Up to 30% Tax Credit,
Take Advantage Now
The Energy Credit
In October 2008, geothermal heat pumps were added to section 25D of the Internal Revenue Code. This created a 30% tax credit for costs associated with qualified geothermal equipment "placed in service" through the end of 2016. Property is usually considered to be placed in service when installation is complete and equipment is ready for use. However, if the system is part of the construction or renovation of a house, it's considered placed in service when the taxpayer takes residence in the house.
- 30% of total system cost
- No limit to credit amount for 2009 and beyond
- Can be used to offset AMT tax
- Can be used in more than one year
- Can be combined with solar and wind tax credits
- Can be combined with energy efficiency upgrade credits
Geothermal Heat Pumps
Geothermal heat pumps (sometimes referred to as GeoExchange, earth-coupled, ground-source, or water-source heat pumps) have been in use since the late 1940s. Geothermal heat pumps (GHPs) use the constant temperature of the earth as the exchange medium instead of the outside air temperature. This allows the system to reach fairly high efficiencies (300%-600%) on the coldest of winter nights, compared to 175%-250% for air-source heat pumps on cool days.
While many parts of the country experience seasonal temperature extremes—from scorching heat in the summer to sub-zero cold in the winter—a few feet below the earth's surface the ground remains at a relatively constant temperature. Depending on latitude, ground temperatures range from 45°F (7°C) to 75°F (21°C). Like a cave, this ground temperature is warmer than the air above it during the winter and cooler than the air in the summer. The GHP takes advantage of this by exchanging heat with the earth through a ground heat exchanger.
As with any heat pump, geothermal and water-source heat pumps are able to heat, cool, and, if so equipped, supply the house with hot water. Some models of geothermal systems are available with two-speed compressors and variable fans for more comfort and energy savings. Relative to air-source heat pumps, they are quieter, last longer, need little maintenance, and do not depend on the temperature of the outside air.
Even though the installation price of a geothermal system can be several times that of an air-source system of the same heating and cooling capacity, the additional costs are returned to you in energy savings in 5–10 years. System life is estimated at 25 years for the inside components and 50+ years for the ground loop. There are approximately 50,000 geothermal heat pumps installed in the United States each year.
Geothermal Energy: The World's Greenest Heating and Cooling System
Looking for an efficient, cost effective, and environmentally friendly heating/cooling system? A geothermal heat pump is the greenest way to go. Learn the facts about geothermal energy.
- An EPA study of energy efficiency concluded geothermal energy is the most environmentally friendly heating/cooling system.
- The United States National Renewable Energy Laboratory concluded that geothermal energy is more efficient and cost-effective compared with conventional residential systems.
- Available everywhere in the United States, geothermal energy can be found underground virtually anywhere.
- Geothermal cost savings can be increased by geothermal energy incentives, available from federal, state, local, and utility sources.
Energy and cost savings of geothermal heat pumps will vary by region and type of conventional system they're compared with. But the energy cost of geothermal versus conventional HVAC systems will always be lower — and the geothermal system will always be greener.
Government Agencies
See what the U.S. Department of Energy and EnergyStar are saying about geothermal systems.
- EnergyStar has compiled a listing of approved geothermal products (PDF) including a wide range of WaterFurnace products that carry the EnergyStar emblem of approval.
- The Department of Energy Consumer's Energy Guide has data on geothermal system return on investment.
The EPA's State and Local Climate Change program (PDF) is focused on helping consumers take advantage of the high energy efficiency and low environmental impact of geothermal systems.
Consumer, industry, and scientific organizations
- The California-based Consumer Energy Center praises versatile geothermal energy.
- The Geothermal Energy Association discusses the benefits of renewable geothermal energy.
- Find out what the Union of Concerned Scientists has to say. Even major energy producers (power plants) recognize geothermal energy advantages (2.73 MB PDF) as a renewable source of power.
Greater Cincinnati Energy Alliance
http://greatercea.org/
Kentucky Home Performance:
http://www.kyhomeperformance.org
WaterFurnace Tax Credits:
http://www.waterfurnace.com/tax_credits.aspx
|
|
|
 |
