We have discussed the many pros of heating/cooling your new or existing home with a geothermal heat pump system. You have probably found by now that geothermal will save you lots of money on your heating and cooling bills in the long run, even enough to pay for itself. These facts however, do not help in coming up with the money for a system. Here are a few things to consider.
1. Paying cash up front is always the best. This allows you the immediate comfort of a geothermal heating and cooling system. For most of us, cash is not an option and considering financing is the next step.
2. A home equity loan or adding to your existing home equity loan is the most popular way to pay for your geothermal system. Adding a green energy system to your home often adds value in addition to the monthly savings you enjoy.
3. When deciding if now is the time to purchase your geothermal heating /cooling system, take into account how long you plan to stay in your existing home . Also important is the age of your current furnace system. It may be time to switch out your gas/oil furnace in the near future anyway.
4. Consider an “Energy Efficient Mortgage” or EEM if buying or refinancing you home. According to the energystar.gov website, EEMs give borrowers the opportunity to finance cost-effective, energy-saving measures as part of a single mortgage and stretch debt-to-income qualifying ratios on loans thereby allowing borrowers to qualify for a larger loan amount and a better, more energy-efficient home. Learn more at http://www.energystar.gov/ia/partners/bldrs_lenders_raters/EEM_Fact_Sheet.pdf
5. Furnace Manufacturers may offer financing for part or all of the project. Be sure to choose a reputable HVAC dealer and loop installer
6. The best financial reason to install geothermal continues to be that 30% of your investment will be returned on your taxes!

Enjoying the comfort and savings of a geothermal system may be only a few creative financing decisions away. Good Luck!

Becky

These are exciting times my friends. If you have been thinking of greening up your heating system and making it more efficient, this scenario is just too good to pass up.

The tax credit cap was lifted on Geothermal Heating and Cooling Systems and their loops for the first time in history. Because of the American Recovery and Reinvestment Act of 2009 Geothermal systems can receive a 30% tax credit if placed in service before December 31, 2016. Previously the geothermal tax credit had been limited to $2000.

This is a real tax credit not a deduction. A tax credit reduces tax owed dollar-for-dollar –while a tax deduction only removes a percentage of that owed tax. There has never been a better time to invest in Geothermal Heating and Cooling Technology.

An investment is the only way we can describe this particular scenario. Geothermal Heating and Cooling Systems achieve Energy Efficiency Ratings in the 30’s. When you consider the return on investment in energy savings (up to 50% or more) coupled with geothermal tax incentives, you cannot afford to put your money anywhere else!

Join us as in our future posts we explore the world of geothermal heating and cooling and how homeowners can make this green technology work for them. For more than 15 years we’ve been installing geothermal loop and we are VERY excited about the future.