Residential Incentives & Financing
Low Interest Financing Now Available – Plus Federal Tax Credit and Utility Rebates !!
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 8 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 August 15, 2022 the Inflation Reduction Act (IRA) was signed into law extending the federal tax credit for geothermal heat pumps in the residential sector. Credits have been extended to December 31, 2032. For 2022 to 2032 the credit is 30% and in 2033 the tax credit will be 26% and 2034 will be 22%. Note: Commercial building geothermal credits are more complicated but are generally increasing to 30% through 2032, though there are several factors which could increase or decrease the commercial buildings credit.
25% New York State Tax Credit / Cap of $5,000 – Residential
In the NYS Budget passed in April of 2022, a NYS Income Tax Credit of 25% with a cap of $5,000 was put in place for qualified residential geothermal heat pump systems. Key eligibility criteria include the residence needs to be in NYS and is the taxpayer’s residence at the time the geothermal energy system is placed in service. If you have limited NYS tax liability, the credit can be used over five (5) taxable years. Be sure to check with your tax or financial advisor about your ability to take advantage of the NYS Geothermal Tax Credit. For tax year 2022, the NYS tax forms for the Geothermal Heat Pump tax credit are going to be available in December of 2022 or early January 2023.
Geothermal Electric Utility Rebate Programs !!
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 to $2,000 per 10,000 BTU of the heat pump for most utility areas we cover. So a typical 4 ton residential system will qualify for about $6,000. Larger projects (e.g., multi-family, hospitals and college campuses) are custom measures based on annual site energy savings.
There are also rebated for hot water generators (called desuperheaters) and heat pump water heaters. We’ll be sure to include any additional rebates in our estimate to you.
On-Bill or Energy Smart Loans
- Loans are up to $25K with terms of 5, 10 or 15 years available.
- The Residential Financing Options compares the loan options available and the loan criteria.
- 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!
Two very impactful studies from the US DOE and the Ontario Clean Air Alliance both come to the same basic conclusion, ..."the mass deployment of GHPs can electrify the building sector without overburdening the US electric power system.” Not a surprise to people involved in the geothermal heat pump industry for many years, but nice to have the timely recognition. Continue