With the rising costs of oil and natural gas, homeowners continually find it’s more and more expensive to heat their homes. Geothermal heat pumps offer an enviro-friendly and cost effective alternative to conventional home heating systems like gas furnaces, oil furnaces and boilers. Due to the complexity of geothermal systems and the customization needs of each home, it’s imperative to partner with an experienced geothermal HVAC contractor near you. For over a decade, Capital Heating & Cooling has specialized in installing home heat systems including the complex geothermal energy systems.
Our New Berlin HVAC experts provide you with a full Geothermal Energy support team including:
- LEED Certified Energy Consultants
- Comfort Consultants
- NATE Certified HVAC Installers
- Post Installation Quality Assurance Team
Interested in Geothermal Heat for your home? Contact the New Berlin Geothermal System Installation Experts for a free in-home consultation.
Geothermal Energy Pros and Cons
Like every decision in life, it pays to weigh the pros and cons before investing; your geothermal Heat Pump is no exception. Here’s a short list of geothermal energy pros & cons:
|Lower Energy Bills Quickly Recoup Installation Cost||Costs More to Install than Conventional Heat Systems|
|Uses Renewable Resources|
|Reliable & Stable Energy Source|
Use our Geothermal Savings Calculator to see how much you could save on energy bills by replacing your existing heating and cooling system with a geothermal system.
Geothermal Heat Pump Cost Factors
Studies by the Environmental Protection Agency have shown that homes utilizing geothermal pumps cutback heating costs by up to 70%, quickly saving more than the initial costs of pumps themselves.
The cost to have a geothermal heat pump professionally sized and installed depends on factors such as soil conditions, the system features you choose, the installation quality, tax incentives, energy efficient mortgage options, and HVAC financing. While undoubtedly having geothermal heat installed costs more than conventional home heat systems such as oil furnaces, gas furnaces and boilers, the special financing and incentives like tax credits help make the initial investment of Geothermal Heat more manageable. Plus, unlike traditional systems the available financing, tax incentives and energy savings a geothermal system provides may allow you to recoup your initial investment in as little as two years. Capital Heating & Cooling can help you make sure the system you’re interested in qualifies for available incentives before you make your final purchase.
A key factor in determining if a geothermal system is ideal for your home includes an analysis of your soil condition, particularly its thermal conductivity and the presence of rocks. Rocky land can greatly decrease the possibility of a geothermal heat pump for your home because the presence of rocks can interfere with drilling for the looping pipes. Capital Heating & Cooling’s talented team of specialty HVAC technicians is well versed in area soil types and geological conditions specific to Southeast Wisconsin so we can find the optimal pump to heat your home.One of the most important factors our geothermal experts look at is the thermal transfer capacity of your soil. If your soil is deemed conducive for heat transfer, you’ll get a higher return on investment because a geothermal heat pump depends on the system’s ability to transfer heat efficiently during the heating process.
Testing and evaluating the conditions of the soil on your lot is the first and most important step in determining the viability of and payback for installing a geothermal heat pump for your home. As a result, it’s of the utmost importance that you work with a reputable HVAC contractor who specializes in geothermal energy. Capital Heating & Cooling performs a thorough evaluation of your soil conditions including the presence of rocks and the thermal conductivity of your soil to help determine if and which geothermal heat system is right for your home.
Our geothermal experts with help you decide if an open loop with surface draining, open loop with reinjection, vertical closed loop, or a horizontal closed loop geothermal system is best for your home. While all types of systems effectively link to the geothermal heat pump, there are some differences in how they function. The main difference is how the systems use of the water underground
An open loop system requires a generous source of ground water like a well or pond and directly pumps the water to the heat pump inside your home where it is used for heating. Unlike a closed loop system, open loop has a couple different ways to dispose of the water such as surface draining, re-injection into the ground. It’s important to note when returning the water back to the earth, there is no pollution generated; the only difference in the water once processed through the geothermal heat pump is a slight change in temperature.
A closed loop system uses continuous underground loops of piping that are filled with an anti-freeze-like liquid that helps transfer the ground temperature to the geothermal heat pump. Depending on the size of your yard, Capital Heating & Cooling can install a closed loop geothermal system either horizontally or vertically; a vertical ground loop is most common because it requires minimal space.
The caliber of HVAC contractor you hire may also impact the cost of your geothermal heat pump installation. Geothermal HVAC specialists like Capital Heating & Cooling who have over a decade of experience in geothermal heat pump installation, maintenance and repair may cost more than a local HVAC company with little to no experience in Geothermal Energy. Due to the complexity of geothermal systems, it’s imperative your equipment is sized and installed properly. When properly sized and installed geothermal heat pumps deliver more energy per unit consumed than traditional heat systems. Our New Berlin geothermal experts recommend for even more savings, to include a “desuperheater” with your geothermal heat pump to heat your home’s water. In the summer, the heat that is taken from the house is used to heat the water for free. In the winter, water heating costs are reduced by about half.
In addition to the highest quality geothermal installation, your newly installed geothermal heat pump is guaranteed for up to 10 years by Capital Heating & Cooling.
In addition to the annual heat savings you’ll see from geothermal heat systems, homes that have geothermal heating and cooling systems installed are eligible for a onetime tax credit of 30% of the total cost of their ground loop or ground water geothermal heat pump. The tax credit is available through December 31, 2016 and to qualify your new geothermal system must meet or exceed EnergyStar requirements. Tax Incentives for Geothermal Heat Installation
Qualified Geothermal Heat Equipment:
- Uses the ground or ground water as an energy source to heat your home
- Meets the requirements of the Energy Star program which are in effect at the time the equipment is installed. (Ask Capital Heating & Cooling, your New Berlin geothermal installer)
After Capital Heating & Cooling completes the profession installation of your home’s Geothermal Heat System Installation, we’ll provide you with an invoice that notes “Geothermal Heat Pump” and that it “Exceeds requirements of Energy Star program currently in effect”. While no proof of purchase is required to file for the tax credit, in case of an audit, you’re encouraged to keep the detailed invoice provided by Capital Heating & Cooling on file.
Geothermal Heating Tax Credit Example: Tax Credit: $29,000 x 30% = $8,700.00. The actual cost the homeowner is $20,300Homeowner spends $29,000 total to install a new geothermal heat pump system.
To file for the file for the tax credit, homeowners can complete the Renewable Energy Credits subsection on their tax return forms for 2008.
Everyone seems to be on board with enviro-friendly geothermal systems including the government, eco-friendly advocates and even banks and mortgage lenders. If you’re thinking about buying or refinancing a home, it may be possible to include the purchase of your geothermal heat pump system in an “energy-efficient mortgage” that would cover the cost of the new qualifying system and other energy-saving improvements to the home.
When including a geothermal heat pump installation or retrofit in a mortgage – the cost of your new equipment will produce a positive cash flow from the beginning. For example, if the extra $3,500 cost of the geothermal heat pump will add $30 per month to your monthly mortgage payment, the energy cost savings will easily exceed that added mortgage amount over the course of each year. Banks and mortgage companies can provide more information on these energy-efficient mortgage loans for energy-saving home improvements.
Capital Heating & Cooling partners with some of the world’s largest financial and retail institutions to bring you the best financing options that help make your geothermal heat pump installation most affordable. Promotions such as 0% interest for 5 years, $0 down, and same as cash are great ways to minize your monthly payments. Between low monthly payment, lower energy bills and available tax incentives, now’s the time to consider geothermal energy for your home!