Geothermal is one of the most efficient heating and cooling systems on the market. These systems work by transferring heat, depending on the season, back and forth between your home and underground or a large body of water using a loop system. If you are looking for green energy with lower heating and cooling costs, this is a great option.
One downside to using geothermal is the upfront cost of the system. The installation requires loops to be placed in lakes or drilled underground. Costs can vary depending on the size system you need and the location of your home.
Geothermal may not be the best choice for everyone, but it certainly is an option that should be considered, especially now while there is still a federal tax credit. The federal tax credit was 30% of the system’s cost in 2019. It has reduced to 26% this year and will be reduced again to 22% in 2021 before going away completely, if nothing changes at the federal level. In addition to the tax credit, Harrison REMC is offering a geothermal rebate incentive of $1,450. This type of system would be an excellent option for someone intending to stay in their home long term who wants to have lower heating and cooling energy consumption.
Geothermal systems are wonderful for the utility’s power generation because they use less energy more consistently. This is especially helpful in the winter when typical air-to-air heat pumps or electric furnaces that use resistant heat can cause a lot of costly demand spikes. Geothermal systems get their heat from deep in lakes or in the ground. Since the temperature underground does not change when the air temperature outside drops, these systems use less resistant heat resulting in fewer spikes. When operating our personal vehicles, we all prefer lower cost highway driving to avoid the more costly stop and go city driving. As such, our power plant is more efficient when our energy use is more consistent, without the spikes in demand.
Geothermal systems not only use renewable energy from the Earth, but they reduce demand resulting in less emission, making this option very environmentally friendly. If you have any questions about the federal tax credit you can go to www.energystar.gov.
For more information, contact me, and I can assist with your energy use decisions to help navigate what might work best for you.