I have a Geothermal “Combo loan”, how does that loan work?

Up until 2026, Clean Energy Credit Union offered members a “Geothermal combo loan” which is actually two separate loans that, when combined, offered customers a no-money-down finance strategy that accommodates the 30% federal tax credit which expired at the end of 2025. Here’s how the two parts
work.

• PART 1 OF 2: Short-Term Balloon Loan for 12 or 18 Months: The intention of this short-term balloon loan is to float the amount of this 30% tax credit until after your next annual tax filing. As a result, the principal and interest from this short-term loan MUST be repaid in full within 12 or 18 months of your Geothermal system installation. Significant penalties apply
  for late repayment (17.99% interest over your full loan term). As such, this loan is best fit for homeowners
  who are able to use the full 30% tax credit to pay off their loan on time. This short-term loan can be prepaid at any
  time without penalty and homeowners are encouraged to schedule a one-time, automatic balloon payment on or
  before their loan maturity date.
• PART 2 OF 2: Long-Term Loan for 12, 15, or 20 Years
  The remaining 70% of the cost of your Geothermal system installation is covered in the form of a long-term loan subject to a fixed interest rate and payable in identical monthly installments of principal and interest for a period of either 12, 15, or 20 years. This long-term loan can be prepaid at any time without penalty, and
  homeowners are encouraged to schedule automatic monthly payments.

See additional information here here.