Cooling and heating your home using the earth under your feet is a very green way to save on your energy bills. Geothermal heating and cooling systems use a field of underground pipes, along with a heat pump, to heat and cool your home using the natural temperature stability four to six feet underground. While these systems are relatively expensive to install, federal tax credits are available to defray the expense.
A properly sized geothermal heat pump system should use 25 to 50 percent less energy than a traditional system. A geothermal system also lasts longer than a standard heat pump, A/C or furnace. The underground loop field is usually warrantied for 25-50 years, while the heat pump itself will be around for 20 years or more. A geothermal heat pump is so durable because it has fewer moving parts, and unlike an air-source heat pump or A/C, has no outside unit that’s exposed to the elements year round. Due to the continuous operation of a heat pump, the temperature of your home will fluctuate less.
However, the cost of installation can be relatively expensive due to the amount of excavation (or drilling) and new equipment required. Thankfully, the federal government has a generous tax credit for qualifying geothermal cooling and heating systems. In addition to drastically reduced energy bills over the long term, you’ll get considerable financial help at the outset.
Details About the Federal Geothermal Heat Pump Tax Credit:
- According to the U.S. Department of Energy, you’ll be credited 30 percent of the cost of the unit and installation, and there’s no upper limit.
- The credit can be used to add a geothermal heat pump to your existing home, or for new construction.
- You can use the credit on a second home, but you can’t use it for a home you plan to rent out.
- All Energy Star certified geothermal heat pump are eligible for the tax credit.
- The tax credit expires on Dec. 31, 2016, unless it gets extended or terminated.
Indiana also has a property tax deduction available when you install a geothermal heat pump. You can find the form at the Indiana Department of Local Government Finance.
Once you’ve done that math and decided that a geothermal air conditioner might suit your needs in the Indianapolis area, please contact us at Mowery Heating, Cooling and Plumbing.
Our goal is to help educate our customers in Brownsburg, Indiana and surrounding areas about energy and home comfort issues (specific to HVAC systems).
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