Heat pumps are one of the most energy efficient ways to heat and cool a residence. Although the technology has been around for decades, heat pumps have only become popular in recent years and it is estimated that more than ten percent of American homes rely on a heat pump for heating and cooling. Air source heat pumps that work much like a central air conditioning system are by far the most common, but geothermal heat pumps (also called ground source heat pumps) are becoming increasingly popular.
Geothermal heat pumps are the most efficient type of heat pump marketed for residential use. In addition, they are very durable and require less maintenance that other types of home heating and cooling systems. A geothermal heat pump has an expected life of about 20 years for the pump and up to 50 years for the underground piping.
Over the life of the system, a geothermal heat pump can save a homeowner thousands of dollars on energy costs for heating and cooling. However, many homeowners are deterred by the relatively high initial cost of a geothermal heat pump.
Fortunately, federal tax credits are available to help offset the initial cost of a new geothermal heat pump. You may be eligible for a tax credit equal to 30 percent of the cost of a new geothermal heat pump installed before Dec. 31. 2016. In addition, some states offer additional tax credits and your local utility may offer incentives for new heat pump installations. Your local HVAC contractor will have more information about incentives available in your local area.
