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:

NY Solar Incentives & Financing
NY Solar Incentives & Financing

 

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:

  1. Geothermal Utility Rebate (Dependent on system size and type)
  2. Federal Tax Credit (30%)
  3. 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 $43,450
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
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

 

Smart Energy Loan
Credit Human
Smart Energy Loan
Combo Loan

 

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