Ground Source, or Geothermal, heat pumps use the earth to transfer energy between your house and the ground, which makes for an efficient heating and cooling system. By transferring energy, instead of creating it, Geothermal HVAC systems are more efficient than traditional gas furnaces. Geothermal heat pumps provide precise temperature control at extremely efficient rates, regardless of the season. Unlike conventional heat pumps, the efficiency and capacity of a geothermal system are not affected by outdoor temperature changes.
A geothermal system consists of a heat exchanger (the 2,000 to 6,000 feet of piping buried or drilled into the ground), the ductwork (needed for most systems), and the indoor unit (just like a furnace or an air handler). We would typically recommend installing 2,000+ feet of pipe in the ground, a less expensive option. If this much space is not available, then we can drill 200 foot wells into the ground and run piping through the wells or drill horizontally under the house. Ables, Inc. has options for all lot sizes, ranging from 50 X 100 (5,000 sq foot city size lot) to houses on acreage.
Tax Credits & Incentives
In February 2018, the 30% tax credit was reinstated through 2019 and can be retroactively applied to installations placed in service on January 1, 2017 or later. Geothermal equipment that uses the stored solar energy from the ground for heating and cooling and that meets ENERGY STAR requirements at the time of installation is eligible for the tax credit. The credit has no limit and there's no limitation on the number of times the credit can be claimed.
US Tax Credits Through 2021
The energy tax credit can be combined with solar and wind credits as well as energy efficiency upgrade credits. To save the most on your installation, you'll want to act quickly—the 30% credit is available through the end of 2019, but it's set to decrease each year through 2021. The credit amount drops to 26% in 2020 and down to 22% in 2021.
Reduce energy expenses with geothermal heat pumps
Geothermal HVAC systems currently qualify for a federal tax credit that encompasses 30% of the installed cost. Geothermal heat pumps can save 60% of your heating and cooling costs versus a gas furnace and air conditioner, or about 40% of your heating and cooling costs versus a high efficiency heat pump.
Most geothermal systems will also provide you with about a third to half of your water heating needs while heating and cooling your home. This could save you another $100-$300 per year in utilities. The excavation needed may be a significant portion of the costs associated with the system as well as the size and scope of the system, but Ables, Inc. will also get this setup for you if needed.
Geothermal systems can be installed in almost any house, but costs are highly variable. Call Ables, Inc. for more information on geothermal heat pump installation and to schedule a site visit. If geothermal isn't for you, we can make strong recommendations for a new or replacement HVAC system that fits your indoor comfort needs.