Geothermal HVAC Federal and State Incentives

Benefits that currently are available to owners and operators of buildings with geothermal systems will significantly contribute to the bottom line of profitability that geothermal systems can deliver.

There are a number of economic incentives that were created by the Federal Government for new construction as well as retrofit projects implementing geothermal HVAC.

Accelerated tax credit structure allows property owners not only to shorten the payback period but also to receive significant financial benefits over the lifetime of a building.

Each project shall be evaluated for potential financial benefits from Federal, State and local municipalities.

Please contact us to discuss the specifics of your application. We are happy to discuss and quantify the potential cost savings opportunity for you.

Cost

When analyzing the cost of a geothermal system there is an important factor – saving/efficiency – should be considered as well as another major parameter – the system’s long term operation. Over the useful life of the building the drastic savings from lower operational costs of geothermal heating and air-conditioning systems will create additional cash flow and that will result in building value increase far over the initial incremental cost of HVAC system modification.

When comparing the initial cost of the systems, it is important to understand that distribution duct-work and controls will be the same for geothermal and for conventional system. The main cost difference for geothermal system will be cost of drilling and placing the underground loops – the conduit for the sustainable energy transfer from the ground up.

For new construction, the impact of the increased monthly payment as a result of the incremental cost of geothermal systems added to the mortgage will be easily offset by the cost of energy saved with geothermal system. In the contrary to any other system in the building the geothermal HVAC system starts to save environment, energy and money for the owner from day one.

Environmental Benefits:

EPA found that geothermal heating and cooling systems can reduce energy consumption — and corresponding emissions—by more than 40% compared to air source heat pumps and by over 70% compared to electric resistance heating with standard air-conditioning equipment.

Geothermal systems use the Earth’s energy storage capability to heat and cool buildings, and to provide hot water. The Earth is a huge energy storage device that absorbs 47% of the Sun’s energy – more than 500 times more energy than mankind needs every year – in the form of clean, renewable energy. Geothermal systems take this heat during the heating season at an efficiency approaching or exceeding 400%, and return it during the cooling season.