Why Offer Financing for Geothermal Systems?

Why Offer Financing for Geothermal Systems?
It Provides Big Benefits for You and Your Customers

The Tempstar® geothermal product line provides consistent comfort, energy savings and sustainability as well as superior efficiency. Premium systems come with a cost, and a geothermal system is no different. 

Many customers may not be in a financial position to pay cash for a major service repair on their current heating and cooling system, let alone a "base" model conventional HVAC unit. They will need some sort of financing.

As a successful contractor, why should you offer financing for the Tempstar geothermal systems you sell? Geothermal financing can: 

That's where EGIA®1 can help. EGIA is a leader in specialized financing programs for the geothermal industry. Click here to learn more about the Tempstar-EGIA Geothermal Financing Program. 

Now, let's talk with Paul Bony2, EGIA Geothermal Financing Consultant, about: 

► The importance of financing, 

► The customer/dealer benefits associated with financing, and 

► How to get started with the Tempstar-EGIA Geothermal Financing Program. 

 

 


Q: In your opinion, why is financing an essential component of geothermal system sales and how does it benefit the contractors who offer it? 

A: If you are not offering the right long-term, low-payment financing for your geothermal systems, you are leaving behind the bulk of customers who want a geothermal system but can't afford that initial payment. Only a small segment of the market can pay cash for a geothermal system. 


 


Q: Some HVAC contractors offer financing while others do not. Are you aware of other "renewable" product installers who have offered financing? What have their results been? 

A: Surprisingly, the residential solar photovoltaic (PV) industry is bigger than the geothermal market. Over 80% of solar PV sales use some form of financing. 

My estimate is that less than 10% of the geothermal heat pump retrofit market includes contractors who utilize financing options.


Q: You work with many companies in the geothermal industry. What have your observations been this year with the U.S. tax credit ending? How do financing options help contractors create leads or increase sales?

A: One observation is that residential retrofits have dropped significantly. But, in most climate areas, even with a low cost for natural gas, a 20-year geothermal payment plan can deliver a geothermal system for less monthly cost than a financed traditional HVAC replacement. In areas with propane and fuel oil, the geothermal monthly payment can be less than the annual utility savings.

Geothermal contractors should consider changing their business model to capture a bigger share of the market. When consumers learn the monthly cost of ownership through a financed geothermal system, they will most likely choose that option. 


Q: How can Tempstar contractors get started with the EGIA Geothermal Financing Program?

A: Click here to get started. Complete an EGIA Membership Application and a Finance Program Application and you're on your way!


Talk to Your Tempstar Distributor About Scheduling a Geothermal Financing Training Session 

Interested in learning more about the financing options available through EGIA? Talk with your distributor or Eric Senio, Tempstar Geothermal Heat Pump Sales Manager, about scheduling a geothermal financing training session in your area soon. 


1EGIA is a registered trademark of the Electric & Gas Industries Association Corporation.

2Paul Bony is a Financing Consultant with EGIA in the Geothermal Financing Division. With more than 30 years in the geothermal industry, Paul has launched several geothermal utility-owned loops and started and managed a geothermal installation dealership before coming to EGIA. He is a board member of the IGSHPA™ (IGSHPA is a trademark of the International Ground Source Heat Pump Association) and a chairman of IGSHPA's Advocacy Committee.