But answering two important questions is:
There are a variety of ways to reduce the out-of-pocket contribution and finance the cash required. Below we explain available New York geothermal incentives and financing options, and apply each to a real-life example:
See how attaining a geothermal home system could become a reality for you!
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.
By taking advantage of government incentives and tax credits a geothermal system for your home is a solid financial investment. Payback periods are short, and return on investment high for you to fix your energy costs well into the future. There are rebate and tax credit options, as follows:
1
Geothermal Utility Rebate (Dependent on system size and type)
As good as cash directly off the project cost
2
Federal Tax Credit (30%)
Direct bottom-line deduction from federal tax bill.
3
State Tax Credit (25%)
$5,000 max per household. Deduction from state tax bill.
Here’s how the federal and NY geo incentives and tax credits play out using the example above:
| System Cost | $43,450 |
|---|---|
| Utility Rebate (Waterfurnace
7-Series) Cash incentive goes directly to system builder upon completion |
-$7,755 |
| 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 |
Installing a geothermal system is a smart investment—but it must make sense financially for your family. These are the current financing options available:
1
NYSERDA Smart Energy Loan (Currently 3.49% or 6.99%)
15 year loan that can cover up to $25,000 of total system cost. Two loan rates offered depending on location and income.
2
Credit Human Solar System Loans (8.49%)
10, 15 or 20 year loans that can cover entire contract cost (up to $100,000). Once received, tax credits can be used to re amortize loan at no cost for lower monthly payments, or kept for other use.
Here’s how these options break down using the example above:
Smart Energy Loan |
Credit Human Loan |
|---|---|
| Contract cost: $35,695 | Contract cost: $35,695 |
| Smart Energy loan: -$25,000 15 year loan @ 3.49% |
Credit Human Loan: -$35,695 15 year loan @ 8.49% $15,709 – Tax credits used towards loan $19,926 – Re-amortized loan amount |
| Total out of pocket: $10,695 | Total out of pocket: $0 |
| Monthly Cost: $179.00 | Monthly Cost: $196.10 |
Check your eligibility and apply now!
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