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”

The Importance of Sizing a Geothermal Heat Pump

A geothermal heat pump is an inexpensive, renewable way of heating and cooling your home by using energy from the ground. However, before you invest in a geothermal system, it's important to get the correct size for your space. Otherwise, you could end up wasting energy instead of saving it. Let's look at why sizing a geothermal heat pump is so important, and how to do it properly.

How a Geothermal System Works

No matter what the weather is like outside, the temperature about 10 feet underground is a constant 50 to 60 degrees. A geothermal system buries a loop of pipe beneath the ground, then circulates liquid through it to absorb that heat energy and bring it into the home. During the summer, a geothermal heat pump extracts heat energy from indoor air and uses the ground as a heat-sink to dispose of the unwanted heat. The cool air is the result of this heat extraction.

Problems With Improper Sizing

If you size your system too small, it won't have the capacity to heat or cool the air as it should. It has to work harder to do the job properly, using extra electricity and putting undue stress on system components, which can cause unnecessary damage and ultimately shorten system life.Sizing a geothermal heat pump too large causes problems as well. A system that's too big will cycle on and off too frequently, which also causes damage and uses excess electricity. It also creates a disparity in temperature from one area to the next and can fail to dehumidify the space, making things wet and clammy.

So what size should your geothermal system be? It depends on the size of your home, as well as climate, soil type and other factors. Talk to a professional HVAC contractor, who can measure these factors and make sure your geothermal system and piping loop are the proper size for your home.

For help sizing a geothermal heat pump for your home, 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: “John T Takai/Shutterstock”

Get a Federal Tax Credit for Installing a Geothermal Heat Pump

A geothermal heat pump is the most energy efficient and durable system you can use in your home and a federal tax credit exists to help you offset the higher cost of these systems. A heat pump cools and heats by moving heat from one place to another. While air-source heat pumps depend on outdoor temperatures to harvest or deposit heat, a geothermal system executes this process by using underground resources.

Since temperatures vary little underground throughout the year, the geothermal system is more efficient at both heating and cooling. They use a loop field that's buried deeply underground as the resource for depositing heat in the summer and the resource in the winter. It's the loop field that adds the extra cost to a geothermal heat pump, and the tax credits will help offset this expense.

Homeowners who install a qualifying system can deduct its entire cost, with some exceptions, to receive a 30 percent credit on federal taxes. This credit applies to primary and secondary homes, but not rental properties. It even applies to new home construction. The program is so generous because geothermal systems have a low carbon footprint. The loop field can last 50 years or more, and the heat pump itself may last 25 years.

The federal tax credit won't cover the cost of the ductwork or a backup heating coil, but it will cover the cost of the desuperheater, an upgrade that takes the heat from your home and uses it to heat your water.

A geothermal system must meet the requirements for the Energy Star program to qualify and it must be installed on or before December 31, 2016. You can deduct the entire cost of the system, except for the ductwork and heating coil, to receive the credit. There's no cap on the amount you can deduct for the loop field and the remaining heat pump and desuperheater if you opt for this upgrade.

If you'd like more information about a geothermal heat pump and the federal tax credit, contact Air Assurance, serving Broken Arrow homeowners with HVAC services 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). 

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Your Geothermal Heat Pump: How Long Will It Last?

When considering the high cost of installing a geothermal heat pump in the Tulsa area, the fundamental question of the system's longevity and maintenance costs needs to be addressed. The answer is simple: geothermal installations last a long time, and they require less maintenance than comparable gas or electric systems.

The heart, and primary cost of the system is the geothermal loop. If you choose a horizontal system, your contractor needs to remove a considerable amount of topsoil during the installation. After digging through four to six feet of red Oklahoma dirt, durable plastic pipe is installed and your yard is reconditioned.

