Thirty Percent Tax Credit On Geothermal Heat Pumps And Solar PV
Have you thought about switching to geothermal or solar energy? Now may be the time, with 2011 tax credits making them more affordable.
Geothermal and solar energy are highly coveted as energy sources, because they take a free, renewable and clean energy source and transfer that energy into electricity for heating and cooling. Geothermal systems use the ground’s consistent temperature as an energy source, and solar uses the sun.
The federal government recognizes the value of using renewable, clean energy as fuel, and they back up that belief with tax credits to make these relatively newer systems more affordable.
A lot of energy efficiency tax credits for this year expire at the end of 2011, but not alternative energies. Geothermal and solar incentives are available through the year 2016. The tax credit is generous as well:
- Deduct 30 percent of the cost of a geothermal/solar system.
- There is no maximum limit set on the cost of the system.
To qualify for the tax credit, geothermal systems have to meet energy efficiency standards, which must be greater than 14.1 EER for a closed loop, as well as greater than 3.3 COP.
Geothermal open loop systems require an efficiency that is higher than 16.2 EER and more than 3.6 COP. (EER stands for Energy Efficiency Ratio and measures cooling efficiency, and COP stands for Coefficient Of Performance and shows the heating process’ efficiency.)
For solar PVs to qualify:
- The PVs must be used to produce electricity for the home.
- The system has to meet any fire codes and electrical codes for local requirements.
Take advantage of tax credits and get big savings on the price and installation of geothermal or solar energy systems. When you combine that with energy you’ll save on utility bills, you can see that government incentives help to make using alternative energies more than possible.
Ernst Cooling & Heating has served the Metro-East area since 1951. We are a premier Lennox dealer and have been selling geothermal systems since 1984. Call us with any questions you have about geothermal or solar energy.
Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems). For more information, click here to download our free Home Comfort Resource guide.
167 customer reviews
As winter rolls out in Metro East Illinois, it’s time to start spring cleaning. And as you’re getting your home ready for warmer days, don’t...