How Geothermal Heating & Cooling Works:

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The earth is a great source of heat. In fact, the earth stores 47% of the solar energy that reaches us, making it a natural source of heat for our homes. So, it makes sense that your backyard can be a great energy source for heating and cooling your home.

As the seasons change, outdoor air temperatures fluctuate. However, ground temperatures about 4 to 6 feet below the earth’s surface remain relatively moderate and constant year-round. A geothermal system involves installing an electrically powered ground source heat pump in the basement that circulates a water-based solution through a loop system that is buried in the earth to take advantage of these constant temperatures. The system moves the heat from the ground into the home using the same technology a refrigerator uses to remove heat from food. During the summer, the system is simply reversed, pulling the heat from the building and carrying it through the system and placing it in the ground. This process creates free hot water in the winter and delivers substantial hot water savings in the summer. The system can be installed in single-family or multi-family structures, as well as commercial buildings. The pumps can be installed on almost any size lot – under lawns, landscaped areas, driveways or the building itself.

The Department of Energy (DOE) and the Environmental Protection Agency (EPA) have both endorsed ground source heat pump systems as among the most energy efficient and environmentally friendly heating, cooling and water heating systems available. The system is clean and reliable, and it makes us less dependent on foreign oil.

As part of the Emergency Economic Stabilization Act of 2008, HVACR tax incentives for homeowners and businesses have been extended. With the new American Recovery & Reinvestment Act of 2009, the $2000 tax credit limit has been removed. The new legislation covers installations from Jan. 1, 2009, through Dec. 31, 2016.

Benefits of installing a geothermal system include:
• Saving 30% to 70% on monthly utility bills
• Investment can be recouped in as little as 3 years
• Claim up to 30% of the installed cost in tax credits in the year the system is placed into service.
(Capped at $2000 for system installed in 2008; no cap for 2009 and beyond).
• An extension of the Commercial Building Tax Deduction until 2013 allows building owners to deduct up to $1.80/square foot for improvements in overall performance
• Reduces the carbon footprint, urban smog and acid rain, global warming
• The smallest installed system is equal to planting an acre of trees or removing two cars from the road
• 100,000 installations will save 37,500,000,000 BTU’s of energy and $750,000,000 in heating, cooling and hot water cost, plus reduce pollutants by 2,160,000 tons over a 30-year equipment lifespan