NY GEO INCENTIVES & FINANCING

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: $36,500

 
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 (26%)   

Example: Credits & Incentives

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

System Cost $36,500
Utility Rebate (Waterfurnace 7-Series)
Like cash off; goes directly to system builder upon completion
-$7,650
Geotherm Inc. Project Discount
Discount offered for paying with cash or NYSERDA Smart Energy loan
-$3,000
Geotherm Summer 2020 Discount
Discount offered for those who sign a contract by 9/20/2020
-$850
Contract Cost $25,000
26% Federal Tax Credit
Based on contract cost
($25,000 + x .26); deduction from federal tax bill for year paid
-$6,500
Effective Total Cost $18,500
System Cost $36,500
Utility Rebate (Waterfurnace 7-Series)
Like cash off; goes directly to system builder upon completion
-$7,650
Geotherm Inc. Project Discount
Discount offered for paying with cash or NYSERDA Smart Energy loan
-$3,000
Geotherm Summer 2020 Discount
Discount offered for those who sign a contract by 9/20/2020
-$850
Contract Cost $25,000
26% Federal Tax Credit
Based on contract cost
($25,000 + x .26); deduction from federal tax bill for year paid
-$6,500
Effective Total Cost $18,500

 

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.
  • EnerBank Geo Reduced Interest Financing (0% on Tax Credit portion, 4.99% – 6.99% on remainder, depending on terms.) Includes 12 month same as cash bridge loan for tax credits.

Example: Financing Options

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

Option #1: Smart Energy Loan Option #2: EnerBank
Contract cost: $25,000 Contract cost: $28,000
Smart Energy loan: -$25,000
15 year loan @ 3.49%

EnerBank: -$7,280
12 month, Same as Cash tax credit loan

EnerBank: -$20,720
20 year @ 4.99% loan

Total out of pocket: $0 Total out of pocket: $0
Monthly Cost: $179.00 Monthly Cost: $137.00
Option #1: Smart Energy Loan Option #2: EnerBank
Contract cost: $25,000 Contract cost: $28,000
Smart Energy loan: -$25,000
15 year loan @ 3.49%

EnerBank: -$7,280
12 month, Same as Cash tax credit loan

EnerBank: -$20,720
20 year @ 4.99% loan

Total out of pocket: $0 Total out of pocket: $0
Monthly Cost: $179.00 Monthly Cost: $137.00

 

 

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