Financing a Geothermal System

November 10th, 2013 BY Bart | No Comments

Geothermal energy harnesses the power of the Earth through underground heat. Instead of solar energy from the sun, geothermal systems are built underground to bring energy to the surface. There are tons of hot spots around the world, and certain areas produce more energy than other locations. Geothermal systems are lesser known, but provide a powerful alternative energy source if you live in the right place. These systems can be costly, so financing one is probably your best bet. Here are a few ways you can finance your system and convert to alternative energy today.

Use A Bank Loan 

A bank loan for a geothermal system will cover all or most of the cost. You may be shocked to know that these systems run in the thousands, just like other forms of alternative energy. Banks are encouraged to support home improvement efforts, especially involving a switch to alternative fuel sources. A typical bank loan will have moderate interest rates. If you are in good standing with your bank, they will have no problems loaning you the cash to make such a major investment.

Use Credit 

Credit card offers may not have a limit high enough to pay for the system set up, but you can still look for the best credit cards for your needs. If you have excellent credit, then a charge card would be ideal. Rewards programs are helpful for cash back, especially on such a huge purchase. Try for the lowest interest rates you can find. If your credit is good enough, this won’t be a problem for you.

Get A Second Mortgage 

Many people get a second mortgage to pay for major home improvement purchases. Not many families can afford $25,000 or more up front for a geothermal system. A mortgage will have lower interest rates than other financing programs. Remember to regularly see if you can apply for a lower interest rate.

Look For Rebates 

Rebates will be your best friend when preparing your home for an upgrade like this. Energy efficiency rebates are given to households that upgrade to a green energy source. These are often worth thousands of dollars, so you rarely lose money by investing in one. Geothermal energy will only improve your home. When you pay for the system upfront, the government will give you a voucher or rebate back. This severely reduces the cost of the system. The rest can be paid using loans or credit.

While the cost of a geothermal system may initially seem to be high, there are several programs and rebates in place that can dramatically reduce the costs – not to mention the money you will save on utilities.  So if the high price of a geothermal system has you second guessing this renewable energy practice, let your worries subside.  Not only can you get the price dramatically reduce, but the system will pay for itself in no time.

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