exchange, at masssave.com/GAX on March 22. The additional information will include rebate amounts for each appliance type.

The national program originally was approved in 2005 as an energy conservation measure, but it was never funded until the $787 billion federal stimulus package was passed last year. With the stimulus funding, the goal of boosting business was added to the original environmental intention, said Jill Notini, spokeswoman for Association of Home Appliance Manufacturers, a Washington, D.C.-based industry group.

The rebate program proved popular where it has already taken effect; Iowans used up their available rebates in a matter of hours, Notini said.

"That is good news for consumers who were able to upgrade to more efficient appliances, and it's certainly good news for the industry, since we had four years of negative shipments," she said.

Replacing a 10-year-old clothes washer with a new, efficient model can save a consumer $100 in utility costs and 5,000 gallons of water in a year, she said.

The Retailers Association of Massachusetts anticipates that Bay State customers also will respond to the rebates.

"We support the state program," said Bill Rennie, the association's vice president. "We promoted it to all of our members who sell appliance products in those categories, and we think anything the state or the federal government could do to encourage consumers to spend, to get them back out into the marketplace, is a good thing."

Appliance standards, whether they are promoted by rebates or enforced through legislation, can help protect the environment, said Ben Wright, energy advocate at Environment Massachusetts, an advocacy group.

"They cut our reliance on fossil fuels," Wright said. "They save consumers money, and they are one of the best tools we can use to actually start moving toward clean energy."