News from Underground – Tax Credits of 30% on Geothermal Systems Expiring!
Although the benefits of heating and cooling homes with geothermal energy don’t receive the same amount of publicity as solar heating, it just may be that still rivers run deep. The team at Lancaster has put together this update on geothermal systems to let you know about all of the benefits available, including huge tax benefits.
Geothermal Provides Incredible Efficiency
Let’s start with the unparalleled cost-saving effect using geothermal energy has on heating and cooling bills. As the name suggests, geothermal comfort systems utilize the heat residing deep within the earth to maintain optimum temperatures in homes. They transfer energy rather than burning fuel. Because of this, the most efficient geothermal furnaces have received an efficiency rating of up to 41 EER.
Geothermal Is Environmentally Friendly
And since no matter is destroyed no polluting gases are created. Geothermal emits neither carbon dioxide, carbon monoxide, nor any other greenhouse gas. As a result, both the United States Department of Energy (DOE) and the Environmental Protection Agency (EPA) have recognized geothermal energy as the most environmentally beneficial way to heat and cool homes.
Geothermal Systems Are Whisper Quiet
The quiet operation of geothermal comfort systems are as friendly to the ears as they are to the environment. The ground loops that circulate and deliver the heat are buried deep within the earth and deliver heat directly to the home so there are no noisy outdoor air conditioning units or heat pumps like conventional systems require.
The Longest Lifespan of Heating & Cooling Systems
Since geothermal systems are not subject to the year-round whims of Mother Nature, they last longer. The average heat pump system lasts most homeowners an average of 13 years. Contrast that with the 24+ year lifespan of a geothermal system. In fact, most of the ground loops are made of the same propylene material that goes into city pipe lines, and carry a 50-year material warranty.
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Tax Credits Are Set to Expire in 2016
Last, but certainly not least, there are the financial reasons to install a geothermal system:
- Energy Savings of up to 70% – The savings in energy will offset the initial installation investment. Geothermal systems have been found to reduce monthly bills by as much as 70%, and total energy consumption by 44%.
- ROI – Depending on individual usage, most geothermal systems can be expected to pay for themselves in reduced heating and cooling bills within a 5-to-7 year time span, while the energy savings continue for years and years.
- Tax Credits Expiring – As the icing on the cake, the government is so appreciative of the fact that more homeowners are turning to this win-win manner of heating and cooling that they are offering a 30% tax credit for installations. You can claim this generous tax credit whether you are building a new home or replacing the heating system in your current one. Since there is no upper limit on the credited amount, you will be able to offset the entire cost of installation by 30%. But, the tax credit is set to expire at the end of 2016. Your system must be installed by Dec. 31, 2016. So if you’ve been wavering over whether or not to install a geothermal system, there’s no time like the present to act.