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Massachusetts’ appliance rebates expanded

Posted on 28. Apr, 2010 by GMS Editor in Featured, Newsflash, ShowOnLatestPanel

By Robert Preer
Boston Globe Correspondent / April 24, 2010

Responding to complaints from people unable to secure rebates for energy-efficient appliances this week, state officials yesterday promised to honor payouts for the nearly 13,000 consumers on a waiting list for vouchers, and said that a second round of discounts will be offered this summer.

Unlike this week’s rebate program, the new one will distribute money through a lottery or some other random process, officials said, not on a first-come, first-served basis. It will also use funds set aside for other energy-efficiency programs in Massachusetts, instead of the federal stimulus dollars spent on Thursday’s giveaway.

While declining to provide a specific amount for the summer program, officials said it will be comparable to this week’s $5.5 million offering.

The Earth Day promotion proved so popular that a state website set up to process applications crashed minutes after the program launched at 10 a.m., and the money was depleted in less than two hours. More than 26,000 people were able to log on and secure at least one rebate, but thousands of others were frustrated by error messages, and a special phone line was jammed. In addition, a second website set up to alleviate online pressure quickly stalled out. The state had said that its website was built in anticipation of heavy traffic.

The rebate frenzy may have been heightened by the amount of the give-backs relative to the appliances’ prices. After the $250 dishwasher rebate, for instance, some low-end models were selling for $20 or less in area stores. Other rebates included $200 for refrigerators, $175 for clothes washers, and $50 for freezers. Yesterday, officials indicated rebates may be less generous next time around.

With the word yesterday that all 12,731 people on the waiting list will get a rebate reservation, those consumers now can go ahead and purchase their appliances. The cost of the waiting list rebates alone is $2 million. Officials said some of it will likely come from an initial $5.5 million federal allocation, based on the assumption that some of the rebates already handed out Thursday will go unused.

To make up the difference and to fund the summer program, the state said it will tap the account of MassSave — a partnership involving the state, major utility companies, and energy contractors. It has $2 billion to spend over the next three years to promote energy conservation in the state, funded by a surcharge of about $1 to $2 on customers’ utility bills, as well as funds from utilities and power plant operators. Robert Keough, spokesman for the state Office of Energy and the Environment, said the agency considers the appliance rebates an effective use of MassSave money, and that it will not significantly detract from MassSave’s other offerings, including home insulation subsidies and energy audits

After buying an appliance that qualifies for a rebate — which must be done by May 5 — consumers should send the rebate form to the state, along with a copy of the receipt, a recent electric bill, and a document showing the old appliance was taken away and a new one installed. Depending on store policies, consumers may have to pay for delivery, installation, and removal of old appliances. They also must pay the state’s 6.25 percent sales tax on the price of appliances prior to the rebate.

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Tags: appliances, energy efficiency, rebates