Heat Pump Financing

• The energy right^®Program is offering a high efficiency heat pump financing promotion through March 15, 2012.
• The promotional interest rate is 6%.The promotional rate will apply to all heat pumps with a minimum of SEER 14 (Split or Packaged) and Advanced Heat Pumps.
   
  Except for the high efficiency requirements, the special promotion guidelines for this program remain the same as for all other heat pumps. These guidelines are as follows:
   
• Financing is for the installation of a new electric heat pump in an existing home in the SVEC service area
• Heat pump MUST have a minimum SEER rating of 13
• Fixed, low interest rate of only 8%.
• 10-year financing with no penalty for early pay-off.
• Applicants must be the homeowners and have at least one year of good credit history with SVEC at the current location.
• All manufactured homes must be on a permanent foundation and underpinned. Applicants must be the property owner.
• A $20 non-refundable processing fee is required to be turned in with the completed application and "Agreement to Participate." form to apply for the loan. Note: applicants must now provide a copy of a valid drivers license or other official photo ID with application.
• Upon signing of the final paperwork, a fee set by the State and based upon the amount of the loan will be charged to the applicant's account to cover the filing. The State of Tennessee requires these forms to be renewed in 5 years. At that time, the applicant's account will be charged the fee set by the State. And when the loan is paid off, the applicant's account will be charged the cost of releasing the UCC-1. (The State of Tennessee charges SVEC for the filing, re-filing and release of the UCC-1-. SVEC then bills the applicant's account.)
• A qualified applicant can borrow:
  For conventional (air source) electric heat pumps (including ductwork and installation cost), $6,500 is available for units under 3 tons. An additional $1,000 is available if an electrical upgrade or extra insulation is required to meet TVA standards. For units 3 tons and over, there is a maximum of $10,000 which includes any electrical upgrade or weatherization needed.
  For advanced heat pumps including: high efficiency ground source (geothermal) heat pumps, variable speed compressor units or triple function units under 3 tons, $8,500 is available; $12,000 is available for units 3 tons and over.
  For homes requiring two units - Up to $12,000 is available.
• Heat pumps must be installed by a member of the Quality Contractor Network. Free estimates are available. Stop by and pick up a list at any SVEC office or click on the link below.
• Electrical inspections are required at no additional cost to the customer, to assure quality installation.
• All heat pump installations are subject to an inspection before release of funds. This is free of charge to the customer and is arranged by the contractor.
• Payments are conveniently added to the recipient's monthly electric bill.

Heat Pump Information available for download

SVEC "Financing Facts" and "Steps to Obtaining an SVEC Electric Heat Pump Loan"

Application for Heat Pump loan

Agreement to Participate

Quality Contractor Network