Residential Incentives & Financing
Incentives are at Record Levels – Federal, State and Utilities Combine for the First Time
With today’s incentives and financing options, residential customers can afford the most efficient heating and cooling systems available. If you choose to finance the system, the savings can often cover an increase in your mortgage or the amount of the loan payments – in some cases with No Money Down! For those paying cash it’s perhaps the best investment you can make in your home with outstanding returns.
For Upstate NY homes heated with Propane, Heating Oil, or Electric Baseboard
- A geothermal system will save 40-75% on annual heating and cooling costs.
- The savings alone often cover any monthly loan payment or increases in mortgage.
- Payback periods are typically 5 to 7 years for retrofit and 3 to 5 years for new homes.
- Electricity used by the heat pump can be offset by renewable Photovoltaic (PV) Solar.
30% Unlimited Federal Tax Credit – Residential
On February 9, 2018 a bill was signed into law restoring the 30% federal tax credit for geothermal heat pumps in the residential sector. These tax credits are retroactive to Jan 1, 2017, so homeowners who bought a system last year are eligible for the 30% credit. Credits have been extended to December 31, 2021. They’ll remain at 30% until December 31, 2019, at which point they’ll begin a phase-out. For 2020, the credit will move to 26% and in 2021 the final incentive will be 22%.
NYSERDA Geothermal Rebate Program !!
The amount of funding available to each project will depend on its size and the heat pumps capacity. Smaller projects (e.g., residential and small commercial buildings) get $1,500 per ton with a cap of $15,000 per project. So a typical 4 ton residential system will qualify for about $6,000. Larger projects (e.g., multi-family, hospitals and college campuses) can receive up to $500,000 per building with payments being made throughout the project. No single site can receive more than $1 million.
Utility Incentive Programs
Some local utilities have recently introduced credits and rebates in addition to the 30% Federal Tax Credit and NYSERDA Rebate listed above.
National Grid Heat Pump Rebate In the Upstate New York Region National Grid electric customers converting to heat pumps from either oil or propane heat are eligible for a rebate for geothermal heat pump systems of $400 per ton with a maximum rebate of $1,500 per home. Call us to check eligibility.
Central Hudson Gas & Electric Geothermal Rate Impact Credit CHG&E customers are eligible for an annual Geothermal Rate Impact Credit of $264/year. Call us to check eligibility and program details.
NYSEG Heat Pump Rebate Starting in 2019, NYSEG will offer residential electric customers converting to heat pumps a rebate for geothermal heat pump systems. The program details have not been released yet. Call us to check eligibility.
NYS Low Interest Financing – On-Bill Recovery or Energy Smart Loans
- The Residential Financing Options compares the loan options available and the loan criteria. The Residential Interest Rate Estimator is to determine whether you may qualify for a reduced interest rate.
- Requires a Free or Reduced Cost Home Energy Audit
- Contingent on credit qualification and savings-to-investment ratio criteria
- Only for retrofit / existing homes – no new construction
To learn more about how Aztech Geothermal can help you finance, and save on home energy heating and cooling, please don’t hesitate to contact us today!
Bill Nowak, the Executive Director of the New York Geothermal Energy Organization (NY-GEO) regularly updates the membership of what's going on in New York and around the world. The pace of change is staggering lately so we thought to share this most recent update. It's really just a snapshot of a strong trend to electrifying the heating and cooling of buildings with heat pumps. Continue