Incentives and Costs
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Of equipment and installation costs
25D provides households an uncapped 30 percent tax credit for a geothermal heating installation. An average geothermal installation costs about $24,000, thus the average tax credit will be around $7,200. Your actual costs will depend on a variety of factors, including the size of your house and size of your planned geothermal installation.
All the details
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How does it work?
Geothermal or ‘ground-source’ heat pumps function much like every other type of heat pump, by capturing and moving heat between indoors and out. The primary difference is that geothermal systems transfer heat with the earth, through long loops of liquid-filled pipe buried in the ground.
Because the earth even a few feet underneath our feet remains at a stable temperature all year long, geothermal heating doesn’t have to do much work to extract and disperse heat. As a result, geothermal heating can be even more efficient than air source heat pumps.
How will it save me money?
Like air source heat pumps, geothermal heating transfers heat instead of creating it, and it doesn’t burn fossil fuels. As a result, it is 3-5 times more efficient than most current heating systems. These efficiency gains translate to hundreds of dollars per year in savings for an average household.