The Geothermal Heat Pump: It’s Still Eligible For That Hefty Tax Credit

geothermal heat pump tax credits detroit michiganThe climate in Troy, Warren and other areas around Detroit requires conditioning throughout the year, especially in the winter, to keep your home comfortable. A geothermal heat pump is the most energy-efficient way to cool and heat in this region because it taps into the stable temperatures underground as a source for heat in the winter. Geothermal heat pumps are so efficient that the federal government is offering a 30 percent tax credit through 2016 for the entire cost of the equipment, labor and installation.

To qualify for the tax credit, you’ll have to choose equipment that meets the Department of Energy’s (DOE) guidelines for energy efficiency. The credit is applicable for new homes, for retrofits in existing homes, and even for second homes anywhere in the U.S. There’s no cap on any of the costs associated with the geothermal heat pump, which makes this an attractive way for homeowners to take advantage of these high-efficiency systems.

These systems offer up to 50 percent more efficiency than other HVAC equipment and are exceptionally durable. They use underground loop fields to exchange heat, so they’re never affected by outdoor air temperatures. In the summer, they deposit the heat from your home back into the water or soil, and in the winter, they harvest the heat.

This loop field can last up to 50 years and the indoor blower may reach 25 years with routine maintenance. Other HVAC equipment may see 15 years of service, so while the capital outlay for a geothermal heat pump is higher, monthly operating costs are significantly less, as is the need for equipment replacement. The systems doesn’t use an outdoor condenser, which reduces noise outdoors and in, and lowers energy consumption even more.

The tax credit takes a sizable bite out of the cost of installing the geothermal heat pump, and it’s the hope of the DOE that it enables more homeowners to make this choice for their homes. If you would like to learn more about these systems, contact Aladdin Heating & Cooling. We’ve provided HVAC services for St. Clair Shores, Shelby Township and the Detroit region since 1945.

Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems).  For more information about geothermal heat pumps and other HVAC topics, download our free Home Comfort Resource guide.

Aladdin Heating services Novi, Farmington, Farmington Hills, Southfield, Oak Park, Ferndale, Beverly Hills, Berkley, Royal Oak, Birmingham, Bloomfield Twp., Bloomfield Hills, West Bloomfield, Madison Heights, Clawson, Sterling Heights, Warren, Troy, St. Clair Shores, Grosse Pointe, Grosse Pointe Woods, Grosse Pointe Farms, Grosse Pointe Park, Detroit, Utica, Shelby Twp., Rochester, Rochester Hills, Auburn Hills, Lake Orion, Oxford, and Clarkston.

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