The piping in the geothermal loop is rated to last 25-50 years, so you'll likely never need to replace it. Vertical geothermal loops cost more, as a deep hole needs to be drilled. But, if you have sensitive landscaping or limited space it might be the option for you. Since it's buried underground, the ground loop rarely needs maintenance—the high-density polyethylene plastic tubing is fused together, and shouldn't leak. Unlike exterior air conditioners and heat pumps, the ground loop can't be damaged by the elements or stolen.

In your home, the old inefficient furnace is removed and replaced with a compact, durable geothermal heat pump. This unit uses your existing duct work to heat and cool your home. It needs some of the same preventive maintenance that a traditional heater needs, like changing the air filters, but geothermal heat pumps are rated to last 20 or more years when cared for correctly.

Although the entry cost is high, a geothermal system is a long-lasting solution to expensive energy and HVAC maintenance costs in Broken Arrow. There are also intangible benefits, like less noise and consistent, comfortable temperatures in your home.

If you have more questions about geothermal energy, or if you're ready to take the next step, Air Assurance in Broken Arrow can help.

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). 

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4 Geothermal System Benefits That May Persuade You to Install Your Own

4 Geothermal System Benefits That May Persuade You to Install Your Own

Installing a geothermal system for heating/cooling your Tulsa area home is a good idea and could represent one of the more important decisions you make regarding your home's energy bills. With geothermal heat pumps considered as one of the most efficient and economical means of conditioning a home's interior, installations here in northeastern Oklahoma have soared.

Efficiency and economy are two outstanding benefits of a geothermal system, whether water-source or ground-source. When in heating mode, these unique heat-pump systems absorb heat from the ground or water (surface or below-ground) and transfer it to your home's interior. Because no heat is being created and no combustion occurs, heating efficiency can be as much as 300-400 percent greater than with a top-of-the-line furnace. It's also safer, with no carbon monoxide or other negative environmental effects being produced.

In cooling mode, heat is absorbed from inside your home and transferred outside, either to the ground or water source, depending on the type of geothermal system being employed. This operation is the same as with conventional air-source heat pumps, with the exception of where the heat goes once it's been removed from your living area.

Because the earth (below the frost line) and water bodies (below freezing depth) remain at a fairly constant temperature, they are a perfect source of heat in winter and an ideal repository for heat in summer. The ground loops installed to facilitate the heat transfer promoted by geothermal system operation are typically made from high-density polyethylene or copper piping and have a life-expectancy of up to 50 years.

Here are four major benefits to consider:

1. High efficiency and low, economical operating costs.

2. Low environmental impact, with zero CO, CO2 or other greenhouse gas production.

3. Quiet operation due to no need for outside compressor or fan units.

4. Less maintenance required due to fewer moving parts, leading to longer life expectancy (25-50 years).

Since being founded in 1985, Air Assurance, located in Broken Arrow, has grown to be the largest HVAC service-provider in Metro Tulsa. Please contact us for further information on geothermal or advice on any other indoor air comfort matters.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

When Installing a Heat Pump, Let These Guidelines Show You the Way

When Installing a Heat Pump, Let These Guidelines Show You the Way

A heat pump is an economical way to keep your home cool in the summer and warm in the winter, especially in Midwestern climates. Instead of converting heat to fuel like combustion furnaces, heat pumps simply move heat. The performance of your heat pump relies on selecting the right type and size for your home and expert installation. Whether you use an air-source or geothermal heat pump, work with a professional HVAC technician to avoid problems and get the best results. When installing a heat pump, here are a few things to do first.

• Make sure your home is properly insulated with correct duct work and energy-efficient windows. If ducts are in the attic or crawl space, insulate with R-8 insulation to provide the best barrier. Install ducts inside your insulation to save energy. If your home is energy-efficient, you can install a smaller heat pump unit with shorter duct lengths.

• When installing new ducts, you can specify that measured air leaks should be below 10 percent of the airflow. A professional can reduce air leakage to below 5 percent with skill and careful planning and workmanship. Keep air leakage as low as possible for maximum efficiency.

• Do not use building cavities for your ducts. They typically leak, causing moisture problems, uncomfortable airflow and energy loss.

