Hansberger Refrigeration Blog: Your AC Repair Resource

Ways That Geothermal Energy Can Help Your HVAC System

What’s the most efficient way to heat or cool your home throughout the year? A geothermal heat pump uses renewable energy to make your home comfortable, lowering your bills and your carbon footprint. Here’s how geothermal energy works with your HVAC system.

Energy Below Ground

No matter how hot or cold the weather is, the temperature 10 feet below ground is a constant 54 degrees. A geothermal heat pump harnesses that energy for your HVAC system.

A loop of pipe is buried underground, with water or other liquid circulated through it. In summer, that liquid absorbs heat from the air, using the ground as a heat sink. An AC cools the air the rest of the way, before it’s circulated through your home.

In winter, the liquid in the pipe uses the Earth’s constant temperature to heat the cold air. The heat pump warms the air the rest of the way, and it circulates through your home. That jump-start to the heating and cooling process from a renewable source means much less energy is used to make your home comfortable.

Tax Credits for Geothermal Energy

The drawback to a geothermal system is that it’s not cheap. Installation involves digging 10 feet into the ground in your backyard, which can cost up to $30,000. However, the savings that come from geothermal energy will more than cover the cost over time.

There are also tax incentives to offset the cost further. The federal geothermal tax credit has been extended to 2034, so if you install a geothermal system between now and 2032, you can claim up to 30% of installation fees on your tax return. If you install it in 2033, it becomes 26%, and 22% in 2034.

Arizona also has a state tax credit, wherein you can claim 30%, up to $1,200 per year, for home-energy upgrades and an additional 30%, up to $2,000 per year, for installing a heat pump.

If you’re interested in having a geothermal energy system in your home, contact us at Hansberger Refrigeration and Electric Company. We provide Yuma with quality HVAC solutions.