Who can forget the surge of car-buying prompted by Cash For Clunkers last year?  Modeled after the same format, the federal government is set to begin the federal appliance rebate program in early 2010. Whether you are ready to buy a washer, a refrigerator or another home appliance, pay attention to the Energy Star labels of anything you are considering purchasing.  

Every state has a different program.  California residents, can get cash back on three types of appliances (washing machines, refrigerators and room air conditioners).  Wisconsin residents, on the other hand, have refunds for geothermal heat pumps, freezers, and dishwashers.  For state-by-state information, visit the federal website https://energysavers.gov and click on "State Appliance Rebate Program" (on the right). 

To understand whether a new purchase makes sense, you have to do the math:  Replacing a 10-year old washer, for example, with an Energy Star machine means you could reduce your utility costs by $145 a year and save 5,000 gallons of water a year as well.  At that rate, a typical $500-$700 washer would pay for itself in four years.  In large households, where the usage for power and water might be more, the payoff would come even sooner.

Just because rebates are offered doesn't mean its a good idea for everyone. Appliances less than 5-7 years old are already more energy efficient.  But if you are considering replacing a 20-year-old refrigerator (which uses 3 times as much power as an Energy Star-approved unit) the savings over 5 years could be $1,200!

When will the rebates end?  They will be available until February 2012 or until the money is gone.  And according to Jen Stutsman, a spokesman for the Energy Department, the funds will probably run out fast!