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Geothermal Financing: How Does It Work?

Sustainable Living Bryson Buehrer March 17 4 minutes reading time

The ambition to reduce your energy usage and work towards a cleaner, more sustainable home is a noble one, and geothermal is the perfect option to check off those boxes. According to the EPA, geothermal is the "most energy-efficient, environmentally clean, and cost-effective" solution for heating and cooling your home. Before recently, however, there wasn't a solid homeowner-focused option to get one of these fantastic systems for zero money down. Let's break this down, and see how you may be able to use your financed geothermal system to actually save more than your monthly payment on that loan!


The Benefits Of Financing Your GeoComfort Geothermal System

Why Would You Take Advantage Of A Geothermal Loan?

Similarly to buying a new car, there aren't many people who can write a check for a brand new system upon installation. This up front cost is precisely the barrier to entry for most homeowners, so we can see where financing becomes a necessary option for those wanting to install geothermal. Our loan is a little different than most home equipment loans, in that the loan is secured by the installed equipment as opposed to the equity in your house. This means that you don't need any home equity to get a geothermal system for no money down!

What Sets This Loan Apart From Other Options?

For our financing option, we partnered with a credit union that specializes in energy-efficient home improvements, and offers flexible and competitive financing options for a variety of projects and technologies. We found this expertise invaluable as we began to implement this program, as we wanted something that was clearly homeowner-focused. With this program, you'll have access to:
  • Loan amounts of up to $70,000
  • Competitively low, fixed interest rates
  • Short-term, long-term, and combination loan options
  • Electronic and automatic payments
  • Absolutely no prepayment fees

How Does This Actually Work In Real Life?

There is really no standard for how much an installed geothermal system will cost, but we can use some average values to predict the type of costs and savings a homeowner can expect. While recent new construction homes tend to be larger (2,400 ft2), the average home size of older and newer homes is closer to 2,000 ft2. At this size, we'll use an installed system cost of $24,000, and assuming that the homeowner opts for a 15-year loan. 

After the 26% U.S. Federal Tax Credit, your installed cost drops to $17,760 for this high-efficiency technology. We'll pit this number against a relatively low-cost, middle-efficiency furnace and air conditioner combo, coming in at $11,000. Already, we're only at a $6,760 difference. When we factor in the monthly heating and cooling costs, coupled with the financing payments for each system, the "pricier" geothermal solution still comes in around $73 cheaper each month compared to the traditional system. If money talks, then this comparison is screaming. If you're wanting a further, more in-depth breakdown of the benefits, process, and frequent questions associated with our geothermal loan, download our free guide below!

Get Your Free Financing Guide!




Bryson Buehrer
Homeowner's Guide

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