State gears up for beginning of appliance rebate program

By ELISA SAND, Staff Reporter

Appliance companies are gearing up for customer frenzy this week as the state's appliance rebate program becomes available.

South Dakota was awarded $772,000 in federal funds last year to be used toward the implementation of an appliance rebate program. Since that time, state officials have set the parameters of the program, which began Monday.

Mike Mueller, spokesman for the South Dakota Energy Efficient Appliance Rebate Program, said the federal allocation for the stimulus-funded program was based on the state's population. Guidelines set by the U.S. Department of Energy must be met.

The state program offers rebates on the purchase of new Energy Star rated appliances in the amount of $75 for dishwashers, $100 for freezers and washing machines, $150 for refrigerators and $125 for water heaters.

"Rebates are first-come, first-serve. Once the funding is gone, no more rebates will be issued," Mueller said.

The goal of the program is to encourage customers to replace their existing appliances with energy-efficient models that will utilize less energy. For refrigerator and freezer purchases, customers are also required to show proof of disposal for the old appliance on their rebate application.

Mueller said some companies will dispose of appliances for customers, and a representative can sign the application. Customers can also bring their appliances to a recycling/salvage company and obtain proof there.

To qualify for the rebate, Mueller said, the appliance must be purchased on or after March 1 and must meet specific Energy Star qualifications.

"Retailers are very familiar with those appliances," he said.

How long the funding will last, he said, remains a mystery. Mueller's office has calculated that anywhere between 5,000 and 7,000 rebates will be issued through this program. His office is aware, however, that demand for appliances is currently building in anticipation of the rebate program's availability.

"Customers were waiting for March 1 to purchase appliances and take advantage of the rebate," he said. "Our heaviest volume will come in the initial weeks."

Denise Fjerstad and Larry French, owners of LakeBrook in Madison, said they have several customers who have already pre-selected the appliances they plan to purchase this week.

"The response has been overwhelming," Fjerstad said. "It's amazing the number of people who were just waiting for Monday."

While Fjerstad said she thinks the rebate program may be available for a while, French feels the program's availability may be short-term.

"My opinion is that it will go very fast," he said. "It would behoove people if they want to do something to get it done quickly."

All appliances currently on display at LakeBrook are Energy Star appliances that qualify for the program, Fjerstad said.

The state program is not the only option available for customers. Federal tax incentives are available for both 2009 and 2010 tax returns.

That credit allows taxpayers to recoup 30 percent of the cost for certain Energy Star appliances and energy-efficient home improvements. The maximum credit allowed is $1,500 per household, which is cumulative over the two-year period.

Other rebate programs are available. Locally, Sioux Valley Energy launched an appliance rebate program which has been available since January.

The program offers rebates in the amount of $100 for refrigerators and freezers, $50 for dishwashers and $50 for clothes washers. This program also requires proof of disposal for refrigerators and freezers.

Carrie Law, SVE director of public relations and government relations, said the SVE board approved the rebate program for the 2010 calendar year, but the availability of SVE rebates will also depend on available funds since a set amount was budgeted for the program.

Law said this program came about through efforts in Minnesota to implement programs that encourage energy conservation.

"We decided to launch a rebate program, and the board of directors decided to expand it to South Dakota and Minnesota customers," she said. "We do feel it will help with energy savings."

Law said this rebate program isn't the first customer rebate for SVE customers. Other programs are already in place that offer rebates toward weatherization improvements and the purchase of air-to-air heat pumps or geothermal heat pumps. Customers can also get water heater rebates that are based on the capacity of the water heater.

Mueller said the state determined the credit level to account for the cost differential between Energy Star and non-Energy Star appliances.

More information about the state program is available at appliancerebate.sd.gov.

©Madison Daily Leader 2010