$5 Billion Budgeted: New York Leads the Way in Energy Policy!

Announced on January 21st 2020 was New York's long awaited report regarding the future of renewable energy solutions in the State.

​The result: The New York State Public Service Commission has granted $5 billion in funds to the state to continue it's initiatives to #GoRenewable

What is included in this $5 Billion in Funding? (Items below taken from NY.gov)

The fund will operate four major portfolios:

• Market Development ($2.7 billion): NYSERDA will undertake a variety of activities to stimulate consumer demand for clean energy alternatives, energy efficiency while helping to build clean energy supply chains to meet that growing customer demand. At least $234.5 million must be invested in initiatives that benefit low-to-moderate income New Yorkers during the first three years of the fund;
• NY-Sun ($961 million): The fund finalizes the funding and confirms the long-term commitment for NY-Sun and for the growing solar electric market and industry in New York State, by supporting rapid and continued cost reduction. This will continue to make solar energy more affordable and accessible for residential and commercial solar customers, and will drive the growth of the solar industry in New York, which currently employs more than 7,000 people across 538 solar companies in the state;
• NY Green Bank ($782 million): To leverage private sector investment, expand the availability of capital and increase confidence in lending for clean energy projects, the fund will complete the capitalization of the innovative NY Green Bank. The fund will increase NY Green Bank's total investment to $1 billion and will leverage an estimated $8 billion in private investment;
• Innovation and Research ($717 million): As New York State moves to a cleaner, more efficient, and more widely distributed energy system, the Clean Energy Fund will help spur innovations through research and technology development that will drive clean-tech business growth and job creation while providing more energy choices to residential and business customers.

Within the $5 Billion allocated to reaching NY's Green Goals is $454 Million that was given to the public utilities for new incentives to install heat pumps!

How Can You Benefit From These Funds:

NYSERDA Grant Transitions to Utility Grant: The March deadline to get NYSERDA funding ($1,500 per ton towards the cost of a geothermal system) is still in place, however, once that opportunity expires, the utility companies grants/incentives will be available. They have yet to release their incentive programs to the public; check back regularly for updates.​ 

Other Incentives Still in Place: 26% Tax Credit - There was a bill proposed that would extend the tax credit's initial amount (which was 30% in 2019) for 5 years, however, that is at a stand-still. ​

Financing Options: Combining the available incentives, and a low interest rate loan to switch to geothermal from fossil fuels can mean instant savings. Customers enjoy monthly payments as low as $125/month through Enerbank or NYSERDA's loan option.

• Enerbank: This financing option gives you a combo loan. The first part of the combo is a traditional term loan, and the second part of the combo is a bridge loan. This bridge loan is 12 month no-interest same as cash that allows you to borrow your tax credit amount, and pay it off as soon as you receive your tax credit.
• NYSERDA Loan: NYSERDA offers New York residents options for financing that range from 3.99% to 7.99%. The options available are an on-bill recovery loan where your loan is integrated with your utility bill, or a traditional-style loan where you can choose to make auto-payments every month towards your loan. This loan's interest rate is either determined by the geographical location of your home, or by your income and credit. Low-income areas pre-qualify for the lowest interest rate. See NYSERDA's credit guide below to help you anticipate what you may qualify for.

NYSERDA LOAN QUALIFICATION GUIDE:

Wondering what your options are for your home? Contact us below! Quotes are always free.