Switching to renewable energy is one of the smartest long-term investments you can make for your home. To make the transition more affordable, federal and state programs offer tax credits and rebates on geothermal heat pump installations. At NOCO, we help you navigate these incentives so you can maximize savings while enjoying reliable, efficient comfort for years to come.
Incentives That Lower Your Costs
When calculating the cost of a geothermal system, it’s important to factor in available rebates and tax credits. These programs significantly lower the upfront cost of installation.
There are three main ways to reduce your upfront cost:
-
Geothermal Utility Rebate
A direct rebate from your local utility provider, applied to your project cost. -
Federal Tax Credit (30%)*
A credit that lowers your federal tax bill, based on the adjusted cost of your system.
*The current federal tax credit is scheduled to end on December 31, 2025, so homeowners should plan projects accordingly. -
State Tax Credit (25%)
A New York State credit worth up to $10,000 per household.
Here’s how these savings add up on a typical installation:
| System Cost | $44,000 |
|---|---|
| Utility Rebate (WaterFurnace 7-Series) | −$7,755 |
| Adjusted Contract Cost | $36,245 |
| 30% Federal Tax Credit | −$10,874 |
| 25% NY State Tax Credit | −$9,061 |
| Final Effective Cost | $16,310 |
Get the Most From Geothermal Incentives
Maximizing the value of geothermal incentives requires more than just choosing the right equipment. Proper installation, accurate system sizing, and completing the necessary paperwork all play a role in securing the full rebates and tax credits available.
NOCO has decades of experience helping homeowners across Western and Upstate New York transition to energy-efficient solutions. Our team not only handles installation but also guides you through the process of applying incentives, ensuring you receive every dollar of savings you’re eligible for.
Interested in learning more about how geothermal could work for your home? Call NOCO at 716-833-6626 or fill out the form below to schedule a consultation and review your savings options.
