An underground closed-loop system is one method of heating with geothermal energy.
Imagine for a moment that it’s 10 years from now and you saved almost $25,000 in home energy costs.
That’s an extra $2,500 per year that you were able to put toward other home improvement and home decorating investments, and it’s only one of the many benefits of switching from a traditional heating and cooling system to a geothermal energy system.
Suzi Nichols of Williams Comfort Air in Carmel, IN, gave us the scoop on how we can achieve these renewable energy savings, as well as tips for maximizing the return on your investment in a geothermal system.
Benefits of Geothermal Air Conditioning and Heating
The initial cost of an environmentally friendly unit is more than that of a traditional system, but the cost is actually quite competitive when you consider its greater efficiency and longer lifespan.
- Approximately 50% of your home utility bills come from heating and cooling. But for each unit of electricity you use with a geothermal unit, you get up to 5 units back, which makes it up to 500% more efficient.
- An additional 15% of utility costs come from the water heater, yet geothermal energy heats your water for free during the summer, and reduces the overall cost of water heating during colder seasons.
- The money you save covers the cost of the initial investment in as few as 5 to 10 years. While a traditional system may only last for 10 years, a geothermal system typically lasts for more than 20.
- Use of a geothermal system qualifies you for an unlimited federal tax credit of 30% of the purchase price, and you may qualify for additional rebates from your state.
- It’s also the most environmentally friendly option for heating and cooling your home, according to the Department of Energy. Installation of one system is comparable to removing two cars from the road, environmentally speaking, and it’s the equivalent of planting 750 trees.
What You Should Know Before Installing a Home Geothermal System
“Without proper installation, you will not benefit from the savings that you should,” says Suzi. Although price is understandably a deciding factor when making any purchase, it’s far from being the most important consideration when installing a geothermal system.
Consider the quality of work, technical skills, dependability, and stability of any company from which you choose to contract the work. The following tips from Suzi will help you do so.
- Check client and community references. If you find a company that you wish to hire, talk with its current clients to find out about their experiences. Community references include the local Better Business Bureau and the Angie’s List website.
- Check the company’s local licenses and insurance coverage.
- Expect an on-site evaluation and thorough heat-loss/heat-gain calculation. The contractor should measure your home, check insulation, and assess your comfort needs.
- The contractors should present a detailed written proposal that, among other things, includes any labor or equipment warranties and guarantees. It’s important that you examine and understand all aspects of the agreement before work begins, as well.
- Ask about the maintenance requirements of your new system, as maintenance ensures safety, reliability, and optimal performance. Some contractors include a maintenance agreement in the proposal.
Investing in geothermal heating and cooling systems can bring you significant energy savings and reduce your home’s impact on the environment. But, due to the upfront costs and long-term commitment, it’s essential that you find a reliable company for your installation and maintenance needs.
Other Geothermal Articles:
How a Geothermal Heat Pump Decreases Your Carbon Footprint
