News

12/11/2009

Ky., Ind. appliance rebate plans approved

By Jere Downs
jdowns@courier-journal.com

Kentuckians and Hoosiers replacing their appliances with energy-efficient models next year will be able to claim hundreds of dollars in federal rebates under plans recently approved by the U.S. Department of Energy.

Part of the federal economic stimulus effort, states were left to tailor the appliance rebates to their own situations. Indiana, for example, chose to limit the rebates to home heating and air conditioning systems. Hoosiers will be able to get back $300 to $500 on purchases of those items made after Jan. 31.

In Kentucky and most other states, rebates will be available for more appliances. Kentucky’s biggest rebates — $300 to $400 — will be available for efficient gas furnaces and geothermal heat pumps. The state plans to start its program in March or April.

And while a few hundred dollars off on a geothermal heat pump that might cost $14,000 or more may not sound like much, consumers can double or even triple those savings by taking advantage of offers from utilities and energy efficiency tax credit programs.

In Kentucky, consumers can collect a state tax deduction of up to $250 per item for energy-efficient items such as water heaters, heat pumps and air conditioners — on top of the stimulus rebate. Another Kentucky tax deduction is allowed for purchases of up to $500 for solar water heating systems and up to $250 for geothermal heating systems.

Vectren, the Southern Indiana gas utility, offers a $200 rebate for new, efficient gas furnaces. In addition, the federal Energy Efficiency Tax Credit can lower income-tax bills by up to $1,500 for those who install qualifying residential water heaters, furnaces, heat pumps, air conditioners and more during this year and next.

“All of a sudden, you are getting into real money,” said Eric Burch, spokesman for the Indiana Office of Energy & Defense Development. “You are making it possible for people who could not pull the trigger on a new furnace can maybe pull it now.”

Getting rid of clunkers

Similar to the popular Cash for Clunkers auto trade-in program earlier this year, the appliance rebates are aimed at eliminating inefficient machines.

Consumers in Indiana and Kentucky will have to sign a form confirming the purchase is for replacement of an existing appliance, and that the old appliance will no longer be used. They won’t, however, be required to haul the old machine to the store, as was the case with the auto program.

“I cannot say we will have appliance police go out and check everybody,” Greg Guess, director of Conservation at the Ky. Department for Energy Development & Independence, said of the requirement that old appliances not stay in use. “I can say we will have some sort of self certification that the appliance being purchased will replace an old one.”Kentuckians will be responsible for recycling their old appliances, and solid waste coordinators in each county are coordinating how to collect them, Guess said. Of particular concern is that residents arrange for proper disposal of Freon and other coolants harmful to the atmosphere, from old refrigerators and air conditioning systems.

Exact details on how the Indiana and Kentucky programs will run remain sketchy, pending the programs’ formal launch. Still unclear, for example, is whether a Kentucky resident can purchase an appliance in Indiana and qualify for the rebate in either state.

The lack of any money to collect old appliances was one reason Indiana limited its program to heating and air conditioning systems that are typically impractical to be reused.

“If you don’t recycle that old refrigerator, it is just going out in the garage to hold beer,” said Eric Burch, spokesman for the Indiana Office of Energy & Defense Development.

Plus, furnace and air conditioning systems are “one place where you can impact your electric bill and gas bill in one fell swoop,” Burch said. “This is the place to have maximum impact.”

Indiana has federal approval for $6 million worth of rebates.

In all, Kentucky received federal approval to distribute $4 million to homeowners. Other appliances that will be eligible for the rebates include tankless gas water heaters, $300; Energy Star-rated dishwashers and refrigerators, $50; and clothes washers, $100.

Dishwasher shoppers at Charlie Wilson’s Appliance Co. in Louisville on Thursday said the prospect of the rebate wasn’t enough to make them put off their purchase until the spring.

“I have an empty hole in my counter,” said Perry Martin of southwestern Jefferson County. He said he removed his old dishwasher to do plumbing and repair work and is replacing it because it’s old.

Betty Jones of New Albany, Ind., was shopping for a dishwasher for a Christmas gift for her son but said she might consider giving him cash so he could wait to buy later, and claim the rebate.

Had Burdick said he and his wife need to replace a 23-year-old dishwasher and were more interested in matching the unique 18-inch space in their cabinets than finding a particularly efficient model.

Otherwise, “we would be interested — not just in the rebate, but in … something that’s energy-efficient,” said Burdick’s wife, Dona O’Sullivan.

Rebate forms will be available at retailers and state web sites to submit after the purchase, officials say. Kentucky is still seeking a third-party company to process rebate forms and detect fraud, Guess said.

In all, Kentucky expects 23,000 appliance and home heating and air conditioning sales that will qualify for the program, he said.

“I don’t think the program will stimulate much demand. It is not like Cash for Clunkers, where the amount of money available induced people to buy a new car,” Guess said.

Reporter Jere Downs can be reached at (502) 582-4669. Reporter Patrick Howington contributed to this report.

Additional Facts

Eligible appliances

Indiana

Rebates are limited to home heating and air conditioning systems and range from $300 to $500. Purchases must be made after Jan. 31.

Details are available at www.in.gov/oed.

Kentucky

As much as $300 to $400 will be available for efficient gas furnaces and geothermal heat pumps.

Other eligible appliances will include: tankless gas water heaters, $300 rebate; Energy Star-rated dishwashers and refrigerators, $50; and clothes washers, $100.

The Kentucky program start date has yet to be set, but is planned for March or April. Whether rebates will be retroactive to purchases made before the start of the program has yet to be determined.

Details will be posted at www.energy.ky.gov.

Kentucky Approved for Appliance Rebate Program to Start Spring 2010

http://www.energy.ky.gov/recovery/rebate/

The Kentucky Department for Energy Development and Independence has received funding from the U.S. Department of Energy for a State Energy Efficient Appliance Rebate Program.  DEDI expects the program to begin in the spring of 2010.

Press Announcements

Appliance Rebate Press Release

FAQ

Appliance Rebate FAQ

What appliances will be covered and what are the rebate amounts?

Product	Rebate	Eligible Models
Clothes washers	$100	View
Dishwashers	$50	View
Refrigerators	$50	View
Freezers	$50	View
Room air conditioners	$40	View
Gas condensing water heaters	$200	View
Electric heat pump water heaters	$400	View
Hi-efficiency gas storage water heaters (EF>=0.62)	$50	View
Hi-performance gas storage water heater (EF>=0.67)	$100	View
Gas tankless water heater	$300	View
Solar water heaters (electric back up)	$400	View
Solar water heater (gas back up)	$400	View
Central air conditioners	$100	View
Air source heat pumps	$400	View
Geothermal heat pumps	$400	View
Gas furnaces	$300	View
Gas boilers	$200	View

*If just one household purchased each of these appliances the impact would be the equivalent of taking

17 cars off the road for a year and planting 20 acres of forest. Please visit: http://www.energystar.gov

for ENERGY STAR savings calculators by product and see how you will reduce your home energy costs.

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