It’s Spring, which means you’re probably letting your bank account recover from the brutal winter heating season we just experienced. If you’ve got an inefficient heating and cooling system, you may also be considering upgrading that system this year to avoid more sky-high bills like the ones you just finished paying off.
If this sounds like your situation, you’ve probably already started researching energy efficient heating and cooling options. Most likely, you already know that geothermal heat pumps are the most efficient way to heat and cool your home, otherwise why would you have landed on this blog?
It’s true, geothermal heat pumps are hands down the most cost-effective way to heat and cool your home, but they have one major drawback. The system that harvests the heat from beneath your feet (the energy supply source) can be expensive to install. Fortunately, more and more states and provinces are offering heat pump rebates and incentive programs to help residents decrease their energy bills by offering 0% financing programs for geothermal installations. Let’s look at this one from Energize Connecticut.
How to Get 0% Financing for your Connecticut Heat Pump Installation
Here’s how it works: Energize Connecticut is offering 0% APR loans for energy heating system upgrades, and geothermal heat pumps are on that list. The maximum amount you can borrow is $15,000, and the loan is paid back on top of your monthly energy bill. The loan terms vary from three to ten years, and you need a down payment of at least 10% of the overall cost of the project.
Heat Pump Rebates in Connecticut: The Process of Securing Financing
If you’d like to take advantage of this program, here’s the where to start: First, you need to get an estimate from an approved contractor for your geothermal installation. You can find a list of approved contractors here. The next step is to get approved for a loan through the Energize Connecticut program. Your contractor will be able to estimate your monthly payments on the spot, but you’ll need to apply by phone or online to get final approval.
Once your loan is approved, your contractor will verify the amounts by sending Energize Connecticut a copy of their estimate. Then you’ll need to sign a “Loan Note” confirming all of the information provided is correct. Once the work is completed, Energize Connecticut pays the contractor, and you’ll start making payments on the loan as part of your monthly energy bill.
Estimating Monthly Payments for Your Geothermal Heat Pump in Connecticut
Let’s look at how much your monthly payment would be for a $15,000 geothermal installation, if you financed it through this program.
First, you’d need a 10% down payment, or $1,500. Then you’d be able to finance the remaining $13,500 at 0% interest for ten years. This means your monthly payment would be:
$13,500 / 10 years / 12 months = $112.50 per month
An extra $112.50 per month on top of your current electricity bill may seem like a lot, but you have to keep in mind that you’ll be saving money on your heating costs immediately. Depending on what type of heating system you are retrofitting from, you could save up to 75% on your heating costs. For example, if you were retrofitting off electric baseboard heat, and your current heating bill is $400 per month, you’ll save 75%, and your bill will be brought down to:
$400 x 25% = $100 per month
Even if you add the $112.50 monthly payment, you’re still saving money immediately:
$100 heating bill + $112.50 monthly payment = $212.50
That’s a monthly savings of ($400 – $212.50) = $187.50
That’s a great value! Especially when you consider the fact that geothermal heat pumps typically last twenty years or more, so the loan will be paid off long before you need to replace your heat pump. Programs like this make it easier than ever for homeowners to get away from old and inefficient heating systems and upgrade to more efficient, more cost effective, and more environmentally friendly technology like geothermal heat pumps.
Interested in finding out more about how geothermal heat pumps can improve your life? Download our eBook: Geothermal Energy: Consistent, Comfortable, and Cost Effective Heating and Cooling.