

Financing For Geothermal: How Does It Work?

Sustainable Living Steve Smith April 02 3 minutes reading time

The desire 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. With all those benefits, it has still been historically hard to get a solid, homeowner-focused financing plan with this technology. Now, you can get a geothermal system for zero money down, and can actually save more on utilities than your monthly payment costs. Let's see how!


How and Why To Finance Your Hydron Module Geothermal System

Why Finance Your Geothermal System?

There aren't too many folks who can write a check for a brand new system when it's installed, much like buying a new car. Most homeowners find the upfront cost is their largest barrier to entry, so we can see where financing becomes a necessary option for those wanting to install geothermal. Our loan is slightly different than most home equipment loans, as the loan is not secured by your home equity, but the actual installed equipment. This means that you can get a geothermal system for no money down without any equity in your home!

What Sets This Loan Apart From Other Options?

For this program, we partnered with a credit union that specializes in energy-efficient home improvements and offers flexible, competitive financing options for a variety of projects and technologies. This expertise is invaluable when crafting a homeowner-focused plan; something we set out to do from the beginning. 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 isn't really much of a standard for the cost of an installed geothermal system, 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. 

The current 26% US Federal Tax Credit drops your installed cost drops to $17,760 for this high-efficiency system. We'll place this number against a comparatively low-cost, middle-efficiency furnace and air conditioner combo, coming in at $11,000. Already, we're down to just 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. Savings talk, and the math here speaks volumes. If you're wanting a more in-depth breakdown of the benefits, process, and FAQs associated with our geothermal loan, download our free guide below!

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Steve Smith


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