NEW GEOTHERMAL TAX CREDITS!

How has the new Stimulus bill affected the tax credits for energy efficient home improvements?

On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits. The highlights are:

• The tax credits that were previously effective for 2009, have been extended to 2010 as well.
• The tax credit has been raised from 10% to 30%.
• The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost.
• The maximum credit has been raised from $500 to $1500 for the two years (2009–2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
• The $200 cap on windows has been removed.

Here are some answers to several frequently asked questions so far:
Q:  What about solar and geothermal systems?
A:  30% of the total installation costs of solar hot water, solar electricity, wind generation, and geothermal heatpumps can now be recovered as a tax credit without any dollar limitations.

Types of Geothermal Heat Pump Systems

There are four basic types of ground loop systems. Three of these—horizontal, vertical, and pond/lake—are closed-loop systems. The fourth type of system is the open-loop option. Which one of these is best depends on the climate, soil conditions, available land, and local installation costs at the site. All of these approaches can be used for residential and commercial building applications.

Closed-Loop Systems

Horizontal

This type of installation is generally most cost-effective for residential installations, particularly for new construction where sufficient land is available. It requires trenches at least four feet deep. The most common layouts either use two pipes, one buried at six feet, and the other at four feet, or two pipes placed side-by-side at five feet in the ground in a two-foot wide trench. The Slinky™ method of looping pipe allows more pipe in a shorter trench, which cuts down on installation costs and makes horizontal installation possible in areas it would not be with conventional horizontal applications.

Vertical

Large commercial buildings and schools often use vertical systems because the land area required for horizontal loops would be prohibitive. Vertical loops are also used where the soil is too shallow for trenching, and they minimize the disturbance to existing landscaping. For a vertical system, holes (approximately four inches in diameter) are drilled about 20 feet apart and 100–400 feet deep. Into these holes go two pipes that are connected at the bottom with a U-bend to form a loop. The vertical loops are connected with horizontal pipe (i.e., manifold), placed in trenches, and connected to the heat pump in the building.

Pond/Lake

If the site has an adequate water body, this may be the lowest cost option. A supply line pipe is run underground from the building to the water and coiled into circles at least eight feet under the surface to prevent freezing. The coils should only be placed in a water source that meets minimum volume, depth, and quality criteria.

Open-Loop System

This type of system uses well or surface body water as the heat exchange fluid that circulates directly through the GHP system. Once it has circulated through the system, the water returns to the ground through the well, a recharge well, or surface discharge. This option is obviously practical only where there is an adequate supply of relatively clean water, and all local codes and regulations regarding groundwater discharge are met.

Source : http://www.eere.energy.gov/consumer/your_home/space_heating_cooling/index.cfm/mytopic=12650

Benefits of Geothermal Heat Pump Systems

The biggest benefit of GHPs is that they use 25%–50% less electricity than conventional heating or cooling systems. This translates into a GHP using one unit of electricity to move three units of heat from the earth. Read More...

Selecting and Installing a Geothermal Heat Pump System

The heating efficiency of ground-source and water-source heat pumps is indicated by their coefficient of performance (COP), which is the ratio of heat provided in Btu per Btu of energy input. Their cooling efficiency is indicated by the Energy Efficiency Ratio (EER), which is the ratio of the heat removed (in Btu per hour) to the electricity required (in watts) to run the unit. Look for the ENERGY STAR® label, which indicates a heating COP of 2.8 or greater and an EER of 13 or greater. Read More...

Geothermal Brochure from Carrier

This special report is available as an Adobe Acrobat Reader file (PDF) for downloading and viewing on your computer. To view these files you will need the Adobe® Acrobat Reader®, which is available for free from Adobe's Web Site. (Adobe and Acrobat Reader are trademarks of Adobe Systems Incorporated)

Carrier Geothermal Brochure

Geothermal Performance Ratings

Ohio Incentives for Renewables and Efficiency for Additional Resource for Geothermal

DSIRE is a comprehensive source of information on state, local, utility, and federal incentives that promote renewable energy and energy efficiency. Read More...

Geothermal FAQs

Read the frequently asked questions and their corresponding answers regarding the use of geothermal energy.

If you are looking for geothermal solution for your home in the Ohio area, please call us today at 937-675-2982 or complete our online service request form