TERRASource is the only geothermal company that has specialists on staff that will assist you in receiving up to $10,000* back from your TERRASource Geothermal System using existing City, County, State, and Federal Grants, Credits, Bonds and more…
…And when you make a commitment to purchase a TERRASource Geothermal system our Financial Experts will advise you on all the preparation of documents needed for submission to your local and Federal government so you promptly receive your rebates.
Most who purchase a geothermal system or heat pump never take advantage of these special incentives because of the leg work involved. With TERRASource, we not only take care of the leg work, we even assign a specialist that you can call any time to discuss your individual situation, at no extra cost to you.
* Contingent on qualification. Savings vary from state to state and scope of system integration.
RESIDENTIAL PROGRAMS AVAILABLE (Partial List)
Bonds allow governments (and corporations) to raise money by borrowing. A few states and local governments have established bond programs to support energy efficiency and renewable energy for government-owned facilities. After a government has raised an authorized sum of money through the sale of bonds, the money collected is used to improve energy efficiency or to install renewable energy systems at government facilities. The bonding authority is usually reimbursed using the energy savings resulting from these projects.
States offer a variety of grant programs to encourage the use and development of renewables and energy efficiency. Most programs offer support for a broad range of technologies, while a few programs focus on promoting a single technology, such as photovoltaic (PV) systems. Grants are available primarily to the commercial, industrial, utility, education and/or government sectors. Most grant programs are designed to pay down the cost of eligible systems or equipment. Others focus on research and development, or support project commercialization. In recent years, the federal government has offered grants for renewables and energy efficiency projects for end-users. Grants are usually competitive.
Performance-based incentives (PBIs), also known as production incentives, provide cash payments based on the number of kilowatt-hours (kWh) or BTUs generated by a renewable energy system. A “feed-in tariff” is an example of a PBI. To ensure project quality, payments based on a system’s actual performance are generally more effective than payments based on a system’s rated capacity.
Personal Tax Incentives
Personal tax incentives include income tax credits and deductions. Many states offer these incentives to reduce the expense of purchasing and installing renewable energy or energy efficiency systems and equipment. The percentage of the credit or deduction varies by state, and in most cases, there is a maximum limit on the dollar amount of the credit or deduction. An allowable credit may include carryover provisions, or it may be structured so that the credit is spread out over a certain number of years. Eligible technologies vary widely by state. In recent years, the federal government has offered personal tax credits for renewables and energy efficiency.
Property Tax Incentives
Property tax incentives include exemptions, exclusions, abatements and credits. Most property tax incentives provide that the added value of a renewable energy system is excluded from the valuation of the property for taxation purposes. For example, if a new heating system that uses renewable energy costs more than a conventional heating system, the additional cost of the renewable energy system is not included in the property assessment. In a few cases, property tax incentives apply to the additional cost of a green building. Because property taxes are collected locally, some states have granted local taxing authorities the option of allowing a property tax incentive for renewables.
States, utilities and a few local governments offer rebates to promote the installation of renewable energy systems and energy efficiency measures. The majority of rebate programs that support renewables are administered by states, municipal utilities and electric cooperatives; these programs commonly provide funding for solar water heating and/or photovoltaic (PV) systems. Most rebate programs that support energy efficiency are administered by utilities. Rebate amounts vary widely by technology and program administrator.
Sales Tax Incentives
Sales tax incentives typically provide an exemption from, or refund of, the state sales tax (or sales and use tax) for the purchase of a renewable energy system, an energy-efficient appliance, or other energy efficiency measures. Several states have established an annual “sales tax holiday” for energy efficiency measures by annually allowing a temporary exemption – usually for one or two days – from the state sales tax.
Utility Rate Discounts
A few utilities offer rate discounts to encourage residential energy efficiency. For homes that meet certain energy efficiency criteria, such as those established by the federal Energy Star program, the owner or tenant is awarded a discount on his or her electric bills.
FINANCING PROGRAMS AVAILABLE
A handful of programs have been established by government agencies and utilities that allow homeowners, businesses, and other entities to lease energy-efficient equipment or renewable energy systems. In some cases, the customer may choose to purchase the system after a specified period of time.
Loan programs provide financing for the purchase of renewable energy or energy efficiency systems or equipment. Low-interest or zero-interest loans for energy efficiency projects are a common demand-side management (DSM) practice for electric utilities. State governments also offer low-interest loans for a broad range of renewable energy and energy efficiency measures. These programs are commonly available to the residential, commercial, industrial, transportation, public and/or non-profit sectors. Loan rates and terms vary by program; in some cases, they are determined on an individual project basis. Loan terms are generally 10 years or less. In recent years, the federal government has offered loans and/or loan guarantees for renewable and energy efficiency projects.
Financing Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for renewable energy and/or energy-efficiency improvements. The amount borrowed is typically repaid over a period of years via a special assessment on the owner’s property. In general, local governments (such as cities and counties) that choose to offer PACE financing must be authorized to do so by state law.
COMMERCIAL PROGRAMS AVAILABLE (Partial List)
Corporate Tax Incentives
Corporate tax incentives include tax credits, deductions and exemptions. These incentives are available in some states to corporations that purchase and install eligible renewable energy or energy efficiency equipment, or to construct green buildings. In a few cases, the incentive is based on the amount of energy produced by an eligible facility. Some states allow the tax credit only if a corporation has invested a minimum amount in an eligible project. Typically, there is a maximum limit on the dollar amount of the credit or deduction. In recent years, the federal government has offered corporate tax incentives for renewable and energy efficiency.
Green Building Incentives
Green buildings are designed and constructed using practices and materials that minimize the impacts of the building on the environment and human health. Many cities and counties offer financial incentives to promote green building. The most common form of incentive is a reduction or waiver of a building permit fee. The U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) is a popular point-based certification program for green buildings. The LEED system awards points for site selection and development; material, energy and water efficiency; indoor air quality; innovation; and the application of renewable technologies.
To promote economic development and the creation of jobs, some states offer financial incentives to recruit or cultivate the manufacturing and development of renewable energy systems and equipment. These incentives commonly take the form of tax credits, tax exemptions and grants. In some cases, the amount of the incentive depends on the quantity of eligible equipment that a company manufactures. Most of these incentives apply to several renewable energy technologies, but a few states target specific technologies, such as wind or solar. These incentives are usually designed as temporary measures to support industries in their early years. They commonly include a sunset provision to encourage the industries to become self-sufficient.