An area of HVAC you might not have heard much about, but has been a great fit for certain customers in the Indianapolis area, is the geothermal heat pump. 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.
According to the Federal Government Energy Star Website, geothermal heat pumps can reduce cost by upwards for 40x standard heat and cooling units. As well, a geothermal heat pump can reduce costs related to hot water heating.
As you might imagine with such a great benefit, there are great costs. The biggest is the sticker price. According the Consumer Energy Center, you should expect to pay about $2500 per ton of output. That is before you add in the cost of drilling — “geo” does demand that you get your heat from the earth — which can run upwards of $10 – $30k.
The government has given a huge incentive for those interested in a geothermal unit, that has made a dramatic impact. There is a 30% tax credit for qualifying systems, with no cap. Meaning if it costs $30,000, you’ll receive nearly $10,000 back in a tax credit. Which for my non-accounting friends out there, is different than a deduction in that you would put + after you determine your taxes, and end up with whatever refund or amount owed, rather than just getting some % of the amount that reduced your taxable income.
So, if this sounds like something you’re interested in finding out more information about, we would love to talk. Clearly with the numbers involved, this is a serious investment. But, for the right family and the right home a geothermal heat pump could be a great way to reduce your monthly bills, and potential save thousands over the next couple decades.