What Is Geothermal EaaS?

Heating oil for northeast homeowners has jumped more than 60 percent in recent months according to NYSERDA pricing data. A typical oil-heated New York home burns roughly 900 gallons a year, which now adds up to over $5,500 in fuel costs alone, before service calls, additional price hikes, or other expenses.

If high oil prices have you thinking about making the switch to geothermal heating and cooling but were concerned about the upfront cost, Energy-as-a-Service (EaaS) is the solution for you. The program allows homeowners to pay one low, fixed monthly amount for heating, cooling, and hot water, while Energy Catalyst owns, installs, and maintains everything for 15 years. Here's exactly how it works, what it costs, and whether it's the right fit for your home.

What Is Geothermal EaaS, exactly?

Think of it less like financing a furnace and more like a subscription for comfort. Under the Geothermal Energy Services Agreement, you aren't buying a heat pump, a ground loop, or a hot water tank. You're buying the heating, cooling, and hot water those things produce.

Energy Catalyst designs, installs, owns, and maintains the entire geothermal system at your home. You pay a fixed monthly Service Fee for 15 years, and the equipment stays Energy Catalyst's property the whole time. That distinction, who owns the equipment, is what lets Energy Catalyst capture a federal tax credit on your behalf and build that savings into your rate, rather than you losing out on it entirely (more on that below).

The Benefits of Going the EaaS Route

A low, capped down payment — not a full purchase price. You pay a down payment set in your agreement, capped at 20 percent of total project cost. For example, a typical $70,000 whole-home installation, would only require a $12,000 down payment with many areas offering a tax credit that can fully or partially offset that amount so there is a nearly net zero out of pocket cost to the homeowner. There's no loan application, no lien on your home, and nothing reported to your credit.

One predictable monthly bill, fixed for 15 years. A representative agreement for a 66,000 BTU/hr Double Hybrid Heat Pump™ with a 500-foot Twister Geothermal Ground Loop™ and a 60-gallon hot water tank would cost about $275 a month, fixed for the full 15 year term. That is 40 percent less than the $5,500+ a year many oil customers are now paying, with no ceiling on how high that number could climb.

Maintenance, repairs, and parts are covered. For the full 15-year term, Energy Catalyst covers all routine maintenance, emergency repairs, and replacement parts (including compressors, pumps, controls, and the ground loop), plus property insurance on the system and remote performance monitoring. This isn't a warranty that runs out after year one or two; if the system breaks, Energy Catalyst repairs it at their expense for the life of the agreement.

A performance guarantee with real value. Your agreement sets a Minimum System Capacity for every month of the term. If the system can't deliver that minimum for three consecutive months, for reasons within Energy Catalyst's control, you can stop making payments and terminate the agreement on 30 days' notice. As founder Matthew Desmarais puts it: "If the system doesn't work, you are contractually allowed to stop making payments. We are that confident in our products."

You still keep your state incentives. The agreement preserves your right to claim the New York State Geothermal Energy System Credit (Form IT-267) if you qualify, worth 25 percent of qualified costs up to $10,000. New York State Clean Heat rebates, which can range from $20,000 to $40,000, go to Energy Catalyst as the system owner and are already reflected in your monthly price, so you benefit without the paperwork. If you live outside of New York State, the Energy Catalyst team can help identify all applicable incentives for your area.

No long-term lock-in without an exit. The system is never a lien or mortgage on your house. If you sell, a qualified buyer can simply assume the agreement. And you have the option to purchase the system outright at fair market value at the end of year six, or at the end of the 15-year term.

How the Process Works

1. Request a site assessment. Energy Catalyst evaluates your home, your existing heating system (oil boiler, furnace, baseboard, or ducts), and your property to determine what size system you need.
2. Get your custom design and monthly rate. You'll receive a proposed system design (heat pump size, ground loop length, hot water tank) along with your fixed monthly Service Fee and down payment amount.
3. Pay your down payment and sign. No loan application, no credit check tied to debt, no lien recorded against your home as a mortgage or security interest.
4. Installation. Energy Catalyst installs the Double Hybrid Heat Pump™ and Twister Geothermal Ground Loop™, tied into your home's existing distribution (radiators, baseboard, ducts, or radiant floors).
5. 15 years of coverage. You pay your fixed monthly fee. Energy Catalyst monitors system performance remotely, handles scheduled maintenance, and covers any repairs or part replacements at no additional cost to you.
6. Your options down the road. At the end of year six, and again at the end of the 15-year term, you can purchase the system at fair market value, and at the end of the term you can also renew for three more years or let the agreement end (in which case Energy Catalyst removes the system at their cost and restores your home).

Why Energy Catalyst

Energy Catalyst is the single partner you need to go geothermal. They design and manufacture their proprietary product right in New York State, which means one company stands behind the equipment, the installation, and the 15-year service commitment.

A few reasons homeowners trust them with that commitment:

• They're a manufacturer, not just an installer. Energy Catalyst designs and builds its own Double Hybrid Heat Pump™ and Twister Geothermal Ground Loop™, giving them direct control over quality and the ability to stand behind repairs with their own parts.
• IGSHPA-certified and holders of five issued U.S. utility patents in geothermal and heat pump technology.
• A contracted partner of the U.S. Department of Energy under the Defense Production Act to expand domestic heat pump manufacturing.
• Proven on real projects. Their retrofit of the Hawthorne Valley School received the 2026 NY-GEO Top Job award in the campus category.
• They're confident enough to back it with a performance guarantee. If the system underperforms for three consecutive months, you can walk away. That's not a common clause among HVAC installers.

EaaS Isn't the Only Way to Go Geothermal

Everything above describes the EaaS financing option, but homeowners can choose to simply purchase the product outright. You buy the complete system, own it from day one with minimal routine upkeep — geothermal systems have no combustion, no flue, and no outdoor condenser exposed to the weather). State-level incentives like the New York State Clean Heat rebate and the New York Geothermal Energy System Credit still apply to an outright purchase, lowering your net cost. The federal residential tax credit, however, no longer applies to systems purchased outright in 2026; it's only available through the EaaS structure, since Energy Catalyst captures it as the system's owner.

Which path makes sense depends on your needs: a lower month-to-month commitment and zero ongoing maintenance burden with EaaS, or full ownership and equity in the system from the start with an outright purchase.

The best next step either way is the same: request a free site assessment. Energy Catalyst will walk you through real numbers for your specific home and let you compare both options side by side before you decide.