Cash for Refrigerators – the Green Stimulus

Steven Chu, the Secretary of Energy

Cash for Refrigerators is a cash for clunkers type scheme to boost sales of green or energy efficient home appliances that will authorize rebates of $50 to $200. Media has named it as “Cash for Refrigerators” but the rebate also applies to other appliances,including washer/dryers, which consume a huge energy.

The Cash for Refrigerators and Appliances plan is going to be funded by the Energy Department. The purpose of program is to get people to move to more energy efficient appliances. Steven Chu, the Secretary of Energy, will oversee the program which will run about $300 million. But that is a lot less than the $2 to 3 billion that the Cash for Clunkers program cost you.

“These rebates will help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy,” Energy Secretary Steven Chu

Many say that $50 to $200 is not much (especially when compared to $4500 the government was offering for old cars in the Cash for Clunkers program) but if you consider that old appliances usually can’t be sold for anything so you will be actually getting something for nothing. The payments will be rebates to purchase new appliances.

Do you think such programs will actually help making planet green or helping economy come out of recession? Why tax payers money is wasted – ask many critics. What is your opinion – write in the comments below.