WHAT IS GEOTHERMAL?
Geothermal units are like ordinary heat pumps but use the solar energy stored just below our feet to provide heating, air conditioning and hot water.
The earth acts as a giant solar panel, absorbing roughly half of the sun’s heat energy. A series of pipes called a “loop” is buried just below the frost line to tap into that stored energy.
In the winter, heat is brought in through the loop, concentrated, and delivered throughout your home.
During summer, the excess heat in your home is removed and delivered back to the earth, completing the cycle.
Because geothermal units use the earth’s natural heat, they are among the most efficient and comfortable heating and cooling technologies currently available.
GEOTHERMAL LOOP TYPES:
VERTICAL LOOP
Used when space is limited. Holes are bored approximately 125 to 250 ft. deep using a drilling rig. A pair of polyethylene pipes with a u-bend fitting is inserted into the holes. A typical home requires three to five bores with roughly a 15-foot separation between the holes.
HORIZONTAL LOOP
Used where adequate land is available. Horizontal loops involve one or more trenches dug using a backhoe or chain trencher. Polyethylene pipes are inserted, and the trenches are backfilled. A typical home requires 1/4 to 3/4 of an acre for the trenches.
POND LOOP
If an adequately sized body of water is close to your home, a pond loop can be installed. A series of closed loops are coiled and sunk to the bottom of the pond or lake. A 1/2 acre, 8-foot-deep pond is usually sufficient for the average home.
OPEN LOOP
An open loop is used where there is an abundant supply of quality well water. The well must have enough capacity to provide adequate flow for both domestic use and the Geothermal unit. Geothermal units require 3 - 10 GPM, depending on size.
GEOTHERMAL BENEFITS
Thanks to the unique way geothermal units operate, they provide a host of exciting benefits to you and our environment.
AMAZING ENERGY EFFICIENCY:
Geothermal heat pumps don’t create energy, they simply move it. Only a small amount of electricity is used to circulate heat to and from your home. This allows Geothermal units to provide $5 of heating for every $1 of electricity used, while current “high-efficiency” fossil fuel furnaces provide only 98¢. Geothermal units are far more efficient than any conventional furnace!
COST EFFECTIVENESS:
Though geothermal systems can be more expensive to purchase up front, the cost difference will be returned through drastically lower energy bills. Most Geothermal owners see savings up to 70% on their utility bills!
GREATER COMFORT:
Geothermal units run only at the level needed by using variable speed motors. They slowly ramp up to speed rather than “roaring” to life like traditional units—resulting in even, consistent comfort. You won’t experience the large temperature fluctuations associated with other heating and cooling solutions.
QUIET:
With our units, there’s no noisy outdoor equipment to disturb the peace or clutter your yard. Some homeowners have reported checking the unit to see if it’s running.
LONGER LIFE AND RELIABILITY:
Because Geothermal units don’t require any outdoor equipment, they are protected from the rain, snow, environmental contaminants and abuse that hinders the efficiency of traditional air conditioners and heat pumps.
ENVIRONMENTALLY FRIENDLY:
Geothermal units don’t burn any fossil fuels or create carbon monoxide. This reduces our dependence on foreign oil while it works to reduce greenhouse gas emissions.
One Geothermal unit is the environmental equivalent of taking two cars off the road forever. In fact, the Environmental Protection Agency (EPA) says geothermal heat pumps are the most environmentally friendly and cost effective way to condition our homes.
Ready to experience the comfort and efficiency of Geothermal heating and cooling systems? Take the first step towards a more comfortable home by scheduling a free in-home estimate with Ryf Heating. Our experienced team is ready to help you find the perfect solution tailored to your needs.
Call us today at 920-582-4451 to book your appointment and say goodbye to inefficient heating and cooling for good!
FEDERAL TAX INCENTIVES - THE ENERGY CREDIT
In August 2022, the 30% tax credit for geothermal heat pump installations was extended through 2032 and can be retroactively applied to installations “placed in service” on January 1, 2022, or later.
Property is usually considered to be placed in service when installation is complete, and equipment is ready for use. However, if the system is part of the construction or renovation of a house, it’s considered placed in service when the taxpayer takes residence in the house.
To save the most on your installation, you’ll want to act quickly—this credit will drop to 26% in 2033 and 22% in 2034 before expiring altogether.
• 30% of total system cost in 2022 through 2032 • Can be used to offset alternative minimum tax (AMT)
• 26% of total system cost through 2033 • Can be used in more than one year
• 22% of total system cost through 2034 • Can be combined with solar and wind tax credits
• No limit to credit amount • Can be combined with energy efficiency upgrade credits
WHAT’S ELIGIBLE
Geothermal equipment that uses the stored solar energy from the ground for heating and cooling and that meets ENERGY STAR requirements at the time of installation is eligible for the tax credit.
Covered expenditures include labor for onsite preparation, assembly, or original system installation and for piping or wiring to connect a system to the home.
The structure must be located in the United States and used as a residence by the taxpayer, although primary residency isn’t required.
In fact, if geothermal is installed in more than one home, there’s no limitation on the number of times the credit can be claimed.
WHAT’S NOT
The credit can’t be claimed for spending on equipment used solely for hot tub or pool conditioning, nor on previously used equipment. Rental home installations also cannot be claimed. As of November 2013, electric strip heat and ductwork distribution systems are no longer included in the tax credit calculation.
HOW TO CLAIM THE CREDIT
Use IRS Form 5695 to claim the Residential Energy Efficient Property Credit, and there’s no limit on the credit amount. The tax credit can be used to offset both regular income taxes and alternative minimum taxes (AMT).
If the federal tax credit exceeds tax liability, the excess amount may be carried forward into future years. Spending on geothermal heat pump property adds to your home’s cost basis but also must be reduced by the amount of the tax credit received.
Click here to read more information
