Everyone would like to save money on their heating and cooling costs, and a geothermal system is a great way to do so. Yet, when you look at the installation costs of a geothermal system, you may find yourself wondering if the investment is worthwhile. Are geothermal systems cost effective? The answer to this question is “yes” when you look at the long-term benefits. Here’s a closer look at the benefits you can expect from investing in a geothermal system, so you can weigh the benefits against the cost to see how much you can stand to save.
Check out our geothermal savings calculator below to see how much you can save based on your location and current energy source!
The primary way you will save with a geothermal system is through lower energy bills. In fact, a geothermal heat pump will reduce your heating costs by as much as 30 to 60 percent the moment you start using it. You can save up to 50 percent on cooling costs as well. These are significant savings, and they add up over the lifetime of a system. Depending on your location and your current energy source (and associated costs), you can expect to save as much as $1,500 annually.
Energy savings are just the first way you will save. Geothermal systems have two components—an indoor component and a ground loop. The indoor component is likely to last at least 25 years, which is much longer than the 10-15 years of a conventional HVAC system. The ground loop could last over 50 years. Though the system costs more to install, you won’t have to think about it again for decades. If the internal system lasts 25 years and saves you $1,500 a year, that adds up to $37,500 in energy savings.
The federal geothermal tax credit which was allowed to expire in 2017 has been extended to December 31, 2021. The tax credit remains at 30% until December 31, 2019, at which point it begins a phase-out. For 2020, the credit will move to 26%, and in 2021 the final incentive will be 22%. Take advantage of the highest percentage available by installing your system before the end of 2019! Get all the details on the tax credit here.
As you can see, a geothermal system is a very cost-effective option when you look at the long-term savings. If you are considering installing one in your Lexington, KY home, Arronco Comfort Air can help. Contact our team today to learn more about your options or for a free quote for setting up your geothermal heat pump. With an initial investment that pays big dividends, a geothermal heat pump can help your family stay comfortable while saving money.
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