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| Geothermal power has many local and global benefits. | Slide 65 of 122, © 2000 Geothermal Education Office | | |

http://geothermal.marin.org/geopresentation/sld065.htm
Geothermal energy offers those of us who live on the earth the ability to tap into the earth for a new, renewable source of energy. Once discovered, it was a revolutionary solution that quickly spread from one end of the planet to the other.
But as with any other solution, if you are considering geothermal energy for your home, you’ll want to take a look at the advantages and disadvantages it produces. So, to help you out, we looked around to discover some answers to your questions - “What are the advantages and disadvantages of geothermal energy?”
The Advantages of Geothermal Energy
When it comes to the advantages of geothermal energy, they are numerous.
To give you an idea of just how many there are, be sure to check out this list: * First and foremost, geothermal energy is renewable, meaning that as long as we don’t pump too much cold water into the earth -cooling off the hot rocks- the energy will just keep on coming! * Secondly, geothermal energy doesn’t produce pollution, and at the same time, it doesn’t contribute to the greenhouse effect! * The power stations for geothermal energy don’t take up a whole bunch of room, and because of this, they tend to have less of an impact on the surrounding environment. * Because geothermal energy is energy in and of itself, no outside sources of fuel are needed to keep the power houses running. * And, even better, geothermal efficiency offers an even more exciting benefit to the frugal homeowner - once you’ve built the geothermal power station, the energy is nearly, well, free! While it may require a little energy to actually run the pump, you can tap into the energy that is already being produced to handle this task! | | The Disadvantages of Geothermal Energy
As numerous as the benefits of geothermal efficiency are, there are still some drawbacks that you’ll have to face. And these disadvantages can affect any or all of the three phases of production - pre-production, production, and post-production: * Perhaps the biggest drawback when it comes to geothermal energy is that you just can’t set up a geothermal power station anywhere you want. First of all, you’ll need a location that offers just the right kind of hot rocks. Just any hot rocks won’t do, since some rocks might prove too strong to drill through. These rocks also need to be within a reasonable depth to make drilling down to them a feasible option.
Volcanic areas often provide the most geothermal efficiency. * There’s also another risk to consider - sometimes a geothermal site might, well, literally run out of steam. And when this happens, the dry spell may last for periods that reach into the decades! * The last disadvantage we’ll cover concerns the potential danger of geothermal energy. When you are drilling into the earth and steam is able to escape, other - not so friendly - things might escape too.
Hazardous gases and minerals can seep up from beneath the ground, and finding a way to safely dispose of them may prove very difficult and dangerous.
Anytime you’re considering making an energy change in your home, it’s important to weigh the pros and cons of the decisions you’ll be pondering. Geothermal energy, just like any other form of energy, poses many benefits, along with a few drawbacks. But, if you live in an area where geothermal energy is a viable solution, consider having a geothermal site builder stop by for a consultation.
As professionals in the trade, they’ll be able to offer a more thorough explanation of the risks, benefits and behind-the-scenes information about geothermal efficiency and what it can mean for you!
And, don’t forget, there’s another important and more practical use of geothermal energy in the home via geothermal heat pumps. Geothermal heat pumps are similar to other heat pumps in the sense that they take heat from an outside source and bring it inside of your home. But the difference is that geothermal heat pumps rely on the stable, even heat from the earth to provide heating, air conditioning and hot water for your home, instead of using outside air.
The costs of the equipment are slightly higher than other forms of heating, but the pay off is better in the long run. Geothermal heat pumps are far more energy efficient than furnaces or boilers, and the money you save on your energy bills will more than cover your initial investment in equipment, maintenance and operation.
By using this form of geothermal energy, you bypass many of the disadvantages and cash in on the positive aspects. And, geothermal heat pumps impact the environment even less than other methods of geothermal heating! Disadvantages about geothermal energy and geothermal heat pumps First of all I want to say that geothermal heat pumps are by far the most energy efficient, green, environmentally friendly heating and cooling source available. Now I’m an expert in residential energy efficiency so I’m well aware of solar power, it’s costs, and uses. I’m aware of gas furnaces, propane, wind power, and water power, but when it comes to the most energy efficient source available, a geothermal heat pump, or ground source heat pump, wins the price. Learn more =>

