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: $37,000

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 (26%)

Example: Credits & Incentives

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

System Cost $37,000
Utility Rebate (Waterfurnace 7-Series)
Like cash off; goes directly to system builder upon completion
-$7,650
Geotherm Inc. Project Discount
Discount available for self-funded projects
-$2,500
Geotherm Winter 2021 Discount
Discount offered for those who sign a contract by 03/20/2021
-$500
Contract Cost $26,350
26% Federal Tax Credit
Based on contract cost
($26,350 x .26); deduction from federal tax bill for year paid
-$6,851
Effective Total Cost $19,499
System Cost $37,000
Utility Rebate (Waterfurnace 7-Series)
Like cash off; goes directly to system builder upon completion
-$7,650
Geotherm Inc. Project Discount
Discount available for self-funded projects
-$2,500
Geotherm Covid-19 Relief Discount
Discount offered for those who sign a contract by 12/20/2020
-$500
Contract Cost $26,350
26% Federal Tax Credit
Based on contract cost
($25,000 x .26); deduction from federal tax bill for year paid
-$6,851
Effective Total Cost $19,499

 

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%.
  • 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 #1: Companion Loan Option #2: EnerBank
Contract cost: $26,350 Contract cost: $26,350 Contract cost: $28,850
Smart Energy loan: -$25,000
15 year loan @ 3.49%
Smart Energy loan: -$25,000
15 year loan @ 3.49%Companion Loan: -$1,350
15 year @ 6.49% loan
EnerBank: -$7,501
12 month, Same as Cash tax credit loanEnerBank: -$21,349
20 year @ 4.99% loan
Total out of pocket: $1,350 Total out of pocket: $0 Total out of pocket: $0
Monthly Cost: $179.00 Monthly Cost: $187.00 Monthly Cost: $141.00
Option #1: Smart Energy Loan Option #2: EnerBank
Contract cost: $26,350 Contract cost: $28,850
Smart Energy loan: -$25,000
15 year loan @ 3.49%
EnerBank: -$7,501
12 month, Same as Cash tax credit loanEnerBank: -$21,349
20 year @ 4.99% loan
Total out of pocket: $1,350 Total out of pocket: $0
Monthly Cost: $179.00 Monthly Cost: $141.00

 


 

Combo Loan
Smart Energy Loan

* Loans provided by EnerBank USA, Member FDIC, (1245 Brickyard Rd., Suite 600, Salt Lake City, UT 84106) on approved credit. Same-As-Cash Loan – repayment terms vary from 24 to 132 months. Interest waived if repaid in 365 days. 4.99% fixed APR, subject to change. Interest starts accruing when the loan closes.

Combo Loan

* Loans provided by EnerBank USA, Member FDIC, (1245 Brickyard Rd., Suite 600, Salt Lake City, UT 84106) on approved credit. Same-As-Cash Loan – repayment terms vary from 24 to 132 months. Interest waived if repaid in 365 days. 4.99% fixed APR, subject to change. Interest starts accruing when the loan closes.

Smart Energy Loan

 

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