The tallest hurdle the average homeowner faces when considering whether or not to invest in a renewable energy system for their home is the up-front cost of installing such a system. However, an announcement by Arizona electric utility company APS has turned that around and put solar and wind energy within reach of hundreds of state residential homeowners.

The new GEOSmart loan is designed to eliminate the up-front cost of installing a renewable energy system which will enable more APS customers to take advantage of federal and state rebates and tax incentives. In a joint agreement negotiated by APS and the non-profit Electric & Gas Industries Association (EGIA), unsecured financing for the installment of a personal renewable energy generating system, such as roof-top solar electric systems, solar water heaters, and windmills, provides financial incentives that seek to eliminate initial out-of-pocket expenses.

“We want to make it as easy as possible for customers who want to add a system,” said Eran Mahrer, APS’ Renewable Programs Supervisor.

Until now, homeowners could apply for available federal and state incentives and tax rebates for renewable energy system installations but then had to pay for the balance of the system’s cost up-front. Now, APS provides customers the option of paying that balance with the GEOsmart loan.

Here’s how it works. A typical 3-kilowatt roof-mounted solar electric power system costs around $21,000. Then, tax credits and incentives sponsored by the state or federal government reduce the out-of-pocket cost to APS customers to around $9,000. But now with the new GEOsmart loan program, the homeowner can take out an unsecured loan with which to pay the remaining $9,000 resulting in a net up-front cost of $0.

The loans are made available by a partnership between EGIS and General Electric through EGIA-approved solar energy contractors.

APS is Arizona’s largest and oldest electric utility and is the recipient of two Edison Awards in recognition of their innovation and professionalism in the electric power generation industry and has about 1.1 million customers across Arizona.