Geothermal Heat Pumps

Geothermal heat pumps are an often overlooked source of energy savings. They use underground loops to tap into energy stored beneath the ground and heat and cool far more efficiently than conventional systems.

Geothermal heat pumps can reduce energy consumption up to 44% compared to air-source heat pumps and up to 72% compared to electric resistance heating. Even though the installation price of a geothermal system can be several times that of an air-source system of the same heating and cooling capacity, the additional costs are returned in energy savings in 5-10 years. According to the EPA, geothermal heat pumps can save homeowners 30 to 70 percent on heating and 20 to 50 percent on cooling costs over conventional systems. Savings can range between $358 and $1,475, annually.

Geothermal Heat Pumps have other benefits. They last 25 years, nearly twice as long as conventional systems. The ground loop, which taps the underground energy, lasts at least 50 years. Excess energy from Geothermal Heat Pumps can also be used to heat water.

Numerous incentives can offset the high initial cost of a geothermal heat pump:

Federal

1. Energy Star: 30% of geothermal heat pump cost with no upper limit. Existing homes and new construction qualify.

State

1. Geothermal Heat Pump Grant Program: Up to a maximum grant amount of $3,000 for residents and $10,000 for businesses.
2. Sales and Use Tax Exemption for Renewable Energy Equipment: Maryland exempts geothermal and solar energy equipment from the state sales and use tax.

Montgomery County

1. High Performance Building Property Tax Credit: Property tax credits on new or extensively modified multi-family residential and commercial buildings that meet certain high performance building standards.
2. Residential Energy Conservation Property Tax Credits: The geothermal and solar property tax credit is equal to 50% of the cost of the system, up to $5,000 for heating, cooling systems, and electricity generating systems and $1,500 for water heating systems. Residents may claim only one geothermal or solar energy tax credit per year.

For more information on incentives and alternative energy, visit these sites:

• Subsidies for Energy Conservation and Installation of Renewable Energy
• Maryland Energy Administration