Geothermal Heat Pump Financial Incentives

Want to slash your energy bills and heat and cool your Baltimore, home with incredible efficiency?

Geothermal is the answer.

Let us guide you through the financial incentives that make it possible and show you why we are big supporters of geothermal at Ground Loop Heating and Air Conditioning.

In this blog, you will find information about tax credits and rebates we compiled to help you understand the funding options available for geothermal energy.

We can also discuss financial incentives with you in person. We always discuss funding options for geothermal installation during our in-home consultations. We believe it is essential for you to know as much as possible about your potential new system before you buy it.

That includes understanding how geothermal energy will save money in the long run, knowing what influences its price, and identifying financial incentives to offset the cost.

How Do Geothermal Systems Save Money?

A geothermal heat pump maintains comfort in the winter months by capturing heat from the constant temperature underground and transferring it to your Baltimore, home.

During the summer, a geothermal system removes heat from your home and transfers it underground. 

According to the U.S. Department of Energy (DOE), geothermal heat pumps reduce energy consumption by up to 65 percent compared to air-source heat pumps that extract heat from outdoor air.  They can be 300 to 600 percent efficient on even the coldest of winter nights.

That means a geothermal heat pump can convert one unit of electricity into three to six units of heat energy, saving you big bucks on monthly utility bills.

The system’s heat exchanger, which consists of liquid-filled underground pipes, can last 50 years or more, and the indoor geothermal heat pump typically lasts 25 years, making geothermal a great long-term investment.

Schedule a free consultation today with Ground Loop Heating and Air Conditioning to learn more about geothermal efficiency.

How Much Does a Geothermal Heat Pump Cost in Baltimore?

You might be wondering why geothermal systems are more expensive than standard air-source heat pumps.

Air-source heat pumps do not require backyard drilling or excavation, but geothermal installation does, and that is one reason geothermal systems are pricier.

In addition to equipment, labor, and permit costs, a geothermal installer must consider the cost of drilling or excavating to place the piping system, called a loop, below ground on your property.

The price also varies based on the loop used. A vertical arrangement tends to be more expensive than a horizontal pattern that uses more backyard space.

The cost of geothermal for your Baltimore, home also hinges on the soil condition and property accessibility. The loop and ground preparation add to the price tag compared to air-source heat pumps.

 This Old House, for example,pegs the price of geothermal heat pumps from $3,000 to $6,000, and installation between $10,000 and $30,000. Forbes estimates $24,500 is the average cost of a geothermal heating and cooling system.

At Ground Loop Heating and Air Conditioning, we install geothermal systems in all price ranges. We always tailor the project to your Baltimore home’s heating and cooling needs.

Fortunately, the federal government has financial incentives to take the sting out of the price.

Federal Tax Credits for Geothermal Heat Pumps

The Inflation Reduction Act (IRA) extended the Energy Efficient Property Credit for geothermal heating and cooling. It provides a 30 percent tax credit for geothermal systems placed into service after Dec. 31, 2021, and before Jan. 1, 2033.

IRA Rebates for Geothermal

The IRA also allocated money to each state for the Home Energy Rebates program, which consists of two distinct rebate programs: the Home Efficiency Rebates (HOMES) and Home Electrification and Appliance Rebates (HEAR)

• HOMES Program: This program provides rebates based on the energy savings achieved. Rebates vary based on income levels, with higher rebates available for lower-income households.
• HEAR Program: This program offers rebates for specific energy-efficient upgrades, including geothermal heat pumps. Rebates are available to all income levels and are based on the amount of energy saved.

Our team at Ground Loop Heating and Air Conditioning can help you determine whether you qualify for these rebates and others.

Other Financial Incentives for Geothermal

Some state and local governments and utility companies may offer incentives for geothermal systems.

These incentives can include:

• Property tax exemptions
• Rebate programs
• Low-interest financing

You can research incentives by contacting your utility company, state energy office, and city or county government.

A few helpful links include:

• Switch Is On offers information on a state-by-state basis, including incentives from utility companies.
• Rewiring America helps homeowners take steps toward electrification, including finding incentives.
• DSIRE is a comprehensive compilation of energy efficiency and renewable energy incentives.

Start Planning for Geothermal Today!

As a qualified contractor, Ground Loop Heating and Air Conditioning can find the financial incentives you need to make geothermal installation affordable for your Baltimore home. Call us at 410-836-1706 or request service online for a personalized estimate for a geothermal system tailored to your home.