In almost any climate, geothermal heating is a highly efficient, economical, and environmentally friendly alternative to traditional fuel burning. Homeowners who want to install a geothermal system can still benefit from substantial federal income tax credits that can help offset the cost of geothermal equipment and installation. Geothermal heating systems have been shown to slash energy costs by up to 70 percent.
They achieve this astounding level of efficiency because they don’t burn fuel or expend electricity to generate heat. Instead, they capture and move already-existing heat from place to place. Geothermal heating systems most commonly use soil as their heat source, but there are also water-source systems that capture and expend heat in wells, lakes, or aquifers.
Prices for a geothermal system vary based on factors such as the type of system, the thermal characteristics of the home where it’s installed, and the type of installation required. To promote the use of sustainable and renewable energy sources, the U.S. government offers substantial income tax credits to homeowners who install geothermal systems. These credits are applied directly to the homeowner’s income taxes for the year in which the geothermal equipment was bought and installed. Credits are for 30 percent of the system’s cost, with no upper limit. The system must be installed by December 31, 2012.
Credits apply to the cost of the heat pump and installation. Credits can be applied to geothermal systems for either a primary or secondary home. Rental units do not qualify. Credits apply to geothermal systems purchased for either new or existing homes. Federal tax credits will expire in 2016. The Database of State Incentives for Renewables & Efficiency may contain information on other incentive programs for New Jersey.
With more than 12 years of experience in the HVAC industry, Pipe Works Services is a trusted provider of heating, air conditioning, and plumbing services throughout the Chatham area and surrounding communities. Contact us today for more information on geothermal heating and the substantial federal tax credits that are still available for geothermal installations. Our goal is to help educate our customers in Chatham, NJ, and surrounding areas about energy and home comfort issues (specific to HVAC systems).