It would seem, at first glance, that abundant natural gas and geothermal heat pumps work in conflict with each other. I would propose that nothing is further from the truth. With the discovery of the incredible volume of natural gas in the Marcellus and Utica plays in PA, WV, and OH ones first impression is  geothermal heating will be pushed to the sidelines. Instead it has been our experience, here at Yoder Drilling and Geothermal, that this is not the case, in fact we are seeing an increase in sales as a direct result.

As a loop installer for many HVAC contractors in eastern OH, western PA and northern WV, we are in the heart of the  “ boom”.  Many land owners are benefiting with significant bonus lease payments from the natural gas industry and find themselves with a new found ability to upgrade their home.  Upgrading the heating and cooling system is a great option that can dramatically increase the equity of the home. They may even be able to build that new home they have been dreaming of. Ground source geothermal heat pumps are a perfect fit.

Geothermal is the most efficient heating and cooling system available and with a 30% federal tax credit on the entire installation cost –this system benefits the homeowner in multiple ways. By helping homeowners become aware of the tax credits and efficiency of geothermal we are benefitting from the good fortune of the local community.

 On a larger scale, long term availability of a low priced natural gas will likely keep electric rates in check and so will keep geothermal heat pumps the most economical option for homeowners for years to come.

                        Tim Yoder, President
                     Yoder Drilling & Geothermal, Inc
                     (330) 852-4342

             www.yodergeothermal.com

 To qualify for the federal tax credit, Geothermal Heat Pump systems must meet the ENERGY STAR requirements at the level of Tier 2 (see table below).  These requirements must have been in effect at the time of installation.   Requirements for energy efficiency most likely will change again on January 1, 2012

Tier 2 ENERGY STAR GHP Requirements

Source: ENERGY STAR website: www.energystar.gov

 A qualified residential Geothermal Heat Pump system must meet the following ENERGY STAR requirements to be eligible for the 30% federal tax credit:

•  Installed after Jan. 1, 2009 and before D1ec. 31, 2016.
•  Meet the the Energy Star specification that is in effect at the date of installation.
•  Installed in a residence (does not apply to rental property)

We at Yoder Geothermal encourage homeowners to be proactive in finding the geothermal system right for your home.  Choosing a knowledgeable HVAC contractor thoroughly informed and familiar with tax credits appropriate  for your new system continues to be of utmost importance. 

 For more information visit http://www.energystar.gov/index.cfm?fuseaction=find_a_product.showProductGroup&pgw_code=HP

There are several requirements that need to be met in order to collect the rebates. The first step is asking your HVAC dealer to enroll in the program. Marshall B Jennings of  CLEAResult  shared the details with Tim at Yoder Geothermal this week.   CLEAResult is helping to administer the rebate program for  AEP Ohio, IE Ohio Power and Columbia Southern Power.   After haveing a home  energy assessment,  homeowners can expect to receive: a $350.00 rebate for a ground source heat pump with an HSPF rating of 8.5 or higher and Seer of 14.5 higher, $150.00 for a variable speed air handler and a $150.00 bonus for system installation. Total the rebate equals $650 for a geothermal heating and cooling system. Nearly all geothermal systems qualify

If you’ve been thinking about pulling the plug on your old gas or oil system, now is a great time to start the process of installing a clean, green, economical geothermal heating and cooling system for your home. Contact your professional Geothermal installer for more information or click here

Questions asked by attendees included interest in laws and regulations for drilling and installing geothermal loop and systems, and of course comments on the huge impact the 30% tax cut (currently offered by the federal government) is making in encouraging geothermal system installation.

Discussion continued on how to protect residents property from normal drilling silt and water runoff during a project and the best way to educate homeowners about the process of geothermal loop installation. Yoder’s prides themselves on taking the extra step to communicate with and accommodate homeowners interested in installing geothermal systems using pictorial forms to demonstrate how a job site will look before during and after the project. There was also much interest expressed by attendees in geothermal residential sizing of systems including the newer hybrid systems. Nearly 700 people attended the conference. Read more at www.IGSHPA.OKSTATE.edu

Tim Yoder at IGSHPA Conference

IGSHPA Conference Panel

1. Paying cash up front is always the best. This allows you the immediate comfort of a geothermal heating and cooling system. For most of us, cash is not an option and considering financing is the next step.

2. A home equity loan or adding to your existing home equity loan is the most popular way to pay for your geothermal system. Adding a green energy system to your home often adds value in addition to the monthly savings you enjoy.

3. When deciding if now is the time to purchase your geothermal system, take into account how long you plan to stay in your existing home. Also important is the age of your current furnace system. It may be time to switch out your gas/oil furnace in the near future anyway.

4. Consider an “Energy Efficient Mortgage” or EEM if buying or refinancing you home. According to the energystar.gov website, EEMs give borrowers the opportunity to finance cost-effective, energy-saving measures as part of a single mortgage and stretch debt-to-income qualifying ratios on loans thereby allowing borrowers to qualify for a larger loan amount and a better, more energy-efficient home. Learn more with EnergyStar

5. Furnace Manufacturers may offer financing for part or all of the project. Be sure to choose a reputable HVAC dealer and loop installer

6. The best financial reason to choose geothermal installation continues to be that 30% of your investment will be returned on your taxes!

Enjoying the comfort and savings of a geothermal system may be only a few creative financing decisions away. Good Luck!

Becky

The tax credit cap was lifted on Geothermal Heating and Cooling Systems and their loops for the first time in history. Because of the American Recovery and Reinvestment Act of 2009 Geothermal systems can receive a 30% tax credit if placed in service before December 31, 2016. Previously the geothermal tax credit had been limited to $2000.

This is a real tax credit not a deduction. A tax credit reduces tax owed dollar-for-dollar –while a tax deduction only removes a percentage of that owed tax. There has never been a better time to invest in Geothermal Heating and Cooling Technology.

An investment is the only way we can describe this particular scenario. Geothermal Heating and Cooling Systems achieve Energy Efficiency Ratings in the 30′s. When you consider the return on investment in energy savings (up to 50% or more) coupled with geothermal tax incentives, you cannot afford to put your money anywhere else!

Join us as in our future posts we explore the world of geothermal heating and cooling and how homeowners can make this green technology work for them. For more than 15 years we’ve been installing geothermal loop and we are VERY excited about the future.

The Emergency Economic Stabilization Act of 2008,  signed into law October 3, 2008 created a tax credit for the installation of a geothermal heat pump system in new or existing homes.  The American Recovery and Reinvestment Act of 2009 expanded this credit by removing a $2000 cap for qualified installations placed into service beginning January 1, 2009.

Be sure to take advantage of this credit when installing your geothermal system.  It’s easy to claim.  Just use IRS Form 5695 when you file your taxes.

Form 5695 is also used for claiming residential energy credits for other home improvements like insulation, exterior windows and doors, and roofing.

With a full 30% tax credit, there’s no better time than now to check out the benefits of geothermal heating and cooling for your home.