Geothermal has proven itself to be an extremely energy efficient way to heat and cool homes and businesses. Geothermal systems can save 50% in energy costs and has proven to decrease maintenance costs as well. The average payback period is 6-8 years.
Federal tax credits for geothermal heat pumps were recently reinstated by the federal government. Residential consumers are eligible for a 30 percent federal tax credit for installing a geothermal heat pump system in their home. The reinstated tax credits are retroactive to Jan. 1, 2017, meaning that anyone who installed a geothermal system in their home in the past 14 months now qualifies for the tax credit. The tax credits are extended through Jan. 1, 2022, through a phase out plan in which the credit is reduced to 22 percent before ending.
Installation of geothermal unit may also be eligible for a WIEC ERC loan.These loans are available for members with good credit who want to install geothermal in a new or existing structure on WIEC lines.
WIEC General Manager Todd Grotts says, “WIEC members who install this type of heat will also receive a $1,000 bill credit at installation. When combined with our geothermal rate it makes a good deal even better.” In order to meter the kilowatts eligible for the rate, WIEC must install a second meter. There is a $6 monthly charge for this meter.