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The earth absorbs almost 50% of all solar energy and remains a nearly constant temperature of 50° F to 70° F depending on geographic location. Working with an underground loop system, a geothermal unit utilizes this constant temperature to exchange energy between your home and the earth as needed for heating and cooling.
In winter, water circulating inside a sealed loop absorbs heat from the earth and carries it to the unit. Here it is compressed to a higher temperature and sent as warm air to your indoor system for distribution throughout your home.
In the summer, the system reverses and expels heat from your home to the cooler earth via the loop system. This heat exchange process is not only natural, but is a truly ingenious and highly efficient way to create a comforable climate in your home.
In October 2008, geothermal heat pumps were added to section 25D of the Internal Revenue Code, which provides a 30% tax credit for spending on qualified property placed in service through the end of 2016. The credit was made retroactive to the beginning of 2008, and was capped at $2,000. In February 2009, the $2,000 cap was removed for property placed in service after December 31, 2008.
For more information about the Federal Tax Incentives available, click here...