GeoChoices

fter a brief standstill in our GeoThermal project, it looks as if the driller will finally arrive on Friday.  We have been waiting for this since we signed the contract on July 3rd!  This made me reminisce about our personal road to GeoThermal and the frustration I feel towards our State in not creating any incentives.  

The State Authority which handles most of the energy efficiency benefits for New York is called the New York State Energy Research and Development Authority (NYSERDA).  I am constantly hearing about New York State encouraging its citizens to “get energysmart” or make energy efficiency improvements on their home.

Well, my husband and I are two New York State residents investing heavily into an energy efficiency and sustainable energy project in our home.  I, of course, assumed that New York State might offer some help.  I read my way through quite a bit of the NYSERDA website.  I was taken aback by the following statement on their website: 

OK, so it looked like I had to check into this “residential loan fund.”  After looking into that I found that I could get a 4 point discount on a loan (i.e. if I took out a loan at 7%, I would really only pay 3% on that loan).  But alas, another glitch, I must take out a loan from a NYSERDA “approved” lender.

OK, so it looked like I had to check out who was a NYSERDA “approved” lender.  I queried the website and actually found a list!  Unfortunately neither of our banks were on the list.  That’s OK, I would go with one of their approved lenders.  So, I called a few of them, the ones that called me back informed me that if I already had a line of credit on my home, they would not offer me a loan.  Unfortunately, my husband and I already had a line of credit open on our home for other home improvement projects.  So, I was out of luck on this route.

I then thought, why not go straight to the source.  There may be something out there.  Also, maybe they do not want residential applications of geothermal in New York State since their website appears to focus on commercial and government applications.  I sent the following email on 6/11/2008:

I am interested to know why NYSERDA does not offer any incentives for a

ground source heat pump to New York residents?  I note that substantial

incentives are offered to industry.  Is this because NYSERDA does not feel

the geoexchange is a good thing for residential applications?  If so, I am

interested to know what the drawbacks are.

Thank You,

I received the following reply on 6/17/2008:

If you look closely at our residential programs you will note that we do

not offer specific incentives for any HVAC system, geothermal or otherwise.

The programs address the overall building efficiency (including HVAC), and

GHP systems can be part of that mix.  My experience is on the commercial

side, but a good contact in our residential group is xxx xxxxx (ext. xxxx).

From a technology prospective, it is appropriate for residential use.  Most

folks who install systems tell me the payback is somewhere between 6 and 15

years, depending on a number of factors.

The only thing I would point out is that GHP systems provide efficient

heating and cooling.  When you install a system you are paying for a

heating and cooling system.  As with any energy efficiency measure, the

more you use it, the faster it pays for itself.  If you install a CFL light

bulb in a closet where it is used an hour a year, you could not expect it

to pay back any time soon.  Similarly, if you only require heating, the

payback will be longer than if you are replacing/supplanting both heating

I’ve crossed out and left out the names purposefully for obvious reasons.

So, basically, what NYSERDA was telling me is that a system will pay for itself so they do not offer incentives.  Maybe I’m a little sensitive, but I felt that this was a bit condescending.

I then decided to research what kind of incentives they offer commercial and government institutions.  What I found was that literally millions of dollars have been given to commercial and government entities.  It seems as if NYSERDA falls in with the “who cares about the average person, let’s only help larger organizations” attitude.  Don't get me wrong, I absolutely applaud our State Authority helping schools and other organizations utilize GeoThermal, at the same time, I do not feel that individuals should be thrown to the side.  A limited list of help that I found NYSERDA has offered over the years is below:  

Albany Molecular Research - $400,000 - $800,000 depending on which source you use

Tannery Pond Community Center - $93,852

Bard College - $234,655

Sullivan Community College - $250,000

Saratoga Race Course - $57,203

Brockport High School - $250,000

Newfane Elementary School - $250,000

In conclusion, I would have loved to have said that I live in a progressive State that helps its residents become more energy efficient and make the right choices.  Although I cannot say that, it did not deter either my husband or me.  Installing a GeoThermal system in our home has required TRUE financial sacrifice.  Not the financial “sacrifice” that you hear about these larger companies who are installing systems but being financially and technically subsidized by the State.  We are feeling every penny as we write each check to our contractor.  We know that it will take us a significant amount of time to pay this back.  So, yes, I am stepping up on a high horse and tooting my own horn.  If I had received financial support from my State I would have been tooting their horn, but alas, no such luck!