Local retailers skeptical about appliance rebates

The federal government has announced it will make $300 million available to state energy offices for rebates on energy-efficient appliances. The money will be doled out by individual states, which will establish guidelines for the rebate.

The U.S. Department of Energy approved Arizona's initial application expressing intent to participate in the program Friday, said David Drennon, a spokesman for the Arizona Department of Commerce. The state is looking to get about $6.2 million of the cash, he said.

But local appliance retailers were guarded in their optimism about the benefits of such a rebate.

For one thing, it could take months before it goes into effect.

Arizona has until Oct. 15 to submit program details and a budget as part of the final application. Until that plan is approved, consumers won't see any savings, Drennon said.

That's what worries store owners who've been struggling to sell merchandise in a lagging economy.

"If they decide to have a rebate and they tell people to wait, it's going to kill us," said Chris Edwards, owner of Tucson Appliance Co. "We're not going to get any business."

Retailers also worried about paying for the rebate upfront.

Edwards also said if the rebate isn't enough, it won't provide much incentive for a customer to buy. He's heard some estimates of rebates between $30 and $200, and that might not be enough to sell items like refrigerators that can cost up to $2,000.

Tucson Appliance has already had to offer deep discounts to move merchandise, Edwards said, and sales are still slow.

The details of Arizona's rebate program still have to be approved by the Department of Energy, but Drennon said it will likely include a tiered system that grants greater savings for the more energy-efficient washers, dryers and refrigerators. The program will likely be active by the holidays, he said.

Doug Betts, the owner of Christie's Appliance, also had worries about the in-between time until the rebate goes into effect.

"My concern is that people are going to wait around — and then we'll be real busy — and then nobody is around after that," Betts said.

The program could benefit the environment as older water-wasting washers and dishwashers get taken out of use, Betts said.

Anything with potential to stimulate traffic in appliance showrooms could be a good thing for his business in this hard-hit economy, he said.

Appliance sales in the county have been down significantly, Betts said. Christie's Appliance has increased advertising and, like other appliance retailers, offered substantial discounts on products, but sales are still slow.

"It's tough," Betts said. "It's as tough as it's been in my 26 years."

By the numbers:

Appliance rebate

$300 million

Total federal funds available nationwide

$6.2 million

Funds allocated to Arizona

$623,700

Money received so far in Arizona

Next step

The Arizona Department of Commerce Energy Office is currently developing program details and a budget. The final application is due Oct. 15.