Three Reasons to Consider a Geothermal System

Geothermal systems have become increasingly popular as a more affordable, energy-efficient, and sustainable alternative to traditional heating and cooling systems. In fact, according to the United States Department of Energy, about 50,000 new geothermal heat pumps are being installed in the United States each year. 

Why is geothermal so popular?

Reason 1: You’ll save money

Utility bills can decrease from 25-70% immediately upon installation, and additional upfront costs can be recouped through savings in 5-10 years. Plus, you could be eligible for financial incentives, tax breaks, and financial assistance programs–more on that in a moment.

Reason 2: You’ll conserve energy 

Geothermal systems use 25% to 50% less electricity than traditional heating and cooling systems and don’t use any fossil fuels at all.

Reason 3: They’re reliable and durable

Geothermal systems can run for 20-25 years and the looping components can last up to 50 years. Compare that to a traditional HVAC system, which typically lasts 10-15 years.

What is a geothermal system?

Geothermal systems move heat from the ground into your home by way of a series of pipes that are installed underneath (or nearby) a building or home. The pipes use the nearly constant temperature of the ground as an exchange medium–that is, exchanging the heat of the earth with the temperature inside a home or building. 

In other words, these pipes harness heat from the ground to provide heat in the winter and cooling in the summer.

There are four basic types of ground loop systems, and the type of system you choose will depend on factors like climate, soil conditions, and land availability. Three of the four types of systems (horizontal, vertical, and pond/lake) are closed-loop systems. The fourth type is an open-loop option.

Closed-loop systems are the most popular, and work by circulating an antifreeze solution through a closed loop of pipes/tubing that is buried in the ground or submerged in water. Open-loop systems pipe clean ground water from a well or nearby aquifer to an indoor geothermal heat pump. Both systems work by utilizing the temperature of the earth to transfer energy and maintain a controlled climate indoors. 

How can geothermal heating and cooling save me money?

Legislation surrounding energy policies are constantly changing. At the time of this writing, the following credits and grants are available for North Carolinians: 

Federal Tax Credits

Under the Inflation Reduction Act (IRA) of 2022, the federal tax credit for residential geothermal system installations was increased from 26 to 30 percent, effective January 1, 2023. The 30 percent tax credit runs through 2032 and then gradually reduces until expiring in 2034.

USDA Rural Energy for America Program (REAP)

This program provides grants and loans to farmers, rural small businesses, and agricultural producers to install renewable energy systems, including geothermal systems.

Duke Energy

Duke Energy offers rebates for customers who install geothermal systems.

Database of Incentives

North Carolina Clean Energy Technology Center uses your zip code to provides information on incentives, financing options, and other resources for renewable energy systems, including geothermal systems.

If you have questions about installing a geothermal system at your property, our team is happy to help! 


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