ROI – Residential Payback Model

Currently there is a 30% federal tax credit available for all residential installations with no cap.

Every home will have a different projected payback depending on its location, building contruction, etc. Here we will explore a typical payback for a new construction 2,700 S.F. home vs. a few different conventional setups in the New England climate:

  • 2,700 S.F. new construction home built to code
  • Peak Losses: 45,000 Btuh (3.75 Tons)
  • Peak Gains: 31,500 Btuh (2.62 Tons)

Approx. Total cost for Geothermal System – $45,000 (Before Incentives)

Real cost to you after tax credit $31,500 (After Incentives)

Approx. Total cost for Conventional Oil Boiler w/ Baseboard & Conventional A/C System – $20,000

The initial cost difference between the systems is $11,500. But we will show that in under four years, you will more than compensate for this initial outlay. The savings multiply considerably as time goes by since the cost of fuel will only increase.

Below find a 20 year cash flow projection for this model home for a geothermal system vs. a conventional oil and setup when paying cash for both systems (please note that the utility savings will vary based upon weather data, user’s thermostat setpoints, projected fuel rates, etc.):

Residential Payback – Geothermal
Residential Payback Model – Solar

Commercial Payback – Geothermal
Commercial Payback Model – Solar