Project Snapshot

Residential Geothermal

 

About the Building

Single-family home

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:
Amount: $9,100*
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:
Amount: $25,900*
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.

About Geothermal

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.

Financing Details

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
Pepco Incentive$1,800
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.