Tax Credits Still on for Ground Source Heat Pump Systems

The tax credits available for ground source heat pump systems or geothermal systems (as they are often called) are still available. Actually the tax credits now have no cap. Earlier, when the Stimulus Bill was initially passed, there was a cap on ground source systems. Now, 30 percent of the entire cost of both equipment and installation is eligible for the tax credit. You should consult with your tax advisor for details and eligibility.

Ground source heat pumps work much in the same manner as the above-ground heat pumps do. The difference is that when outside air temperature is 10 degrees, the below ground temperature is between 50 to 55 degrees. The actual temperature is relative to the latitude above the equator. So, when extracting heat from air at 10 degrees, a heat pump works harder and requires more energy. Extracting heat from the earth at more than 55 degrees consumes far less energy.

Since the temperature is constant at a certain point below ground, the ground source heat pump works less and requires less energy in both winter for heat and summer for cooling.

If the instalation costs are $30,000.00 with a 30 percent rebate, the homeowner will get a $10,000.00 credit.  The incentives are great. The tax credit combined with lower energy bills year after year makes geothermal heating and cooling a very tempting deal.

Estimates from the EPA demonstrate that energy consumption is 30 to 40 percent less by using a ground source heat pump as opposed to the above-ground heat pump.

Lower energy bills over the years combined with the generous tax credit are definitely worth consideration for many. Those building new homes are especially looking in to the benefits of geothermal home comfort. The systems are estimated to last for 25 years or more for all above ground components, 50 years for the loop system below ground.

Information about these systems is available from Rodenhiser. Their expert staff can answer any questions about  ground source heating and cooling.

Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems).  For more information about ground source heat pumps and other HVAC topics, download our free Home Comfort Solutions Guide.

Rodenhiser Plumbing, Heating and Air Conditioning serves the Route 495/128 area of Massachusetts. To get started, check out our website or see our current promotions.

This entry was posted in Heat Pumps and tagged , , , , , , , , , . Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.

Post a Comment

Your email is never published nor shared.

You may use these HTML tags and attributes <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

What is 0 + 0 ?
Please leave these two fields as-is:
  • Click Here, For
  • » Call Us: 1 (508) 306-4460

  • Recent Posts

  • Topics



  • HVAC Service - Massachusettes
  • About Andy

    Andy Rodenhiser Andy Rodenhiser is the 4th generation owner of Rodenhiser Plumbing, Heating and Air Conditioning. Andy is personally interested in serving the local community, is involved in local issues and organizations, and serves as the current Chairman of the Medway Planning and Economic Development Board as well as Treasurer of Air Conditioning Contractors of America’s New England Chapter. Rodenhiser Plumbing, Heating and Air Conditioning is currently working with Habitat for Humanity to erect a single-family home in Medway. Andy places a high value on personal integrity, and strives to ensure that Rodenhiser Plumbing, Heating and Air Conditioning is viewed as a reputable company within our service area. During his free time, Andy enjoys the outdoors and is an avid hiker and outdoorsman.... More »