Geothermal Heat Pump Installation in Indianapolis

Geothermal Heat Pump Installation in Indianapolis – A New Level of Efficiency

What are Geothermal Heat Pumps?

An area of HVAC you might not have heard much about is the geothermal heat pump, which works well for certain homes in the Indianapolis area. A geothermal heat pump, as the name suggests uses the earth as a heat source to keep your home warm in the winter, and uses the earth as a heat sink in the summer, keeping your home cool.

How Much Money Does Geothermal Save?

According to the Federal Government Energy Star Website, geothermal heat pumps can reduce heating and cooling costs by up to 40% compared to standard units. As well, a geothermal heat pump can reduce costs related to hot water heating.

How Much Does Geothermal Heat Pump Installation Cost?

As you might expect with significant energy savings, the upfront costs are substantial. According the Consumer Energy Center, you should expect to pay about $2500 per ton of output. That’s before you add in the cost of drilling—which can run $10,000 to $30,000 or more.

Geothermal Heat Pump Tax Credit

The government offers a significant incentive for those interested in a geothermal unit. There is a 30% tax credit for qualifying systems, with no cap. If your system costs $30,000, you’ll receive $9,000 back as a tax credit. A tax credit is different from a deduction—it directly reduces what you owe in taxes, rather than reducing your taxable income.

Geothermal Heat Pumps in Indianapolis

If you’re interested in learning more information about geothermal systems, we can help. With the numbers involved, this is a serious investment. But for the right home, a geothermal heat pump could be a good way to reduce your monthly bills and potentially save thousands over the next couple decades.