• After duct work is installed, test it by pulling on it to ensure that it's sealed well and fastened securely. Duct joints should be sealed with mastic.

• When installing a heat pump, put it on the north side of the house where it tends to be the shadiest. If this isn't possible, choose a shady place without any obstructions at least 10 feet from each open side and the top of your heat pump unit.

• For optimal heating and cooling efficiency, ask your technician or contractor to put a return register in each room of the house.

For more expert advice on installing a heat pump or other home comfort needs, please contact us at Air Assurance Heating, Air Conditioning & Plumbing in Broken Arrow, OK., servicing the greater Tulsa Metropolitan area 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

Geothermal Heat Pump: Which Type Is Best For Your Tulsa-Area Home?

Heating and cooling your home can seem like a constant battle against nature.  But nature itself provides a sustainable source of temperate air right in your own backyard.About ten feet below ground, the temperature year-round is near-constant at about 54 degrees.  This is significantly cooler than the summer highs, and warmer than the winter lows.  One of the most eco-friendly heating and cooling systems available, a geothermal heat pump uses this phenomenon to reduce the work your heater and your air conditioner have to do.Geothermal heat pumps route air through buried pipes called ground loops, allowing the loops to balance their temperature with the earth below the frost line.  This gives the heating and cooling systems a big head start on their temperature adjustment, making for impressive efficiencies.  Because of their high efficiency and environmental friendliness, geothermal heat pump systems are eligible for hefty tax credits.The geothermal loop best suited for your home will take full advantage of available terrain features.  Different kinds of ground loops include:

• The horizontal loop. Often the best option for homes with large yard space, as the trenches are among the shallower holes that can be dug for the ground loop system. A certain amount of space is required for these, making them less suitable for small properties.

• Pond loops. A variation on horizontal loops, these take advantage of bodies of water such as ponds. This is only practical for bodies of water which meet certain depth and size standards, however.

• Vertical loops. Though they require much deeper trenches than horizontal loops, vertical loops have a much smaller horizontal footprint, making them more practical for small properties and densely-built areas.

• Open-loop and groundwater systems. Where there's an abundant supply of groundwater, this can be used as the heating/cooling fluid in place of air.

While this article can give you an idea of the options available, the best way to discover which geothermal heat pump system is right for your home is to talk to an expert.  If you'd like to learn more, feel free to 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). 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

Tax Credits Still On For Geothermal Heat Pumps

The federal tax credit for installing a geothermal heat pump in your home is still on.  You will save 30 percent of the total cost for your new system, including the installation, with no limit to your savings.How does the system work?  Geothermal heat pumps operate much like any heat pump, except that they extract heat or cold from the ground beneath your home.  Below the surface the ground temperature stays very constant year round.  It is cooler in the summer, warmer in the winter.  By looping coils through the ground you can both warm and cool your home at a lower cost.  This is a much more environmentally safe way to heat your home.  There is no burning of gas or other energy sources which put noxious fumes into the air.  And while there is a small use of electricity, it is nowhere near as great as the electricity required to run an electrically heated or cooled home.  Electricity that is frequently produced by coal fired generating plants.  It is, in fact, a very green answer for those of us that are worried about the planet.Geothermal heat pumps are an efficient and cost effective way to control the heating and cooling of your home, even here in the Tulsa area.How does the tax credit work and why is it better than a tax deduction?  The federal government has recently extended the tax credit for installing one of our geothermal heat pumps.  A tax credit allows you to deduct the entire amount of the credit directly from your tax bill.  No matter what your tax rate, you still get the entire credit applied to your tax bill.A tax deduction, on the other hand, only allows you to reduce your taxable income. If your top tax rate is 25 percent, you then reduce your tax bill by only 25 percent of the deduction.Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems).  For more information, click here. Air Assurance services Tulsa, Broken Arrow and the surrounding areas.  To get started, check out our website or see our current promotions.