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Cap lifted on residential geothermal energy incentives
Great news for homeowners — improved incentives are making it easier to choose energy-saving geothermal heat pumps. The American Recovery and Reinvestment Act of 2009 now eliminates the $2,000 cap previously required on the 30-percent federal tax credit available to homeowners who install geothermal heat pumps at their residential property.
That 30 percent federal tax credit plus Gulf Power’s $400 per ton rebate will cover almost 40 percent of the customer’s cost. In addition, with all these credits, a customer that finances a system in their mortgage may have a positive cash flow their first year. And here’s the best part — customers can cut heating and cooling costs in half.
Geothermal heat pumps — which use the relatively constant temperature of the earth as a source to heat and cool homes — are the most efficient system available for heating and cooling homes, according to the U.S. Department of Energy. Near-constant ground temperatures of about 65 to 70 degrees year-round in the Southeast makes geothermal energy an ideal way for Gulf Power’s customers to heat or cool their homes.
Gulf Power has championed geothermal heating and cooling systems since the mid-1990s. Now included as a renewable energy source as with wind and solar, geothermal is getting more of the spotlight as an energy miser and for its benefit to the environment in reducing greenhouse gases. In addition, geothermal systems are recognized for superior comfort and reduced maintenance.
“We know geothermal is a reliable, proven technology — it’s the most efficient system you can buy,” said Sandy Sims, Gulf Power spokeswoman. “But what customers need to know is that geothermal heat pumps also provide superior comfort, along with energy savings. Geothermal heat pumps use the green energy of the earth so that when it’s 90 degrees outside, the geothermal heat pump system doesn’t have to work as hard as conventional heat pumps or air conditioners.”
How it works – A closed-loop system connects an indoor heat pump with plastic piping buried outdoors. The system circulates water through these underground pipes where it is warmed by the earth in the winter and cooled by the earth in the summer. This natural heating and cooling action, in conjunction with heat pump technology, can maintain indoor spaces at a constant, comfortable temperature. Geothermal installations have increased in recent years, as homeowners and large commercial projects turn to geothermal for payback on their investment, often with a 30 to 50 percent reduction in heating and cooling costs.
Gulf Power sees the geothermal savings benefit was well, and is installing a geothermal heat pump system in its 5,740-square-foot
“We’re going to use geothermal because we know it works, and we know it’s the most efficient system you can install,” Sims said. “It saves money and it helps reduce the amount of energy that we have to produce."
Benefits at a Glance
Geothermal is just one of many Gulf Power EarthCents programs designed to help customers save money and reduce energy use. To find out more about saving money and energy, call (877) 655-4001. Questions about something you Sandy Sims Manager of Public Affairs Jeff Rogers Media Relations
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