If you are considering using geoexhange
energy for your building, home or company, you have probably already
heard about some of the many reasons why it is a good idea. The more
you know about geothermal energy, the more you can
see why it works for so many people. While it may cost you a bit more
in the beginning with installation to get a geothermal
system installed, the savings you will find in the coming years will
more than cover this.
The benefits of energy from geothermal
sources are plenty. You can help reduce global warming,
save on your energy costs and help the environment.
Because the government understands the importance of promoting geothermal
energy and heat pumps, they are offering tax breaks
to companies and organizations that choose to use geothermal
energy.
When you look at the big pictures of geothermal
energy, it only makes sense. You can save money on your bill as well as
help the environment and our future. It is no surprise really that the
government wants to encourage professionals in the industry to keep
striving to make this energy source more affordable and feasible to the
average consumer.
Geothermal energy works because it
harnesses steam and hot water from underground to operate turbines and
generate electricity. California is the largest producer of the energy
source with Nevada, coming in second. Much of the western United States
is taking part in this plan to increase the use of geothermal
energies and it is hoped that will support of things like this tax
break, it will become more commonly used in other parts of
the world as well.
These tax credits allow the companies to
manufacture more geothermal energy producing plants
and also to perform more studies and research into the industry as well
as pass those savings on to the customers making more people willing to
try geoexchange energy themselves.
The tax credits and extensions mean more
developments in the area of geothermal energy and
in a shorter period of time. This makes alternative geothermal
energy easier for the average consumer to purchase for use in their
homes and office buildings. Commercial geothermal
systems are already making a huge impact on the energy industry and
will continue to do so at an even more rapid rate with the incentive of
tax credits.
The federal government is giving Tax credits to include 30% of
the cost, with no upper limit through 2016 (for existing homes
& new construction)
Middle Tennessee Electric Membership Corporation offers
incentives for its residential customers to inhabit energy efficient
homes. A $1,000 rebate is available for customers who build new Energy
Star qualified homes. Rebates are also offered for qualifying heat
pumps and electric water heaters. Please call (615) 896-2785 to learn
more.
Below is a table of anticipated tax credits
and energy savings
for energy-efficient home improvements (as of November 2005):
|
Product
Category
|
Product Type
|
Tax Credit
Specification
|
Tax Credit
|
|
HVAC
|
Central AC
|
Split Systems:
EER >=13
SEER >= 16
Package systems:
EER >= 12
SEER >= 14
|
30% of cost, up to $1,500
Subject to a $1,500 maximum per homeowner for all
improvements combined.
|
|
Air source heat pumps
|
Split Systems:
HSPF >= 8.5
EER >= 12.5
SEER >= 15
Package systems:
HSPF >= 8
EER >= 12
SEER >= 14
|
30% of cost, up to $1,500
Subject to a $1,500 maximum per homeowner for all
improvements combined.
|
|
Geothermal heat pump
|
Same criteria as ENERGY STAR:
Closed Loop:
EER >= 14.1
COP >= 3.3
Open Loop:
EER >= 16.2
COP >= 3.6
Direct Expansion:
EER >= 15
COP >= 3.5
|
30% of the cost
|
* Source: ENERGYSTAR.gov
** The IRS will determine final tax credit
amounts. As more information becomes available, it will be
posted on our web site.
|
Tax Credits 
