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.
For more information on how geothermal works, go to energystar.gov or geoexchange.org websites. These are great websites for more detailed information.
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.