What is a ground source heat pump?

Ground source heat pumps (GSHPs) are electrically powered systems that tap the stored energy of the greatest solar collector in existence: the earth. These systems use the earth's relatively constant temperature to provide heating, cooling, and hot water for homes and commercial buildings.

How do ground source heat pumps work?

For most residential or commercial applications, ground source heat pumps (GSHPs) can be categorized as having closed or open loops.

These loops can be installed in several ways: horizontally, vertically, or in a pond/lake. The type chosen depends on the available land areas and the soil and rock type at the installation site.

In closed loop systems, water or an environmentally approved antifreeze solution is circulated through HDPE pipes buried beneath the earth's surface.

During the winter, the fluid collects heat from the earth and carries it through the system and into the building.

During the summer, the system reverses itself to cool the building by pulling heat from the building, carrying it through the system and placing it in the ground.

Tax Credits & Incentives for Geothermal Systems

Tax credits are available for residential and commercial building owners who install geothermal heating and cooling systems.

The Energy Improvement and Extension Act of 2008 (H.R. 1424). H.R. 1424 offers a one time tax credit of 30% of the total investment for homeowners who install residential ground loop geothermal heat pump systems. For commercial systems, a 10% credit of the total investment is also available with no maximum limit.

Systems must meet or exceed current EnergyStar requirements and be installed after December 31, 2007. To take advantage of the above mentioned tax credits, systems must be installed from 2009 through 2016.

Owners can file for the credit by completing the Renewable Energy Credits subsection on their tax return forms. Please consult your own tax professional for further details.

To locate individual State incentives, please use the following link to find more information:

DSIRE (Database of State Incentives for Renewables and Efficiency)