Free Home Heating system (up to $15,000) for qualified NJ Residents

(I wasn't sure whether to post this in Hot Deals or Finance, and I wonder if I'm missing a catch somewhere, but here goes...)

The State of NJ is offering incentives to NJ Homeowners with inefficient heating systems. The details of the plan can be found here:
NJ Clean Energy.

The benefits include a free home audit, incentives, and an interest free $10,000 loan. In order to qualify, you must select from a select list of qualified contractors posted on the website. If your home is inefficiently heated/insulated, you qualify for the rest of the deal, as long as you qualify before 12/31/09 and have the work done within 3 months after that.

Attached to this post is an analysis from one of the qualified contractors (who I have heard of, and I believe they are a well respected contractor), showing that based on the savings, your net cash flow is positive as a result of this program.

Am I missing something?

I realize that the actual cost of repairs may exceed the allowance allowed by the state. And since you are restricted to certain contractors, are the prices extra high? (If you have one company do your audit, are you locked into them for the repairs??)

Anyway, I'd appreciate feedback if anyone has done this.

A loan you have to pay back doesn't seem very free to me...

Rayout said: A loan you have to pay back doesn't seem very free to me...

As I said in the original post, the net cash flow, as based on the attachment, is positive. (Pay $42 for the loan, save $65 in energy savings.) Perhaps free is the wrong word. But rather than carping on the semantics, how about an analysis of the deal?