The Association of Home Appliance Manufacturers (AHAM) credited the State Energy Efficient Appliance Rebate Programs (SEEARP) funded through the American Recovery and Reinvestment Act with delivering the promised benefits of stimulating economic activity. The program has been successful in encouraging U.S. consumers to purchase Energy Star appliances, according to the association, but its modest funding and complicated rollout limited its effectiveness in saving consumers energy and money.

Many AHAM members have pointed to a significant increase in demand for Energy Star appliances included in the rebate program. AHAM’s April factory shipment report showed a nearly 20% increase in shipments of major home appliances compared to April 2009. Year-to-date shipments of core appliances were up 9.1% following four consecutive years of declines.

Major retailers have confirmed that the rebate program has helped bring consumers back into stores. While the $300 million funding for the rebate program was significantly less than other stimulus programs, the return of consumers to stores also helped stimulate the purchase of goods other than appliances. The U.S. Department of Energy (DOE) estimated that $1.3 billion in consumer spending would result from the rebates being offered on home appliances alone.

“The state rebate programs, also known as ‘Cash for Appliances,’ have had a measurable, positive impact on the appliance industry,” said Joseph M. McGuire, AHAM president. “People who were sitting on the fence deciding whether to repair or replace their appliance were offered a compelling incentive to purchase a new energy efficient product. Not only did the rebate serve as an initial discount on the product, but the new product will offer consumers years of energy and utility savings.”

AHAM’s assessment of the SEEARP program is that it has been a success but its modest funding and complicated rollout limited its effectiveness in saving consumers energy and money and stimulating economic activity.

“The program contributed to increased demand for energy-efficient appliances, which in turn had a positive impact on jobs related to appliance manufacturing and sales,” said McGuire. “However, the limited funding and complicated rollout of the programs limited its effectiveness. We encourage Congress to renew the program, but with additional funding and process improvements to expand its ability to save energy and jobs.”

AHAM also recommends a single, national rebate program instead of 50 separate state programs, each requiring separate DOE approval and related administrative costs. A consistent nationwide program would make it easier for manufacturers to partner with retailers to develop promotional campaigns to make consumers aware of the rebates, according to AHAM.

The association also said that in states that used the reservation system for rebates, funding seemed to have been allocated more smoothly and more quickly. Allowing consumers to receive the rebate up-front or at the time of purchase seems to be a greater incentive than a mail-in procedure.