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What is geothermal heating and air conditioning?

      Geothermal heating is a method of heating and cooling a building.

  It takes advantage of the natural stable warmth stored in the earth. Normally the earth temperature is around 55 °F (13 °C) at depths of 10 ft. In climates warmer than 55 °F (13 °C), this can be used to cool a building, and in colder climates (those under 55 °F or (13 °C) it can be used for warmth. This is accomplished by one of a number of methods. A heat pump uses the extracted water or transfer fluid (such as water mixed with antifreeze) as a heat source in winter and a heat sink in summer. Some heat pumps provide heating and cooling via forced air distribution, and others through the heating and/or chilling of water for radiant type systems. Some systems are used to heat domestic hot water.

      Types of geothermal heating and cooling systems:

Closed Loop.
  Loops of pipe are buried at a depth of 6 ft (2 m) and greater in the ground. Pipes are placed horizontally (buried in trenches) or buried in deep, vertically-drilled holes, often 200 ft (60 m) and greater below ground level. Water and antifreeze (or other transfer fluid) are circulated through the heat exchanger (heat pump) and back out through the loops continuously. Some closed loop systems bypass a portion of their working fluid with a thermostat to keep the source temperature stable.

Open Loop.
  Pipes draw water from a nearby water well or a shallow body of water. Once this water passes through the heat pump, it is released back to its source, generally as far from the intake as possible.

      Geothermal heating is one of the most efficient ways to heat a building.

  If you have sufficient area, the initial cost can be minimized by using a horizontal loop system. If you have limited space, then the cost rises as you need to drill wells deep enough into the earth to take advantage of the earth's temperature. It also has ongoing costs for the electricity to power the fluid circulation pump and the heat pump compressor. Otherwise, geothermal heating is much more efficient than air heat pumps and other supplemental electric heat used in warmer climates.
  It has the added benefit that it requires no burning of fossil fuels at the heating site, as opposed to systems that use natural gas or heating oil fired furnaces. But in order to achieve the most comfort, it can be paired with a natural gas heater to dramatically reduce, but not eliminate, the amount of fuel needed to heat a building.

      With geothermal cooling the process essentially works in reverse.

  Heat is transferred from the building into the ground. Traditional air conditioning transfers heat from the indoors to the outside air which is usually hotter than the temperature the system is trying to achieve indoors. Since the ground temperature at a depth of 10 ft (3 m) is about 55 °F (13 °C) and since ground transfer is more efficient than air transfer, geothermal cooling is much more efficient. Additionally, as a byproduct of the heat exchange process, a large amount of excess heat is generated. This heat can be used to heat domestic hot water before it is dissipated into the ground.

Tax Credits

Climatemaster tax-information

Form 5695 Residential Energy Efficient Property Credit (says 2,000.00 cap)
2009 version will be available late 2009 or early 2010

Form 8908 Tax Credits for Home Builders

Energy Tax Credit Tax Credit for Energy-Efficient Products GOOD NEWS! “Possible Tax Credit“ You may be eligible for a tax credit for purchasing a highly efficient air conditioner or heat pump. In August 2005 President Bush passed the Energy Policy Act of 2005 (EPACT) offering consumers federal tax creditsbeginning in January 2006 for purchasing energy-efficient appliances and products. Some customers may even be eligible for utility or state rebates. This credit should remain in effect through 2007. This includes highly efficient air conditioners and heat pumps, both conventional and geothermal, along with other appliances as defined by EPACT. Please visit the U. S. Department of Energy's web site at for further information. You may also visit the Internal Revenue Service's web site at to find out how you may benefit from these credits. Now may be the perfect time to upgrade your current system to a highly efficient geothermal heating and air conditioner system.

Pennsylvania Incentives for Renewables and Efficiency

Tax Credit Update

Energy Tax Credit Tax Credit for 2008
The only energy efficiency improvements that are eligible for a tax credit in 2008 are:
Geothermal heat pumps (30%, up to $2,000)
Solar water heaters (30%, up to $2,000)
Solar panels (30%, up to $2,000)
Small wind energy systems (30%, up to $4,000)
Fuel cells (30%, up to $1500 per .5 kW of power capacity)
You need to file IRS Tax Form 5695 with your 2008 taxes to claim this credit.

Tax credits for windows, doors, insulation, HVAC, and non-solar water heaters (that were available in 2006 & 2007) are NOT available for products installed in 2008, but they are again eligible for products installed in 2009 and 2010.

Federal Tax Credit Update

  Tax credits are available at 30% of the cost, up to $1,500, in 2009 & 2010 (for existing homes only) for:
  Windows and Doors
  Insulation
  Roofs (Metal and Asphalt)
  HVAC
  Water Heaters (non-solar)
  Biomass Stoves
  Tax credits are available at 30% of the cost, with no upper limit through 2016 (for existing homes & new construction) for:
  Geothermal Heat Pumps
  Solar Panels
  Solar Water Heaters
  Small Wind Energy Systems
  Fuel Cells
  Cars

Must be "placed in service*" from January 1, 2009 through December 31, 2010

Must be for taxpayer's principal residence

Must have a Manufacturer Certification** Statement to qualify

Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010)

Use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010

  $1,500 is the maximum total amount that can be claimed, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and windmills which are not subject to this cap, and are in effect through 2016

  If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters.

*  The IRS defines "placed in service" as when the property is ready and available for use.
** A Manufacturer’s Certification is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these Certifications on their website to facilitate identification of qualified products.
  Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.

E-mail Peter Tutak