What is Geothermal Heating?

Traditional heat pumps use the outside air to either warm the air inside a home in the winter or cool it in the summer. Geothermal heating is a form of heat pump that uses the temperature of the earth to do the same thing. While it may seem strange to pull heat from the ground in cold temperatures, it is actually a very effective and efficient method of heating a home.

 These pumps are similar to air heat pumps, but instead of using air to keep homes at an even temperature all year round, they use the earth. A series of pipes are placed in loops under the ground that transport a liquid, usually either water or antifreeze. To heat the home, the liquid absorbs the heat or energy from the earth and is brought back up to the home and is processed through a compressor and heat exchanger. This concentrates the earth’s energy into a higher temperature and it is dispersed throughout the home. 

For the warmer months, these heat pumps do just the opposite. They siphon heat from the home and circulate it underground, where the earth absorbs the heat. This is similar to how a refrigerator cools the air inside. Instead of blowing cold air in, it draws out the heat, leaving the interior cold. 

Geothermal heat pumps can be an efficient way to keep your home at an even temperature all year round. Although electricity is used for the pump itself, there is no fuel cost like a furnace. The initial set up is the most expensive aspect, since pipes must be put down below the earth’s surface. However, once they are installed, these can be a a very economical heating solution.

Tax Credits For Geothermal Heat Pumps

If you are considering installing an energy efficient geothermal heat pump in your home but are put off by the cost, don’t forget to factor in the effect of the federal tax credits.  Until December 31, 2016, all Energy Star rated geothermal heat pumps qualify for a 30% tax credit.  The credit is available for installation of a geothermal heat pump in a newly constructed home or replacement of the heating system in an existing home.

The credit applies to the cost of the equipment and also the installation and labor costs and there is no upper limit.  Geothermal heat pumps installed in second homes also qualify for the credit although rental homes are currently excluded.

Geothermal heat pumps are one of the most energy efficient residential heating and cooling systems currently available, but they are significantly more expensive than standard air source heat pumps or other heating systems such as a traditional natural gas furnace.

However, they are so efficient that homeowners can cut their heating and cooling costs at least half depending on where they live and cost of fuel or electricity in their area.  Even with these savings on energy costs, it can take many years for a geothermal heat pump to pay for itself, but the 30% tax credit dramatically shortens the time it will take to recover the expense of a new heat pump.

Remember that a tax credit is a dollar for dollar reduction in your tax bill, so installing a qualified geothermal heat pump at a cost of $15,000 will save you $5,000 in federal tax.  In addition, many states offer tax credits for even greater savings.  With the federal tax credits, a geothermal heat pump can pay for itself in a short time and you can then enjoy year after year of saving money on your energy bill.

 

The Many Advantages Of Geothermal Heat Pumps

A geothermal heat pump is one of the most energy efficient residential heating and cooling systems available.  Geothermal heat pumps are similar to air source heat pumps, but they rely on the earth as a source of heat in the winter and to dump heat in the summer.   Since the earth’s temperature remains at a relatively constant temperature between 50 and 60 degrees Fahrenheit just a few feet below ground, a geothermal heat pump is more efficient that an air source heat pump that can lose heating efficiency as temperatures drop below freezing.

Although their primary advantage is their high energy efficiency, there are plenty of other reasons to install a geothermal heat pump.  One reason is their durability.  Unlike air source heat pumps and traditional furnaces that have a service life of around 10 years, a geothermal heat pump should provide energy efficient heating and cooling for more than 20 years.

In addition to heating and cooling your home, many models of geothermal heat pumps also provide energy efficient water heating.  Also, geothermal heat pumps do not have a noisy outdoor compressor/condenser unit like a central air conditioner or air source heat pump.  The outdoor heat exchanger is a series of pipes buried underground.

Geothermal heat pumps are quiet indoors too.  The inside unit makes about the same amount of noise as a refrigerator so it is hardly noticeable.  Due to the way geothermal heat pumps operate, the heating and cooling results in more consistent, even temperatures that increases indoor comfort.

The main reason geothermal heat pumps are not more popular is that the cost of the initial installation is significant.  However, the 30% federal tax credit for Energy Star rated geothermal heat pumps helps reduce the out of pocket expense and the energy costs savings should pay for the unit in less than ten years.

Tax Incentives For Geothermal Heat Pumps

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.

Geothermal Heat Pumps

A heat pump is an excellent, energy efficient heating and cooling system. The two most common types of heat pumps are geothermal (also called ground source) heat pumps and air source heat pumps.   Heat pumps work by using electricity and a refrigerant to move heat from one area to another.  In cooling mode, they absorb heat from inside your home and release heat outside your home in pretty much the same way a conventional central air conditioner does.

In heating mode, the cycle is reversed – the heat pump absorbs heat outside the home and releases it inside your home.  An air source heat pump absorbs heat from or releases heat to the outside air using an outside above ground condenser and fan unit just like a central air conditioner.

Instead of the above ground condenser, a ground source heat pump uses a network of pipes buried under ground to absorb or release heat depending on whether the system is in cooling or heating mode.

Geothermal heat pumps are even more efficient than air source heat pumps because the ground stays at a relatively constant temperature.  They are also quieter because they don’t have an above ground condenser and fan.  The lack of a condenser and fan means they last longer than an air source heat pump and need fewer repairs.

The main disadvantage of a ground source heat pump is their initial cost.  A ground source heat pump can cost three to four times as much as an air source heat pump.  However, the higher initial cost will be offset by lower energy costs.  Your local HVAC contractor can help you decide if a ground source heat pump or an air source heat pump makes better sense for your home.