A geothermal system will not only be the most cost saving and environmentally safe system for you and your family, it will give you the comfort you seek in your new home. A new geothermal system would be one of the best investments you can make to save on your future energy cost. For a typical 1500 square foot home the cost for installation is between $30,000- $40,000*. A new oil or gas furnace cost on average $20,000-$25,000* . When considering all of the incentives offered from your particular state and federal government agencies, it can cost you the same if not less. Plus, you will save much more in the years to come.
What does it Cost Install a Geothermal System
You Can Afford the Best Heating and Cooling System
The cost to install a geothermal heating and cooling system varies by geographic location, loop size, home/building size, and installer so there is no clear-cut price. Bottom line: When compared to traditional HVAC systems, geothermal systems will provide more cost-savings. To get an estimate for your home or building, reach out to us and we'll provide you with a FREE geothermal design and quote. Don't write this amazing technology off without getting all the facts for your unique situation.
Between the highest efficiencies, long-lasting equipment, less maintenance, safeties, and cost savings on heating, cooling, and hot water bills, geothermal systems provide a return on investment in more ways than one. Couple these benefits with financial incentives and flexible financing options, and you'll be able to make monthly payments on a new system with the money you save on heating and cooling costs.
On February 17, 2009, President Obama signed a stimulus bill (The American
Recovery and Reinvestment Act of 2009) that made some significant changes to the
energy efficiency tax credits.
The highlights are:
The maximum credit cap has been removed for the installation of a
geothermal heat pump.
This allows a 30% tax credit to the cost of expenditures for the installation of a geothermal
system, with no maximum.
The tax credits that were previously effective for 2009, have been extended to 2016 as well.
The tax credit has been raised from 10% to 30%.
The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted
to 30% of the cost.
The $200 cap on windows has been removed.
Financial Incentives
As of February 2009, A tax credit of 30% with NO MAXIMUM for Geothermal Heat
Pumps placed in service after 12/31/2008.
Through the Connecticut Energy Efficiency Fund, CL&P and United Illuminating offer a $500 per ton incentive (maximum incentive is $1,500) for the installation of Air Conditioning and Refrigeration Institute (ARI)-rated geothermal systems.
Connecticut Energy Efficiency Fund. Click here to find out how CEEF can save you valuable money
Home builders are also eligible for a $2,000 tax credit for a new energy efficient home that achieves 50% energy savings, or a $1,000 tax credit for a home achieving 30% energy savings
Through the Connecticut Energy Efficiency Fund, CL&P and United Illuminating offer a $500 per ton incentive (maximum incentive is $1,500) for the installation of Air Conditioning and Refrigeration Institute (ARI)-rated geothermal systems.
Connecticut Energy Efficiency Fund. Click here to find out how CEEF can save you valuable money
Home builders are also eligible for a $2,000 tax credit for a new energy efficient home that achieves 50% energy savings, or a $1,000 tax credit for a home achieving 30% energy savings
30% US Tax Credit
There is a 30% federal tax credit available for residential geothermal systems. Any geothermal equipment meeting ENERGY STAR requirements at the time of installation is eligible for the federal tax credit. The credit is equal to 30% of the total system cost, including equipment, labor, piping, etc.
State, Provincial, and Local Incentives
There are state, provincial, and local incentives available in parts of the U.S. and Canada. Your local utility may offer incentives, as well. Additional incentives can be found by searching the Database of State Incentives for Renewables & Efficiency®.