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:
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:
- 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 | $36,500 |
|---|---|
| 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 |
-$3,000 |
| Geotherm Covid-19 Relief Discount Discount offered for those who sign a contract by 12/20/2020 |
-$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 available for self-funded projects |
-$3,000 |
| Geotherm Covid-19 Relief Discount Discount offered for those who sign a contract by 12/20/2020 |
-$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 |
| 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 |
| Total out of pocket: $0 | Total out of pocket: $0 |
| Monthly Cost: $179.00 | Monthly Cost: $137.00 |
* Loans provided by EnerBank USA, Member FDIC, (1245 Brickyard Rd., Suite 600, Salt Lake City, UT 84106) on approved credit, for a limited time. Same-As-Cash Loan – repayment terms vary from 24 to 132 months. 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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