Geothermal heating and cooling systems offer many long-term savings, through low energy usage and low expected maintenance and repair costs. They can also offer some short-term savings this year, though, thanks to available energy tax credits from the U.S. government.
The federal government has offered tax credits in recent years to homeowners who improved the energy efficiency of their homes by installing new HVAC equipment, insulation, water heaters or other such high-efficiency upgrades. Most of those tax credits were capped at a few hundred dollars, and the majority of the credits expired at the end of last year. However, the credits for some renewable energy sources, including geothermal and solar systems, are still in effect through the year 2016. And instead of being limited, the energy tax credits for geothermal systems have no cap, and can sometimes amount to thousands of dollars in tax savings.
When you have a qualifying geothermal heating and cooling system installed at your Indianapolis area home, 30 percent of the cost will be cut from your federal tax bill. That 30 percent applies not only to the cost of the equipment, but also to the total cost of having the equipment installed. That means you can start enjoying the long-term benefits of a geothermal system with a lower initial investment, and the resulting energy savings will pay off the investment in about a third less time.
To qualify for the energy tax credit, a geothermal system must meet or exceed certain efficiency ratings. For a closed loop system (which is by far the most common type), the efficiency requirements are:
- An EER (energy efficiency ratio) of 14.1
- A COP (coefficient of performance) of 3.3
Open loop systems have somewhat higher requirements: 16.2 EER and 3.6 COP. These requirements help demonstrate just how much energy geothermal units can save; a COP of only 3.3 means the system is 330 percent energy efficient.
At Mowery Heating, Air Conditioning and Plumbing, we can help you get a geothermal system installed and take full advantage of the tax credits and energy savings it provides. Contact us today with any questions.
Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems).
Mowery services the Brownsburg, Indiana and the surrounding areas. Visit our website to see our special offers and get started today!
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