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:

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:

Geothermal Utility Rebate (Dependent on system size and type)
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

* 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.

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