If you’ve ever considered getting a geothermal heating and cooling system for your home, you should know that a generous federal income tax credit for geothermal heat pumps is available through the end of this year. While a range of energy-efficiency tax credits that were enacted several years ago have expired, those for geothermal and solar energy remain in effect through 2016.
How Does a Geothermal Heat Pump Work?
Residential geothermal systems have three main components: a heat pump air handler unit inside the house; a standard air distribution system in the house with a fan, ductwork and registers; and a network of pipes buried underground, or submerged in water, with a water/antifreeze solution circulating inside. The “loop system” either can be buried vertically or horizontally depending on the size of your home’s lot and characteristics of the soil.
Several feet underground, because of the earth’s insulating qualities, the temperature remains relatively mild throughout the year. A geothermal heat pump exploits these moderate temperatures during the heat-exchange process. Whereas a standard air-source heat pump extracts heat from cold outdoor air for indoor heating, and releases indoor heat into the warm outside air for indoor cooling, a geothermal heat extracts heat from the ground and brings it inside for heating. For cooling, it rejects heat from inside back into the ground. This saves ample energy because it requires far less energy to exchange heat with the moderate-temperature ground than with the cold and hot outside air in winter and summer.
Typically, geothermal systems are much quieter than standard heat pumps and A/Cs, and they tend to last longer.
How Does the Federal Tax Credit Work?
For a qualifying Energy Star-rated geothermal heat pump, a homeowner can take a 30 percent tax credit on both purchase and installation. The credit can be taken on either a first or second residence.
For more information on installing a geothermal heat pump in your Dayton area home, please contact us at Ace Hardware Home Services.
Our goal is to help educate our customers in Dayton, Ohio about energy and home comfort issues (specific to HVAC systems).
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