How to pay for geothermal installation

Discussion in 'General Discussions' started by Bleuteaux, Feb 25, 2009.

  1. Bleuteaux

    Bleuteaux New Member

    I recently purchased a property in Milwaukee, Wisconsin and will need to replace the oil fueled furnace as it is almost past its design life.

    I really want to install a geothermal system but from some of the stories I have read on the forum it sounds like the project could cost upwards of 20K to 40K.

    I don't mind making the investment, but I don't have 40K burning a hole in my pocket, so I was wondering how did those who did a retrofit geothermal installation pay for it?

    Did you just have 40K burning a hole in your pocket? Do the contractors who do the install have payment plans? Are low interest loans available for energy efficient upgrades to a home?

    I found one website, Energy Finance Solutions that offers loans for geothermal installations, but the rates range from 9.99% to 14%!

    I am aware of the state and government tax rebates, but I won't get those until after the fact.
     
  2. moondawg

    moondawg Member

  3. Waukman

    Waukman Member

    Things change, but, when I did my project 2 years ago in Wisconsin, the only money option was a home equity/home improvement loan and cash. Installing geo was(is) no different from doing any other repair on my home.
     
  4. k0wtz

    k0wtz New Member

    how to pay

    well my conclusion is for 40k look at something else there is no way to make this pay. in my case i am studying up and learning how this system works in order to diys.

    our rural el. co-op is offering a 850.00 ton rebate and the fed are offering up to 2k in tax credit. i am keeping my lennox furnace for back up as this system will not keep up on real cold days.

    i think i can put one in for under 7,000 and my a/c is 35 years old which i put in my self no big deal. i have figured in 500 to 1,000 for help in plenimum work and final hook up of the a/c as i dont have the licensing for it.

    from my studies so far i am seeing some real sad stories pertaining to this type of sysem.

    make sure you know what you are buying and what you are getting for your money.

    my 2c

    bob
     
  5. Mark Custis

    Mark Custis Not soon. Industry Professional Forum Leader

    Bob

    Because of your math conclusion, we help DIY folks. I do not need practice tying pexA to re-bar on my hands an knees.

    I am striving to make the loop field as affordable as possible. I also know hydronics and airflow and think the biggest bang for the buck is water to water.

    Equipment costs what it costs. If I get paid for what I know I am happy.

    We do work as an hourly consultant. We like that no liability for equipment of labor.

    If you want a turnkey job then I charge accordingly to cover the warranty issues.
     
  6. arkieoscar

    arkieoscar Member

    tax credit up front

    I was just reading on a PV (solar/electric) forum that you can apply for the 30% tax credit as a grant and get it up front. I haven't researched it but if I was looking for financing on a new system, I certainly would.
     
  7. geo fan

    geo fan Member Forum Leader

    Comerical only
     
  8. geo fan

    geo fan Member Forum Leader

    In my state there are loan programs (CT)
    run by the state for people
    the lower your income the better your rate
    As a company we offer financing though GE
    most hvac companys offer this service
     
  9. Looby

    Looby Member Forum Leader

    BZZZT! Sorry, but thanks for playin'. The fed tax credit is now 30%, no cap.

    1) So, my $40k "no way to make it pay" installation is suddenly down to $28k.

    2) Was planning to replace my 30 year-old oil furnace this season, anyway.

    3) In July/Aug heating oil was $4.79/gal ...and climbing! It will be, again.

    4) My 30+ year-old A/C went belly-up in August, so add that to the tab.

    Maybe in your situation there's "no way to make it pay" -- but the geo
    retrofit has been cash-flow-positive for me starting on day#1.

    Looby
     
  10. embalmed

    embalmed New Member

    about the tax deal, because up until 3 years ago I was a renter on the EZ form.

    is this just a deduction?
     
  11. billym

    billym New Member

    The latest on taxes

    The federal limits are far lower than has been expressed here.

    The quotation below is from the Energy Star site at:

    Federal Tax Credits for Energy Efficiency : ENERGY STAR

    ==============================================
    "How has the new Stimulus bill affected the tax credits for energy efficient home improvements?
    On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits. The highlights are:

    The tax credits that were previously effective for 2009, have been extended to 2010 as well.
    The tax credit has been raised from 10% to 30%.
    The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost.
    The maximum credit has been raised from $500 to $1500 for the two years (2009–2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
    The $200 cap on windows has been removed."
     
  12. Looby

    Looby Member Forum Leader

    Far lower than what?

    I believe the federal tax credit for geothermal systems "placed in service"
    after 01/01/2009 is 30% of the total installed system cost -- with no cap.

    If you have information to the contrary, please provide a link.

    Looby
     
  13. Miggy

    Miggy Guest

    How is the lennox connected?

    My contractor wants to trash my oil burner and I'd like to keep it as a backup, also. My system is forced-hot-air. How are yours connected -- air flow and controls?
     
  14. arkieoscar

    arkieoscar Member

    No. It's a credit. It will come off the bottom line. That means bigger refund or smaller check that you write to the IRS.
    Geofan will explain how the PF will affect it.
     
  15. TechGromit

    TechGromit Member

    This is the company I used to finance my Geothermal system, but my loan was thru a state sponsered program, so my interest rate is only 6%. Check your state, they may have a program to help you pay for it. I had to get a $250 home energy audit to quailfy, but once the system was installed and inspected, they reimbursed me.
     
  16. embalmed

    embalmed New Member

    hmm, sounds like just a deduction... subtracts from the taxable income for the year. the usual "spend 3 dollars, get 1 back" like when I donated my car to charity.
     
  17. moondawg

    moondawg Member

    Seriously. NO. A deduction comes off your taxable income. a CREDIT is directly subtracted from the taxes you owe.
     
  18. k0wtz

    k0wtz New Member

    `new system

    you leave your present system hooked up. install the new sytem to present hot air and cold air when you need additional heat the old system will kick in.

    this is what i do with my wood heat i have them both going at the same time sometimes if the wood goes down too low.

    bob
     
  19. Mark Custis

    Mark Custis Not soon. Industry Professional Forum Leader

    Ask your Tax person

    They will not know, the ink is not yet dry, so no regulations have been writen.
     
  20. Palace GeoThermal

    Palace GeoThermal Well-Known Member Industry Professional Forum Leader

    Trying to run two forced air units through the same ductwork is not a good idea.

    Having a wood stove going the same time as a furnace is entirely different than having two furnaces trying to force air through ductwork that is not big enough.
     

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