Sunday, June 24, 2012

Geothermal - numbers continued - Leo J Roth

Somehow in my previous post I forgot to talk about the geothermal incentives offered by the federal government, and the financing available.

Because geothermal is very energy efficient (400% efficient) the federal government offers a 30% tax credit for the total cost of installation! A credit is where the government just gives you the money back (much more generous than a deduction). In addition, NY state offers very generous financing through NYSERDA, which consists of 3.5% financing for 15 years as an unsecured loan, or 3% financing for 15 years as a secured loan (your house being the collateral). Both of the other companies (that I didn't go with) offered the NYSERDA loans, but Leo J Roth did not.

I thought this was going to be a deal breaker, but they actually came back to me with an even better offer through a 3rd party home improvement loan lender. This financing was a little bit odd to me. It was described as a 7 year, 0% interest "same as cash" loan. Sounds awesome, right? The catch was that there is a 10% up front "fee". Basically, you're paying the interest first. If you do the math you end up paying about the same amount of interest as a 3% loan, so it was still a great deal!


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