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By the Numbers: When it comes to pace of rebates, cash for appliances has seen mixed results

Consumer Reports News: June 25, 2010 12:40 PM

$108 million


Amount of the rebates distributed so far to consumers nationwide through the U.S. Department of Energy's $300 million cash for appliances rebate program, which kicked off in late 2009 and continues in 32 states and U.S. territories. Tennessee's program will  begin no later than July 14. The District of Columbia and Nebraska will also launch theirs in July. Guam's program was supposed to start in late May, but its status is unclear.

Some states zipped through their cash for appliances allotment. It seems that the cash for appliances program has been more successful in states that provided point-of-purchase rebates, such as Illinois, North Carolina, and South Carolina, as rather than mail-in ones.

But the rebate activity has been sluggish in others, epitomized by the slow pace in California. That state's cash for appliance program, run by the California Energy Commission, received $35.2 million for rebates on air conditioners (up to a $50 rebate), refrigerators ($200), and washing machines ($100). But as of this morning—more than two months after the program started—almost $23 million remains State officials hope summer heat will spur demand for rebated room air conditioners. Read more on California's cash for appliances in this article in the Los Angeles Daily News.

From the appliance-industry perspective, cash for appliances is having an impact. Year-over-year appliance shipments rose 20 percent in April 2010, according to the Association of Home Appliance Manufacturers. And the NPD Group, a market-research company, reports that sales of major appliances generated double-digit dollar and unit growth of 16 and 12 percent, respectively, from January to May 2010 compared with the same period a year earlier.

The appliance industry is lobbying Congress for an extension of cash for appliances and would prefer the program to be managed on a national scale as opposed to the current state-by-state basis. "We've told the Senate Energy Committee that the program could be even more productive if it was not run separately by 50 states with 50 sets of criteria," says Joseph M. McGuire, president of AHAM. "A national program would allow manufacturers and retailers to leverage their promotions and marketing resources more effectively."

Daniel DiClerico

Essential information: Check out our cash for appliances buyer's guides to air conditioners, dishwashers, refrigerators, washing machines, and water heaters and find the best places to buy appliances. To stay on top of the latest cash for clunkers for appliances news, follow us at Twitter.com/CRHomegarden.

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