The tax credits available for ground source heat pump systems or geothermal systems (as they are often called) are still available. Actually the tax credits now have no cap. Earlier, when the Stimulus Bill was initially passed, there was a cap on ground source systems. Now, 30 percent of the entire cost of both equipment and installation is eligible for the tax credit. You should consult with your tax advisor for details and eligibility.
Ground source heat pumps work much in the same manner as the above-ground heat pumps do. The difference is that when outside air temperature is 10 degrees, the below ground temperature is between 50 to 55 degrees. The actual temperature is relative to the latitude above the equator. So, when extracting heat from air at 10 degrees, a heat pump works harder and requires more energy. Extracting heat from the earth at more than 55 degrees consumes far less energy.
Since the temperature is constant at a certain point below ground, the ground source heat pump works less and requires less energy in both winter for heat and summer for cooling.
If the instalation costs are $30,000.00 with a 30 percent rebate, the homeowner will get a $10,000.00 credit. The incentives are great. The tax credit combined with lower energy bills year after year makes geothermal heating and cooling a very tempting deal.
Estimates from the EPA demonstrate that energy consumption is 30 to 40 percent less by using a ground source heat pump as opposed to the above-ground heat pump.
Lower energy bills over the years combined with the generous tax credit are definitely worth consideration for many. Those building new homes are especially looking in to the benefits of geothermal home comfort. The systems are estimated to last for 25 years or more for all above ground components, 50 years for the loop system below ground.
Information about these systems is available from Rodenhiser. Their expert staff can answer any questions about ground source heating and cooling.
Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems). For more information about ground source heat pumps and other HVAC topics, download our free Home Comfort Solutions Guide.