Here’s what you need to know about rebates on electric appliances.
What are rebates?
Rebates are payments from the U.S. Department of Energy for electricity purchased from an electric utility.
Rebates range from a couple dollars per kilowatt hour (kWh) to as much as $250 per kiloWatt (kW).
Here are some common rebate categories and their payment rates:Electric utility rebates can be used to offset the upfront costs of purchasing electricity.
For example, if an electric company offers rebates to homeowners, electric customers can receive rebates of up to 50% of the retail price of a new electric meter or the price of electricity used to generate that meter.
Rebate payments are not refundable.
The rebates are calculated based on the average cost of electricity to run the electric system.
The total value of the rebates is based on a utility’s annual average electricity usage.
The annual average cost includes depreciation and maintenance costs, and electricity usage is typically based on an average of one month per year.
Electric appliances can receive electricity rebates based on their specific characteristics.
Electric appliances with a lower energy efficiency (such as electric stoves) may receive rebays.
The electricity rebate applies only to electric systems that are purchased from the electric utility, not to electricity that is used to produce those systems.
Some types of electric appliances, such as refrigerators, can receive a rebate only if they meet certain energy efficiency requirements.
Rebated electricity will be used for refrigeration equipment that meets the energy efficiency standards of the federal government.
Rebates are paid monthly and are subject to state income tax and other rebates.
For more information on rebates, check out the rebate guide.
How do rebates work?
Rebate payment amounts vary depending on the type of electric appliance.
Electric utility rebate payments will be based on energy efficiency.
A new electric utility must meet the federal Energy Star program, which requires utilities to meet energy efficiency benchmarks and is the national standard.
Rebating is only available to new electric utilities and the price can be up to $250.
The amount is based off of the average energy use in the month prior to the month of the rebate payment.
The electricity rebate will be made available to the consumer through the utility’s website.
The rebate is usually issued at the time the consumer opens the account and is not paid when the electric bill is billed.
The utility will pay the rebated electricity back to the customer through the credit card used to purchase the electricity.
The credit card will then be used on the electric provider’s behalf to pay the electricity bill.
For electricity rebatements to be valid, the rebating utility must provide proof of eligibility for the rebate and proof of payment.
Rebate payments can be made online, by phone, or by mail.
Rebaters are not available for all electric products.
Some rebates will only be available to certain electric utilities.
The rebates may also be eligible for additional rebates from the Department of Commerce or the Department’s Rural Utilities Service.
For information on electricity rebated to electric appliances with lower energy efficiencies, check with the utility or contact your electric company.
How can I get more information about rebating?
Rebatements are available at the following public and private utilities:All U.N.R.E. (United Nations Region Electricity Efficiency) rebate programs include rebate rates and eligibility requirements for all eligible electric consumers.
Check the U,N.
Regional Electricity Rebate Program website for details.
For additional information on electric rebates and rebates by state, visit the U.,N.
How long does the rebatment last?
Rebating usually expires six months after the electric company has delivered the electric meter.
The utility can apply for an extension.
Rebatments for electric meters are scheduled for the next billing cycle.
The electric company must maintain a record of all rebated amounts for the current billing cycle for six months.
Rebats may be extended if the utility determines that rebates were made on a more frequent basis.
Rebating is available for up to one year from the date of the billing cycle and can be extended for up and one year to the end of the current calendar month.
Rebats may not be extended to a period longer than six months from the end date.
For rebatments made after the date the electric supplier has delivered a meter, the rebate will expire at the end that billing cycle, regardless of the amount of time remaining.
Rebations may be expanded by a consumer to a new electricity meter and/or equipment.