First cost has been identified as a major impedance when shopping for high efficiency heating and cooling equipment, such as geothermal heat pump systems. Creative financing can ease the impact of the initial cost issue. There are now several financing options available to homeowners and commercial/industrial customers who are considering the installation of an energy efficient geothermal system.

For new construction, assumable mortgage packages can be tailored to the needs and economics of the project. Payments and terms are scheduled to take advantage of energy cost savings.

In financing a geothermal system, there are now several new types of assumable, fully amortizing, competitive fixed rate loan programs, with terms up to 15 years. Payments are matched to the expected savings in operating costs.

For the residential customer, these loans can be administered under the Environmental Protection Agency's (EPA) new ENERGY STAR™ program, conducted through various lending agencies. The EPA's Efficiency Financing Program, is encouraging people to purchase only high efficient equipment, which is typically more expensive than less efficient equipment, but will save money in the long run.