Many of us don’t have $20K or more laying around to pay for a geothermal heating/cooling/domestic-hot-water system. However, through a combination of rebates and financing, a geothermal system can not only be quite affordable, in many cases, it will pay for itself in energy savings immediately.
New York State Energy Research and Development Authority (NYSERDA) encourages New York residents and businesses to convert to geothermal by offering a Ground Source Heat Pump Rebate Program to defray some of the costs. The current program, which runs through June 2019 or when the allotted funding runs out (whichever comes first), provides rebates of $1500 per ton for qualified systems up to 10 tons – an average size residential system is 4 to 5 tons – and $1200 per ton for larger systems. Single-family residential systems are capped at $15,000. All applications must be submitted by participating designers or installers like Lake Country Geothermal.
A federal tax credit is available for residential geothermal systems placed in service by December 31, 2021. It’s worth 30% of covered expenditures through 2019; 26% through 2020; and 22% through 2021. The property must be used as a residence by the taxpayer, although it doesn’t have to be the primary residence. Consult your tax preparer and use IRS Form 5695 to claim the credit.
Your electricity supplier may also offer an incentive for installing a geothermal system. Check with them directly.
Through our partners, we offer several attractive financing options including secured and unsecured loans with terms to 20 years to cover the balance (after incentives have been applied). We can even do an additional short-term loan to cover the federal tax credit until you apply it. Contact us to learn more.
In many situations, your energy savings will more than offset your monthly loan payments, resulting in no money down and immediate positive cash flow after your installation!