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6BENEFITSOFAGEOTHERMALHEATPUMPCOMFORTSYSTEM
1. Lower Operating Cost
The most efficient gas furnace has an efficiency rating of 94%. Geothermal delivers a 400% efficiency rating. 4 units of energy are delivered for every 1 unit of electrical energy. This does not bend the laws of physics; geothermal systems are transferring heat, not creating it by burning something. A more efficient comfort system lowers the bill significantly, up to 70%.
2. Quiet Operation
No more noisy picnics. Unlike air conditioners or heat pumps there is no outdoor unit. Geothermal units are very smooth and quiet in operation, comparable to a refrigerator. Geothermal units are also very reliable since the units are not subjected to wear and tear caused by snow, rain, ice, or vandalism.
3. Environmental Impact
The EPA and the U.S. Department of Energy recognize geothermal systems as the most environmentally friendly way to heat and cool a home. Unlike other comfort systems, geothermal does not emit carbon dioxide, carbon monoxide, or other greenhouse gasses which contribute to air quality pollution. Additionally, low electricity demand from geothermal systems help reduce peak grid demand and the need for more electric generating plants. Learn more about the enviornmental impact of a GHP.
4. Clean and Safe
There is no combustion in a geothermal heat pump; therefore there is no chance of carbon-monoxide poisoning. By adding high efficiency air cleaners with geothermal, a high indoor air quality level can be reached.
5. Life Cycle Cost
Geothermal systems are usually good for 15+ years. A typical furnace will last 7-10 years with regular maintenance. The ground loop of the geothermal system (the pipes buried in your yard) has a warranty of 50 years. The ground loop is made up of polypropylene pipe, the same pipe which is used in city gas lines.
6. Positive Cash Flow
Geothermal is an investment. For many retrofit applications and especially new construction the energy savings more than offset the cost of installation over a short period of time. Think of geothermal in terms of Net Present Value (NPV). If you install a system which produces significant cash flow savings over its lifetime with a salvage value (equal to the value of the ground loop), the NPV is almost always positive. Many people want to know the “payback” period. We often ask these individuals what the payback period is on their car, or the current payback period of their gas furnace, there is none. Geothermal will produce energy savings, which will equal and exceed the cost of the system installation over a period of time. That period of time is dependent on the situation, but with the recent 30% tax credit the period has decreased nicely. (3-8 years) Try the geothermal savings calculator to see the numbers for your home. * video series * homes series * installer series * blog series
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Residential Energy-Efficient Property Credit. A 30% tax credit for the installation of a ground source heat pump (geothermal system) with no cap was enacted in 2009. This Tax credit is available through the end of 2016. See an example of geothermal by the numbers including how the tax credit added up.
30% of Entire System - Tax Credit (not deduction)
The Tax Credit may be claimed for spending on 'Qualified Geothermal Heat Pump Property' installed in connection with a new or existing dwelling unit located in the United States and used as a residence by the taxpayer.
'Qualified Geothermal Heat Pump Property' means any equipment which -
1. Uses the ground or ground water as a thermal energy source to heat the dwelling unit or as a thermal energy sink to cool the dwelling unit, and
2. Meets the requirements of the Energy Star program which are in effect at the time the equipment is installed. (Ask your geothermal installer)
Labor costs associated with the installation of the geothermal heat pump property and any associated materials (piping, wiring, etc) are included. The residence does not have to be the primary residence.
Ductwork and emergency heat ineligible for tax credit
Please note that a notice on the IRS website from November 1, 2013, states that the distribution system and emergency heat portions of the system are not covered as part of the federal tax credit. Piping and wiring remain eligible under current guidelines.
In this amended description, the IRS states: “Only the cost of the heat exchange equipment in the ground outside the house can be eligible for the § 25D credit. The costs for the distribution system for the home and a back-up emergency heating or cooling system are not eligible for the credit because they are not incurred for qualified geothermal heat pump property.”
The tax credit can be used to offset both regular income taxes and alternative minimum taxes. If the tax credit exceeds the income tax liability, the remaining balance can be carried forward into future years.
Example Home:
Homeowner spends $26,000 total to install a new geothermal heat pump system in his/her existing home in 2011.
Tax Credit: $26,000 x 30% = $7,800.00. The actual cost the homeowner is $18,200.
State and Local Incentives are available too. Its 35% in North Carolina!
Many states have extra incentives available in addition to the federal 30%. View State & Local Incentives
Notes:
The credit does not apply on spending for equipment used solely to heat a swimming pool or hot tub.
FAQs About the Geothermal Tax Credit
Will my geothermal heat pump be eligible for the ENERGY STAR?
Yes, heat pumps with the following specifications (provided by ENERGY STAR support) can earn the ENERGY STAR. * Open Loop: >=3.6 COP; >=16.2 EER * Closed Loop: >=3.3 COP; >=14.1 EER * Direct Expansion (DX): >=3.5 COP; >=15 EER

http://www.geothermalgenius.org/thinking-of-buying/tax-credits.html

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