Geothermal Heat Pump Cost Savings
High efficiency and low operating costs.
There has been an explosion of interest in environmentally conscious lifestyle choices that also save homeowners and business owners money. Geothermal is a perfect example. According to the U.S. Environmental Protection Agency, Geothermal Systems are "the most energy-efficient, environmentally clean and cost-effective space-conditioning systems available."
Energy use with Geothermal is typically HALF the amount used by conventional HVAC systems. Geothermal Heat Pumps can reach 400 to 600% efficiency, in terms of energy drawn from the power grid - and have a long service life. Contact us for a specific cost-saving analysis based on your personal energy needs and the options you choose for your geothermal system.
New Geothermal Federal Tax Credits will cover 30% of residential Geothermal installations and retrofits. The Maryland Energy Administration provides up to $1,000 in grants to homeowners who install geothermal and up to $7,000 to businesses who retrofit their HVAC systems with geothermal energy.
Geothermal Heat Pump Cost Comparison
Geothermal HVAC System's Payback Period
Depending on the HVAC system they replace, the payback period (in reduced utility costs) can be as short as 5 years. As an investment, geothermal brings you 20% return. That's ten times better than putting your money in the bank. The cost of a typical system is $20,000. With all the grants and tax credits, your cost is much lower. How Can a Geothermal HVAC System Pay Dividends?
The U.S. General Accounting Office estimates that if geothermal systems were installed nationwide, they could save several billion dollars annually in energy costs and substantially reduce pollution.
Completely free hot water whenever the system is operating. Just an added bonus.
Geothermal Savings: A Financial Analysis
A Geothermal HVAC system is priceless. In fact, it's better than priceless; it pays you dividends over the lifetime of its operation. Below is a financial analysis of a geothermal heating and cooling system installation.
| Debits | Credits | ||
| 4-Ton Geothermal Heat Pump System Initial Investment | $24,000 | $24,000 |
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Less a 30% United States Federal Income Tax Credit for Geothermal Heat Pumps: |
$7,200 | $16,800 |
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Less a $1,000 State of Maryland Tax Credit (Residential, 4-tons * $500/ton) |
$1,000 | $15,800 |
|
Less an Anne Arundel County, Maryland Real Property Tax Credit |
$2,500 | $13,300 |
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Estimated Lifetime Economic Benefit CalculationEstimated Present Value Factor Calculation of 20 years of monthly energy bill savings: *Average Treasury Bill Rate of 3.80% used as discount rate.
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Estimated Present Value of Monthly Savings of $250 over twenty years would be:
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$41,981.97 |
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Geothermal heat pumps have significant cost savings and they can pay dividends with monthly energy savings throughout the lifetime of their operation.
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| Estimated PV of this Geothermal HVAC Investment after 20 years: | $28,681.97 |
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