Benefits
The US Department of Energy also lists these benefits of geothermal heating systems:
Cost Effective
On average, a geothermal beat pump system costs about $2,500 per ton of capacity, or roughly $7,500 for a 3-ton unit (typical residential size). In comparison, other systems would cost about $4,000 with air conditioning. When included in the mortgage, the homeowner has a positive cash flow from the beginning. For Example, the extra $3,500 might add $30 per month to a monthly mortgage payment. The energy cost savings will easily exceed this added amount over the course of the year. On a retrofit, geothermal energy’s high efficiency typically means much lower utility bills, allowing the investment to be recouped in two to ten years. In addition, some utility companies have financing packages that make the purchase of a geothermal system even less expensive. Still others provide special rates for homes with geothermal systems.
Durability
Because they use fewer mechanical components and because those components are sheltered from the elements, geothermal heat pumps are durable and highly reliable. The underground piping used in the system often has 25 to 50 year warranties, and geothermal heat pumps typically last 20 years or more.
Low Maintenance
Geothermal heat pump systems have fewer maintenance requirements than most other systems. When properly installed, the underground components are virtually worry-free. The components in the living space are easily accessible, which increase the convenience factor and helps ensure that the upkeep is done on a timely basis.
Year-Round Comfort
Like typical forced-air furnace or central air-conditioning systems, a geothermal system uses ductwork. A two speed geothermal heat pump is so quiet inside a house that users do not know it is operating. Geothermal heat pumps also improve humidity control naturally.
Federal AND STATE INCENTIVES
As part of the economic rescue bill (H.R.1424) passed in October 2008, a residential system installed and placed in service between January 1, 2009 and December 31, 2016 was previously eligible for a tax credit equal to 30% of the installed cost of the system up to a cap of $2,000 for a single residence.
The Stimulus Bill signed in 2009 by President Obama improves that tax credit and removes any cap from the incentive. A homeowner is no longer limited, and may collect the full 30% of the installed system cost as a tax credit for systems that are installed after January 1, 2009.
Federal
Recent Congressional legislation has improved the tax credit for the installation of residential geothermal heat pumps. With the new laws, a residential customer who installs a geothermal heat pump may be eligible for a tax credit of 30% of the installed cost of the system, with no limit in place.
Geothermal heat pumps are a cost-effective solution to reducing a home's reliance on fossil fuels by harnessing the natural power of the earth to both heat and cool one's home all year long. The government strongly encourages homeowners to invest in renewable energy technology, and these incentives make owning your own heat pump system more affordable than ever.
Residential Credit Provisions
- The system must meet ENERGY STAR requirements in effect at the time the system is completed.
- The system must be in the taxpayer's residence (not limited to primary residence).
- There are no specific requirements for the contractor job invoice for the installation of the geosystem. However, it would be helpful if the invoice states "Geothermal Heat Pump" and that it "exceeds requirements of ENERGY STAR program currently in effect."
- The taxpayer has to file IRS Form 5695 to receive the credit.
State
Many utility companies throughout the state offer large rebate incentives and/or reduced utility rates for residents who use a geothermal system to heat and cool their home.
With so many incentives in place, it has never been easier or more affordable to put geothermal technology to work in your home, lowering your energy bills and saving you money everyday of the week. Contact K&E Distributing today to discuss geothermal heating and cooling for your home.
More information on federal and state energy incentives is available at www.dsireusa.org and www.irs.gov