The key to making geothermal efficient is to upgrade the home’s envelope. Though it’s not a requirement for the tax incentives, Meadowlark Builders uses a network of trade partners to conduct energy audits. Selby then makes recommendations and does the renovations. “We go for the small stuff first, like insulation,” Selby says. “We want to make sure that the building loses as little heat as possible [before installing geothermal].”
Many of Selby’s clients are what he calls “true believers,” or “early adopters,” but, he says, “We put together a package of charts and graphs and payoff periods, and it’s hard to argue with those results. Even skeptical people realize the financial implications and they see that this is in their best interests.”
As an added incentive, Meadowlark Builders has a five-year warranty on the components and a 25-year warranty on the geothermal field (the parts buried underground) as well as a maintenance department that checks if things are working properly.
“We monitor energy efficiency for clients through a local energy company,” Selby says. As a service, he signs up clients electronically. Then, using a password, he can see the performance of their system over time. “We do want the data, but the primary purpose is marketing,” he says. “You can hire Joe-in-the-truck to install a system and leave you, or you can hire a service that’s looking out for you.” —Stacey Freed, senior editor, REMODELING.
BOTTOM LINE
A qualified geothermal heat pump nets a taxpayer a 30% tax credit. The system may be installed in a new home or as part of a remodel, and the home need not be the homeowner’s principal residence. Equipment used only for heating pools or hot tubs is not eligible. In cooperatives or condos, owners/shareholders are entitled to a tax credit based on their share of the spending.
Local Look: States Weigh In
GEORGIA: “The credit for geothermal is 35% of the cost up to $2,000,” reports Matt Hoots of The Hoots Group, a green builder in Atlanta. “This is in addition to the 30% given by the [federal] government. And some local utilities offer rebates. If you do geothermal and solar thermal — solar hot water — you can get back $2,500 from some utility companies.”
Coweta-Fayette EMC, a Georgia-based energy cooperative, offers the Touchstone Energy Home Program, which provides a $1,000 incentive for installing a geothermal heat pump on a newly built home. Originally only for new homes, EMC also began offering incentives on existing homes for equipment replaced since Jan. 1, 2009: Homeowners can receive $300 for gas to electric heat pumps; $200 for gas to dual-fuel heat pumps; $150 for heat pump replacements; $1,000 for electric to solar water heaters; and $250 for gas to electric water heaters.
To get the various Georgia credits, consumers must complete additional paperwork. “We help clients fill it out,” Hoots says. —Stacey Freed