Many homeowners are looking for more energy-efficient ways to heat and cool their homes throughout the year, hoping to save money while also reducing their impact on the earth. What if there was a way to use the earth to heat and cool a home without having a negative impact on the environment?
Geothermal energy does just that, by combining the heat under our feet with energy-efficient heat pump technology. Here is what you need to know about how geothermal energy is a renewable replacement for more traditional home heating and cooling systems, and how you can finance the cost of geothermal installation with PACE financing.
How Geothermal Heating & Cooling Works
Geothermal power utilizes the constant temperature that exists 30 feet below the earth’s surface. One of the most prevalent uses of geothermal energy is for heating a home, which is done through a heat exchanger, a series of pipes installed in the ground. These pipes travel down into the earth, where the temperature is a consistent 55ºF, regardless of the time of year, circulating the water before sending it to a second unit called a heat pump. This constant temperature of 55º gives the heat pump a head start on heating or cooling the air required to keep a home comfortable and greatly reduces the energy required for year-round comfort.
Geothermal energy does not require any combustion fuel — just the electricity used to run the heat pumps and a water mixture to run through the heat exchanger (this is usually a suspension of water and antifreeze or refrigerant). Geothermal systems are less expensive to operate and are a more environmentally friendly way to heat and cool a home.
Geothermal Energy Advantages: Savings & Sustainability
The advantages of geothermal energy include energy savings as well as a reduced carbon footprint. It has been estimated that by upgrading their house, homeowners may save up to:
- 30-70% on heating costs
- 20-50% on cooling costs
Geothermal systems are designed to last upwards of 25 years, which outlast other heating and cooling systems that have lifespans between 12 and 18 years. When you consider the unpredictable prices of natural gas, electricity, and other fuels required by your heating and cooling equipment, the savings add up. Plus, home geothermal systems create no carbon emissions, making it a more sustainable and environmentally friendly solution to your home heating and cooling.
While the costs of geothermal heat pumps average around just under $8,000, they also qualified for the Federal Investment Tax Credit (yes, the same tax credit applied to solar electric systems). In 2020, the tax credit will be worth 26% of the project cost, meaning eligible taxpayers could save around $2,000 for a geothermal heat pump system for their home.
PACE Helps with Geothermal Cost
Geothermal heating and cooling systems qualify for the 100% upfront financing of PACE, so you can start saving on your monthly heating and cooling costs sooner rather than later.
Lock in your geothermal installation at a fixed, low-interest rate, and pay back the cost as a line item on your tax bill. If you are looking for more info on financing geothermal energy pros and cons, start a conversation with one of the Renew Financial experts today and learn more about how you can use PACE to get geothermal in your home.
