Just as the “Cash for Clunkers” program is winding down, news is out about the upcoming “Cash for Refrigerators” or “Cash for Appliances” program. Slated to begin this fall, a new $300 million federal program will provide rebates of $50 to $200 for purchases of high-efficiency household appliances.
Unlike the clunkers program, buyers will not have to trade in their old appliances. Appliances purchased under the program must bear the Energy Star seal to qualify for the rebates. Only about 55% of new appliances meet that standard.
The home appliance industry has been suffering a decline in sales since 2006, roughly coinciding with the decline in home sales. Sales were down 10% in 2008, and down 15% through the first half of July, according to the Association of Home Appliance Manufacturers.
While the program is expected to provide some boost in sales to the appliance industry, it is not expected to have the dramatic effect on sales that the Cash for Clunkers program provided to the automobile industry. Nonetheless, appliance manufacturers are welcoming the program and are expecting an increase in sales until the program ends around November 30.
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