Property Upgrade Summary
Installation of closed loop geothermal system with two loops and water furnace.
Geothermal heat pumps are considered a form of high efficiency heat pump. These systems rely on heat transfers between the air and the ground to provide heating and cooling to homes and buildings.
Green Bank Financing
General Project Cost: $35,000
Loan Product: Combo (Short Term and Long Term)
Short Term Loan:
Average APR: 5.50%
Term: 12 -18 months
Fees: No Financing Fees**
Monthly Payment: None. One-time payment of $9,850.75 due at term of loan and after receipt of previous year’s income tax credit.
*26% of Project Cost (Equivalent to the Federal Income Tax Credit).
**$25 Application Fee
Long Term Loan:
Average APR: 5.75%
Term: 12 or 15 Years
Fees: No Financing Fees**
Monthly Payment: $204.82
*74% of Project Cost
**$25 Application Fee plus ~$300 UCC1 Filling Fee.
Projected Annual Energy Savings
Conversion from Gas: 24,584 kWh (of equivalent heat & electricity)
Conversion from Electric: 9,275 kWh
About the Project
Stockbridge at Tanglewood Condominiums became the first local commercial entity to use a loan under the Small Business Energy Savings Support product to improve its operating budget and gain savings. The Association worked closely with the Montgomery County Green Bank and City First Enterprises to secure a $44,000 loan. New LED fixtures on the property are reducing energy consumption by 100,000 kWh per year and saving over $14,000 annually. The contractor worked closely with Pepco to secure substantial incentives that help offset the costs of this project.
A geothermal system is similar to a conventional heat pump heating and cooling system. A conventional heat pump, also known as an air source heat pump, takes heat out of the air and moves it into the home in winter and out of the home in summer. A geothermal heat pump, also known as a ground source heat pump, is a high efficiency type of heat pump which uses the earth’s stable temperature to heat and cool the home. Geothermal systems have pipes that are buried in the ground in which a liquid is circulated through. The liquid transfers the heat from the earth and moves it into the house during winter and removes heat from the house and transfers it into the earth in the summer.
The Green Bank with City First Enterprises provided the capital necessary for the energy efficiency measures.
|Total Cost for HVAC Replacement||$35,000|
|Clean Energy Advantage Program Loan||$35,000|
|Maryland Energy Administration Incentive||$3,000|
|Federal Income Tax Credit (26% of Project Cost)||$9,100|
|Net Project Cost||$21,100|
Montgomery County Green Bank’s Role
The Montgomery County Green Bank’s small business program brought partner and the needed capital to support the Stockbridge project. The Green Bank works closely with the Montgomery County Commission on Common Ownership Communities to help association boards execute on long term energy plans and financing strategies to be able to implement projects.