Economic Incentives for the use of Geothermal Systems
Geothermal HVAC Federal and State Incentives
Benefits that currently are available to owners and operators of a buildings with geothermal systems will significantly contribute to 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. Additionally, the Federal tax credit of 10% of a system cost is another incentive currently available.
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.
New Incentives for commercial building retrofits
New Geothermal Heat Pump Incentive for Businesses
The Efficiency Pilot Program is now offering incentives for business and public sector customers seeking to improve the efficiency of their existing facilities through the installation of a geothermal heat pump system. Customers with pre-approved projects will be eligible to receive cash rebate based on a system capacity up to 50% of project cost. For a detailed explanation and rebate cap amounts please call our office to discuss.
- Geothermal Energy Solutions is approved ComEd Energy Efficiency Business Trade Allies, have the Illinois Commerce Commission Energy Efficiency Installer certification, and the GAOI design and installer accreditations.
When analyzing the cost of a geothermal system there are important factors that needed to be addressed –initial installation cost- saving/efficiency – should be considered as well as another major parameter – the system’s long-term operation expenses. 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 ductwork 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 source of thermal energy for the life of the building, the conduit for the sustainable energy transfer from the ground to the heat pump to the building HVAC.
For new construction or a retrofit, the initial incremental cost of equipment can be offset withy the available incentives. The payback period due to a reduced annual operational expensed for utilities and management can be surprisingly short. After that, building owners will benefit from a lifetime reduced operational expenses.
EPA found that geothermal heating and cooling (geothermal heat pumps) 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.