FREE Renewable Energy EvaluationFINANCING 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 2023 Discount Discount offered for those who sign a contract by 11/20/2023 |
-$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 2023 Discount Discount offered for those who sign a contract by 11/20/2023 |
-$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% 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.
- Credit Human Geothermal System Loans (7.99%) 10, 15 or 20 year loans that can cover entire contract cost (up to $100,000). Once received, tax credits can be used to reamortize loan at no cost for lower monthly payments, or kept for other use.
Example: Financing Options
Here’s how these options break down using the example above:
| Option #1: Smart Energy Loan | Option #2: 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 20 year @ 7.99% loan |
| Total out of pocket: $10,695 | Total out of pocket: $0 |
| Monthly Cost: $179.00 | Monthly Cost: $298.35 |
| Option #1: Smart Energy Loan | Option #2: 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 20 year @ 7.99% loan |
| Total out of pocket: $10,695 | Total out of pocket: $0 |
| Monthly Cost: $179.00 | Monthly Cost: $298.35 |
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