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: $43,950
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 (30%)
- State Tax Credit (25%) – $5,000 max per household. Deduction from state tax bill.
Example: Credits & Incentives
Here’s how the federal and NY geo incentives and tax credits play out using the example above:
System Cost | $43,950 |
---|---|
Utility Rebate (Waterfurnace 7-Series) Like cash off; goes directly to system builder upon completion |
-$7,755 |
Geotherm Fall 2022 Discount Discount offered for those who sign a contract by 11/20/2022 |
-$500 |
Contract Cost | $35,695 |
30% Federal Tax Credit Based on contract cost ($35,695 x .30); deduction from federal tax bill for year paid |
-$10,709 |
25% State Tax Credit Up to $5,000 per household |
-$5,000 |
Effective Total Cost | $19,926 |
System Cost | $43,950 |
---|---|
Utility Rebate (Waterfurnace 7-Series) Like cash off; goes directly to system builder upon completion |
-$7,755 |
Geotherm Fall 2022 Discount Discount offered for those who sign a contract by 11/20/2022 |
-$500 |
Contract Cost | $35,695 |
30% Federal Tax Credit Based on contract cost ($35,695 x .30); deduction from federal tax bill for year paid |
-$10,709 |
25% State Tax Credit Up to $5,000 per household |
-$5,000 |
Effective Total Cost | $19,926 |
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: $35,695 | Contract cost: $35,695 | Contract cost: $35,695 |
Smart Energy loan: -$25,000 15 year loan @ 3.49% |
Smart Energy loan: -$25,000 15 year loan @ 3.49% Companion Loan: -$10,695 15 year @ 6.49% loan |
Clean Energy Credit Union: -$10,709 12 month, Short-term tax credit loan Clean Energy Credit Union: -$24,986 20 year @ 6.24% loan |
Total out of pocket: $10,695 | Total out of pocket: $0 | Total out of pocket: $0 |
Monthly Cost: $179.00 | Monthly Cost: $272.00 | Monthly Cost: $183.00 |
Option #1: Smart Energy Loan | Option #2: Clean Energy Credit Union |
---|---|
Contract cost: $35,695 | Contract cost: $35,695 |
Smart Energy loan: -$25,000 15 year loan @ 3.49% |
Clean Energy Credit Union: -$10,709 12 month, tax credit loan Clean Energy Credit Union: -$24,986 20 year @ 6.24% loan |
Total out of pocket: $10,695 | Total out of pocket: $0 |
Monthly Cost: $179.00 | Monthly Cost: $183.00 |
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