Residential Financing & Incentives
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.
Incentives & Financing Options
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.
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