There’s Still Plenty of Time to Get Tax Credits on Geothermal Heat Pumps

While many of the federal tax incentives for energy-efficient residential HVAC systems expired a couple of years ago, the tax credit for geothermal heat pumps (and home solar systems) remains in effect through 2016. This means homeowners still have a year to write off a big part of their investment for this super-efficient technology, the geothermal heat pump.

How Does a Geothermal System Work?

Geothermal systems start with a network of pipes buried on your property, or submerged in a body of water. The ground system can either be a shallow horizontal loop field or a very deep vertical loop field, depending on what sort of lot your house is built on, among other factors. A liquid solution — usually a mixture of antifreeze and water — serves as the medium of heat exchange.For heating, the solution circulates in the pipes, extracting heat from the ground, which is a moderate 50-60 degrees. The heat energy is transferred from the water solution to a heat pump unit inside the house, and then transferred into indoor air, which is distributed via a blower fan and ducts, just as with any heat pump system. Cooling with a geothermal heat pump works the same way, except that heat energy extracted from the house is transferred to the water-antifreeze solution, and then "rejected" into the ground.

Why is this So Efficient?

The energy used in a standard air-source heat pump is mainly used to extract heat energy from cold air for heating, or to release heat energy into very warm air for cooling. When the heat is being released from, or deposited into, ground or water that's neither hot nor cold, much less energy is required. This is what happens with a geothermal heat pump.

How Do the Tax Credits Work?

The energy-efficiency federal tax credit equals 30 percent of the cost of purchasing and installing an Energy Star-qualified geothermal heat pump in your home or second residence (not rentals).

For more information on installing an energy-saving geothermal heating and cooling system in your Broken Arrow area home, please contact us at Air Assurance.

Our goal is to help educate our customers in the Tulsa and Broken Arrow, Oklahoma area about energy and home comfort issues (specific to HVAC systems). Credit/Copyright Attribution: “karen roach/Shutterstock”

Going Geothermal: Clean, Efficient Cooling for Tulsa's Hot Summers

Going Geothermal: Clean, Efficient Cooling for Tulsa's Hot Summers

Homeowners who strive for a high level of energy efficiency and longevity with their HVAC systems often choose geothermal heat pumps (GHPs). These systems top the list for both and provide all the cooling you need for Tulsa's long and hot summers. A GHP uses underground thermal energy to provide both cooling and heating by exchanging heat. In the summer, the GHP sends it underground, and in the winter, it removes the heat from the ground.A GHP consists of an underground loop field and an indoor air handler. Heat from the home is conveyed through refrigerant in the air coil to the underground loops, where the heat is absorbed by the earth. The compressor turns the refrigerant back into a liquid that is recirculated back to the air handler. It flows through the evaporator coil, and once again, picks up the excess heat in your home. The cycle continues until your home reaches the thermostat's setting.These systems offer much higher efficiency than standard air-source heat pumps or air conditioners because the temperatures underground are much cooler than the outdoor air and remain stable day and night. If you combine a desuperheater with the GHP, you can heat your water during the summer with the waste heat from your home.Besides conditioning bills that may be as much as 60 percent lower, your geothermal system lasts longer than conventional cooling systems. The loop field can last 50 years or more and the air handler 25 years with routine maintenance.These systems are so efficient and advantageous for homeowners that a federal tax credit exists to cover 30 percent of the cost and installation of qualifying systems. It's valid through the end of December 2016 and there's no upward limit on it.GHPs cost more than standard heat pumps or air conditioners, largely because of the loop field's installation, which varies based on the size of GHP you need, the yard's size, landscaping and soil conditions.If you'd like to learn more about a geothermal heat pump, contact Air Assurance. We've provided HVAC services for Tulsa and Broken Arrow since 1985.Our goal is to help educate our customers in the Tulsa and Broken Arrow, Oklahoma area about energy and home comfort issues (specific to HVAC systems).  Image courtesy of Shutterstock

The Geothermal Heat Pump: Still Eligible For That Hefty Tax Credit

Geothermal heat pumps are highly efficient heating and cooling systems that operate cleanly, quietly and economically. If you are considering installing a geothermal heat pump in your Tulsa-area home, remember there are still substantial energy tax credits available from the federal government that will help offset the cost of the system.By investing in geothermal heating and cooling, you are installing a home-comfort system that is astonishingly efficient, returning three or four units of heat for each unit of electricity the system consumes. This sounds like a physical impossibility, but it works because geothermal heat pumps move existing heat rather than burn fuel to generate it.Geothermal systems can slash energy costs by up to 70 percent. System prices vary based on factors such as the type of system and the features of the home where it is installed, but it is not uncommon for geothermal heat pump systems to cost between $10,000 and $20,000.In an effort to make geothermal heating and cooling more accessible, and at the same time promote energy conservation, the U.S. government offers a substantial income tax credit to homeowners who make the switch to geothermal. These credits can be applied directly to a homeowner's income taxes for the year in which the geothermal equipment was purchased and brought into service.Major points to keep in mind about the tax credits include:

• Credits amount to 30 percent of the system's cost, with no upper limit.

• System must be placed into service by Dec. 31, 2016.

• Credits apply to both the cost of the heat pump and the installation.

• Credits apply only to equipment for a primary residence or secondary home; rental units do not qualify.

• Credits are valid for geothermal systems purchased for either new or existing homes.

Federal tax credits expire in 2016. Check the Database of State Incentives for Renewables & Efficiency for information on other incentives programs for Oklahoma.For more than 30 years, Air Assurance been a leading HVAC sales, installation and service provider to customers in and around Tulsa. Contact us today for more information on geothermal heat pump systems and how one can benefit you.Our goal is to help educate our customers in the Tulsa and Broken Arrow, Oklahoma area about energy and home comfort issues (specific to HVAC systems). Image courtesy of Shutterstock

Factors To Consider If You Want To Make The Switch To Geothermal

Considering making the switch to a geothermal heat pump system?If so, you are probably making a wise decision. Geothermal, or ground-source, heat pumps offer many benefits, and their exceptional energy efficiency and durability make them a good long-term investment. However, there are a few factors to weigh before making a final decision on which type of system to install.Before making the switch to geothermal, you should first consider:

• The amount of land available - Geothermal heat pumps are energy efficient because they can pump heat to or from the ground, utilizing long loops of buried pipe to do so. Though it is possible to fit these pipe loops in almost any size yard, a larger land area allows the loops to be buried horizontally just a few feet underground. A small yard may require the loops to be sunk vertically, up to several hundred feet deep--which increases digging costs.

• Landscaping costs - Installing the loops horizontally may be cheaper, but if digging trenches across your yard would interfere with existing landscaping, a vertical installation (which disturbs little of the surface soil) may still be your best bet.

• The type of soil - Some kinds of soil are better at transferring heat between the pipes and the ground, which means less pipe (and less digging) is required.

• Nearby water sources - If you have a pond or lake next to your house, it may be possible to simply submerge the pipe loops under water. This is generally much cheaper than digging and burying the loops under your yard.

• Open loop options - Similarly, an open loop system minimizes digging by simply pumping water to and from the body of water (or the ground itself, if your property supports groundwater wells). This eliminates the long loops of pipe are otherwise needed.

• Tax credits - When doing the math on a ground-source system, remember that the 30 percent tax credit on geothermal installations is still in effect (through 2016). Also available, are rebates from PSO, or other local utility providers.

If you have questions about any of this, feel free to contact the heat pump experts at Air Assurance in Broken Arrow. We would be happy to help.Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems). Air Assurance services Tulsa, Broken Arrow and the surrounding areas. Visit our website to see our current promotions and get started today!