Heating and cooling your home accounts for over 50% of your utility bills and water heating is another 15%. Geothermal energy is up to 500% efficient! That means, for every one unit of electricity that you use, you get up to five units back. Plus, with the right equipment pairing it can even heat your water for FREE during the summer. A traditional system can’t do that! Thanks to the energy efficiency of a geothermal system, your investment can be returned to you in savings in as little as 5-10 years, depending upon the efficiency of the system that is being replaced!
The typical lifespan of a geothermal system is over 25 years. If you invest in a new, traditional heating and cooling system today, you’ll be replacing it again in about 12 years. So, double the price you’d pay now and compare it to the price of a geothermal system. It will be very competitive if you are looking to purchase a high-efficiency system.
Geothermal energy qualifies for a federal tax credit of 30% of the installed unit price. The state of Iowa also offers a 6% tax credit and a property tax abatement meaning your taxes won’t go up for 10 years due to your installed equipment. You may also qualify for utility rebates that can be up to $3000 more depending on your provider.
According to the Department of Energy, geothermal systems are the most environmentally friendly way to heat and cool your home. The installation of one geothermal system is the environmental equivalent to removing two cars from the street or planting 750 trees.