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14 May, 2021

`Crush for credit` scheme will pay to scrap old motors

07 April, 2009

A US Senate committee has voted in favour of a measure that will give motor-users a $5-per-horsepower rebate for disposing of old, inefficient motors. The programme will also provide a $25-per-horspower rebate for purchasers of Nema Premium high-efficiency motors.

Once signed into law, the programme – known as “crush for credit” – will allows the US federal government to spend $350m to incentivise the widespread adoption of Nema Premium motors.

In March, the US Senate Energy and Natural Resources Committee adopted the proposal as an amendment to an energy bill that the Senate is drawing up. The programme, backed by the US National Electrical Manufacturers Association (Nema), is needed to offset the difference in price between old, inefficient motors that are cheap to repair, and new, more expensive, high-efficiency motors.

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