Geothermal Heating & Cooling
Feder Keeps Geothermal Systems Running Smoothly
Want to save on monthly energy bills and your energy consumption? Geothermal heating and cooling is a powerful solution! You can take advantage of one of the most overlooked resources: the heat underneath your home. Though the temperatures outside may dramatically fluctuate throughout the year, the temperature of the ground under your home typically remains the same. Even if it is freezing above ground, you can still benefit from the heat underneath your house.
How Do Geothermal Systems Work?
One of the great things about this type of system is that it can be used year-round. A geothermal system works by circulating heat between your house and the ground, capitalizing on this natural resource. During the winter, the system will bring warmth from the ground and circulate throughout your house. This is similar to how a heat pump works!
When it’s summertime, the system can be used in reverse. The geothermal system will take the heat from inside your house and move it underground, where it will stay cooler. The fluid that creates this heat transfer, known as cooler refrigerant, will then be circulated throughout your house, allowing cool air to blow through.
Great for the Environment, Better for Your Budget
Did you know that geothermal systems can reduce your utility expenses by as much as 80 percent? That means you get improved comfort at an affordable price—much less than a typical electric or gas-powered system.
Some of the advantages of geothermal systems include:
- Significantly reduces your energy bills
- No burning of fossil fuels
- Year-round, environmentally friendly comfort
- Local rebates and tax credits available
- Minimal maintenance and long lifespan
- Quiet, clean, and safe inside your home
Federal Rebates & Tax Credit
The residential energy efficient property credit allows for a credit equal to the applicable percent of the cost of qualified property. Qualifying properties are solar electric property, solar water heaters, geothermal heat pumps, small wind turbines and fuel cell property. Only fuel cell property is subject to a limitation, which is $500 with respect to each half kilowatt of capacity of the qualified fuel cell property. Generally, this credit for alternative energy equipment terminates for property placed in service after December 31, 2021. The applicable percentages are:
- In the case of property placed in service after December 31, 2016, and before January 1, 2020, 30 percent.
- In the case of property placed in service after December 31, 2019, and before January 1, 2021, 26 percent.
- In the case of property placed in service after December 31, 2020, and before January 1, 2022, 22 percent.
There is no maximum amount of credit offered, as long as it's 30% of your installation fee, and the tax credit applies to any property using a geothermal pump, so you can install a geothermal system in a rental home or a vacation home and still take advantage of the tax credit. It can be combined with other energy efficiency tax credits, and can even be carried forward to the next year if your tax liability isn't great enough when you install your system. The one restriction is that it only applies to Energy Star rated systems, so let's discuss your options and find the perfect sustem for your needs.
The sooner you take advantage of geothermal energy, the more you can save on your taxes! Want to learn more? Just give our geothermal heating and cooling experts a call.
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Contact us today at 507-642-3522 |
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