Buying a new appliance? Rebate program begins today

Perhaps your water heater was damaged during the November nor'easter.

Maybe you've eyed a new water-saving washing machine to replace an old one.

Or, if you have an outdated heat pump, you might have considered swapping it for a model that uses less energy.

For any of these appliance purchases, you could get some money back from the federal government.

Starting today, Virginia will launch its version of the Energy Efficient Appliance Rebate Program, funded through the federal stimulus package.

For a new electric heat pump, consumers can get $300 back. Those who buy a washing machine can receive a $75 rebate. Purchases of energy-saving gas furnaces, water heaters and refrigerators also qualify for cash. All appliances must meet federal Energy Star standards for efficiency.

Consumers who want one of the rebates should act fast. If other states' experiences and prior rebate programs in Virginia are any indication, the cash for appliances will run out quickly.

Texas gave out all of its appliance rebates in several hours. Consumers in Illinois used up that state's funding in one day. In Rhode Island, the money was gone in two days.

Virginia received $7.45 million for its program, overseen by the state Department of Mines, Minerals and Energy. The department expects the funding to provide 41,398 rebates.

"We are really hoping we will not have all the rebates claimed in one or two days, as has happened in other states," said Al Christopher, director of the department's energy division. "There is a huge amount of interest in appliance rebate programs."

Starting at 11 a.m. Wednesday, consumers can reserve a rebate on the department's website. The department will take reservations online only and will approve applications in the order they are received.

"I think it would be prudent for an applicant to assume it would be sold out very fast," Christopher said. "It is not a lot of money when you think about the demand."

Once the rebate is reserved, the consumer has 60 days to purchase the appliance, then must provide documentation to the state to claim the money. The department processes the redemption forms and mails the rebate check, which can take an additional six to eight weeks, Christopher said.

The department will start a wait list once the reservations deplete the available funds. Money left over from unredeemed reservations will trickle down to those on the list.

"We will not let it grow so huge that it will be hopeless," Christopher said of the wait list.

 For natural gas appliances such as furnaces and water heaters, Hampton Roads consumers didn't have to wait until today to apply for rebates.

Virginia Natural Gas and Columbia Gas of Virginia, the natural gas providers in the region, have their own rebate programs for energy-efficient gas appliances and will use the federal funds to supplement and extend them to more customers.

The state's cash-for-appliances website will direct VNG and Columbia Gas customers to their sites to apply for rebates.

In January 2009, VNG began offering rebates of $500 for a high-efficiency furnace, $500 for a tankless water heater and $150 for a tank water heater.

Columbia Gas' rebates, which began in January, are $300 for a furnace, $300 for a tankless water heater and $50 for a tank water heater.

Consumers won't get the federal money in addition to the companies' rebates. The utilities chose to use the money to subsidize their programs, stretching those dollars to more consumers.

Unlike the state, the companies accept no reservations for rebates. Their applications require customers to buy and install the equipment and provide documentation before they can receive any money.

Even with the federal funding, the gas companies' rebates are limited. State regulators approved 569 rebates for VNG's program each year for three years, said Cathie J. France, the company's director of governmental relations. The federal money will extend the number of VNG rebates by as much as 50 percent, and the company is seeking state approval to add more money to its own program, France said.

Last year, the 196 rebates for furnaces were gone by July. The demand surprised VNG officials.

"People just don't get a new furnace like they get a new car," France said. "Typically, a furnace lasts 15 years."

With the swell of interest generated by the federal cash-for-appliances program, the gas companies are likely to burn through their rebates faster than they otherwise would.

"We think it'll give us a boost," said Bob Innes, a Columbia Gas spokesman. "We're ramping up to make sure that we're ready."

 The American Recovery and Reinvestment Act included about $300 million for the appliance rebates, distributed to states based on population. Each state decided which appliances to cover, the rebate amounts and how the process works.

In Virginia, officials weighted the funds toward the equipment that sucks the most energy in a home, Christopher said. Electric heat pumps and air conditioners consume the greatest amount, then furnaces, then water heaters.

The state added smaller rebates for washing machines and refrigerators because some consumers can't afford to replace the pricier heating appliances but still want to take steps to conserve energy in their homes, he said.

In conjunction with the federal program, many appliance manufacturers are offering rebates on Energy Star appliances, said Rob Nicholson, president of East Coast Appliance & Electronics. He plans to run a sale, with discounts of 20 percent on high-efficiency items, at East Coast's four Hampton Roads stores.

The Home Depot also is taking 10 percent off appliances priced $398 or more to coincide with the federal rebates, said Craig Fishel, a spokesman for the Atlanta-based home-improvement chain.

"There's going to be some incredible prices for appliances," Nicholson said. "It's probably one of the best times you'll ever see."

Virginia limits the rebates to one item per household.

VNG and Columbia Gas customers, though, can reserve a $60 rebate for a refrigerator through the federal program and still seek a rebate for a gas furnace or water heater through their gas company's program.

Other than the gas equipment rebates provided through those companies, no appliances bought before 11 a.m. Wednesday will qualify for a federal rebate, Christopher said.

"You don't need to stimulate an activity that has already occurred."

Carolyn Shapiro, (757) 446-2270, carolyn.shapiro@pilotonline.com