1 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Preliminary Findings from the

First Nationwide Appliance Rebate Program

November 16, 2010

State Energy Efficient Appliance

Rebate Program:

Status Report

2 | State Energy Efficient Appliance Rebate Program eere.energy.gov

State Energy Efficient Appliance Rebate Program

• American Recovery and Reinvestment Act of 2009

• $300 million stimulus program

• 56 states and territories

• Consumer rebates for replacement of old appliances with ENERGY STAR® qualified or better models

• Stimulus program. Not an efficiency program – not evaluated by cost-benefit tests

3 | State Energy Efficient Appliance Rebate Program eere.energy.gov

DOE Guiding Principles of Program

• Rebates for residential customers only

• Funds must be used for a rebate – no up-stream or

mid-stream buy-downs

• For replacement products only

• States could outsource management or partner with

utilities

• States could tailor program to meet their energy needs

4 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Appliances approved by DOE for rebates

• Clothes washers

• Dishwashers

• Refrigerators

• Freezers

• Water Heaters

• Room AC

• Central AC

• Heat pumps

• Furnaces

• Boilers

State could petition DOE

to add additional products

5 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Program Launch by Month

6 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Current Status of Programs

7 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Overview of State Rebates

8 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Overview of State Rebates

9 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Overview of State Rebates

10 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Program Status

Results through June 30, 2010:

– Data from 53 of 56 states

– Updated information will be collected with program closures

Total Rebate Funding

$296 million

2 million rebates

Paid to Consumers

$98 million

689 thousand rebates

11 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Program Results

12 | State Energy Efficient Appliance Rebate Program eere.energy.gov

SEEARP’s Leveraged Sales*

• Every $1 spent in rebates generated:

• $8.65 in sales

• $0.30 in state sales tax (estimated)

13 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Key Preliminary Findings

14 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Setting Appropriate Rebate Levels Can Be Challenging

• Too many variables between states to isolate and

assess impacts of SEEARP on consumer purchasing:

– Products and price points

– Rebate levels

– Interaction with existing programs

• Layered, higher tiered,

– Rebate period

– Processing system

• Mail-in, instant, voucher, reservations

15 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Experience matters

• States with existing programs were generally better

equipped to integrate SEEARP rebates

• States without previous or existing programs faced

additional startup delays

16 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Rebate Reservation and Purchasing Behavior

Intriguing Anecdotal Evidence

17 | State Energy Efficient Appliance Rebate Program eere.energy.gov

The Majority of Consumers Do Not Follow Through on Reservations

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

State A State B State C State D

3 hrs 5 daysFully booked within

Reservations Broken

18 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Do you have a reservation, sir?

Reservation type Breakage Backlash

• Prior, extended High Some

• Instant/point-of-sale None None

• Post-sale None None

• Short-lived reservation No data ?

19 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Coming Next Year

• Regression analysis of final data to answer questions

such as:

– What is the relationship between rebate level and sales lift?

– Are there optimal rebate levels for various products?

– What is the best way to balance a fixed budget, public

satisfaction, and the need to stimulate sales within a given

period?

20 | State Energy Efficient Appliance Rebate Program eere.energy.gov

For Further Information

• Lani Macrae, US DOE

Lani.MacRae@ee.doe.gov

202.586.9193

• Tobias Swope, D&R International, Ltd.

tswope@drintl.com

301.628.2048

• Chris Cloutier, D&R International, Ltd.

ccloutier@drintl.com

651.644.4017

21 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Appendices

• Product rebates by category

• Energy savings by product category

• Leveraged sales by product category

• Special progress report data

22 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Appliance Rebates

23 | State Energy Efficient Appliance Rebate Program eere.energy.gov

HVAC Rebates*

24 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Water Heater Rebates*

25 | State Energy Efficient Appliance Rebate Program eere.energy.gov

Energy Savings by Product Category*

26 | State Energy Efficient Appliance Rebate Program eere.energy.gov

What Data will be in the Final Rebate

Reports?

• State • Date application received

• Product type • Date rebate paid

• Product brand • Purchase price

• Sub-brand • Rebate amount

• Model number • ZIP code of delivery

• AHRI number • Replaced product removed

• SRCC number • Replaced product recycled

• Date of purchase • Additional recycling rebate