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: $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 |
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