FINANCING ALTERNATIVE ENERGY PROJECTS

There are a variety of ways to reduce the out-of-pocket contribution and finance the cash required. Below we explain available NY geo incentives and financing options, and apply each to a real-life example:

NY Solar Incentives & Financing
NY Solar Incentives & Financing

 

Example: Geotherm Premier System

The most efficient water to air system, and our recommended choice. With the standard 5-Ton Waterfurnace
7-series pump it can provide full heating and AC for most 2,000 – 3,500 sq.ft houses.

Total System Cost: $38,000

Below we will show how the current discounts and credits will greatly reduce this cost.


 

Credits and Incentives

By taking advantage of government incentives and tax credits a geothermal system for your home is a solid financial investment. Payback periods are short, return on investment high and you fix your energy costs well into the future. There are two levels to these as follows:

  1. Geothermal Utility Rebate (Dependent on system size and type)
  2. Federal Tax Credit (30%)

Example: Credits & Incentives

Here’s how the federal and NY geo incentives and tax credits play out using the example above:

System Cost $38,000
Utility Rebate (Waterfurnace 7-Series)
Like cash off; goes directly to system builder upon completion
-$7,755
Geotherm Inc. Project Discount
Discount available for self-funded projects
-$2,500
Geotherm Fall 2022 Discount
Discount offered for those who sign a contract by 11/20/2022
-$500
Contract Cost $27,245
30% Federal Tax Credit
Based on contract cost
($27,245 x .30); deduction from federal tax bill for year paid
-$8,174
Effective Total Cost $19,071
System Cost $38,000
Utility Rebate (Waterfurnace 7-Series)
Like cash off; goes directly to system builder upon completion
-$7,755
Geotherm Inc. Project Discount
Discount available for self-funded projects
-$2,500
Geotherm Fall 2022 Discount
Discount offered for those who sign a contract by 11/20/2022
-$500
Contract Cost $27,245
30% Federal Tax Credit
Based on contract cost
($27,245 x .30); deduction from federal tax bill for year paid
-$8,174
Effective Total Cost $19,071

 

Financing Options

Installing a geothermal system is a smart investment—but it must make sense financially for your family. These financing options :

  • NYSERDA Smart Energy Loan (Currently 3.49%) 15 year loan can cover up to $25,000 of total system cost. Additionally, NYSERDA offers a Companion loan to cover any remaining costs at 6.49%.
  • Clean Energy Credit Union Geothermal System Loans (5.74% on Tax Credit portion, 5.74% – 6.24% on remainder, depending on terms.) Includes 18 month short-term loan for tax credits.

Example: Financing Options

Here’s how these options break down using the example above:

Option #1: Smart Energy Loan Option #1: Companion Loan Option #2: Clean Energy Credit Union
Contract cost: $27,245 Contract cost: $27,245 Contract cost: $27,245
Smart Energy loan: -$25,000
15 year loan @ 3.49%
Smart Energy loan: -$25,000
15 year loan @ 3.49%

Companion Loan: -$2,245
15 year @ 6.49% loan
Clean Energy Credit Union: -$8,174
12 month, Short-term tax credit loan

Clean Energy Credit Union: -$19,071
15 year @ 5.99% loan
Total out of pocket: $2,245 Total out of pocket: $0 Total out of pocket: $0
Monthly Cost: $179.00 Monthly Cost: $198.00 Monthly Cost: $160.83
Option #1: Smart Energy Loan Option #2: Clean Energy Credit Union
Contract cost:
$27,245
Contract cost:
$27,245
Smart Energy loan: -$25,000
15 year loan @ 3.49%
Clean Energy Credit Union: -$8,174
12 month, tax credit loan

Clean Energy Credit Union: -$19,071
15 year @ 5.99% loan
Total out of pocket:
$2,245
Total out of pocket:
$0
Monthly Cost:
$179.00
Monthly Cost:
$160.83

 


 

Combo Loan
Smart Energy Loan

Combo Loan

Smart Energy Loan

 

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