A New Air Conditioner? Ask the Government

How will the program affect utility-company reimbursements?

Utility companies in 22 states offer customers rebates for buying certain energy-efficient home appliances. For example, right now, customers of Rocky Mountain Power in Salt Lake City, Utah, can get up to $75 back when they buy a qualifying Energy Star clothes washer, while customers of Clark Public Utilities in Washington can get a $25 rebate for buying Energy Star refrigerators and $50 for clothes washers.

It’s not yet known if consumers will be able to combine state rebates with existing rebates offered by local utilities. The DOE’s guidelines require states to take into account existing tax credits and state and utility rebates when setting rebate amounts. “The DOE probably doesn’t want double dipping,” Nadler says.

Consumers can search for current utility rebates by zip code on the DOE’s web site. To find out if your state or local utility offers tax incentives or rebates for buying energy-efficient appliances, check the Database of State Incentives for Renewables & Efficiency. Both sites will track changes in rebate programs as details are developed by each state.

(For more information on tax credits for making home improvements, such as adding insulation, read our story.)

What about recycling old appliances?

Consumers can check with their local utilities about what type of appliance recycling programs they offer and whether they offer rebates. For instance, Southern Minnesota Municipal Power Agency offers customers $50 for recycling their old refrigerators and freezers and $25 for bringing in their room air conditioners.

When should you replace an old appliance? Energy Star’s rough guideline says to unplug it if it’s more than 15 years old; efficiency standards have improved significantly since the early 1990s. “Those energy savings alone are going to make getting a new one worth it,” says Maria Vargas, a spokeswoman for the Energy Star program. Also consider a purchase if you use a particular appliance a lot – say, a clothes washer for a family of six.

What other kinds of retail incentives are available?

As the government sorts out the rebate program with the states, some national retailers have begun to offer consumers their own financial incentives in the spirit of "cash for clunkers."

Toys “R” Us announced a plan Wednesday that allows consumers to trade in their used cribs, car seats, high chairs and other baby-related items – products that “are not the best candidates to be handed down or resold” – for a 20% discount on a new product in the same category and by specific manufacturers. The “Great Trade-In” program begins Aug. 28 and is scheduled to last through Sept. 20.

High-end clothier Barneys is holding a similar promotion this month that offers shoppers a 20% discount on a new pair of jeans when they bring in an old pair. The offer ends Aug. 31.