The newly reinstated tax credit is a positive step that further aligns geothermal as a significant energy source for the market. The tax break will drive sales in the industry and encourage people to adopt geothermal systems.
Geothermal Tax Credits Reinstated
Kyle Murray | Bosch TT
What is geothermal heating?
Geothermal energy is heat derived below the earth’s surface which can be harnessed to generate clean, renewable energy. Simply broken down, geothermal stands for heat (thermal) that is extracted from the earth (geo).
How does geothermal work? What are the components in a system?
A geothermal system, which typically consists of an indoor heat pump and a buried system of pipes called a ground loop, and/or a well system, capitalizes on the constant underground temperatures year round to provide “free” energy. Geothermal heat pumps work with the earth to create winter heat source and summer heat storage.
For more information, Bosch Thermotechnology includes an educational resource on its website under the “geothermal explained” section.
Are these systems best suited for residential or commercial applications?
Geothermal systems work for residential and commercial applications. For residential, there are more opportunities with a larger number of homes and more land mass. On the commercial side, there are fewer applications; however, both sectors benefit from geothermal heating and will see growth in both markets with the new reinstated tax credits.
What are the advantages of using a geothermal heat pump system?
Geothermal heat pump systems offer a number benefits: They provide a clean energy source by eliminating greenhouse gas emissions; promote use of renewable energy over fossil fuels, and create cost savings over time.
Another benefit is its availability; the energy is accessible throughout the year, thanks to the unlimited amount of heat generated by the earth’s core. It also has a small footprint, using less land per GWh (404m2) than coal (3642 m2) or solar PV with center station (3237 m2). Additionally, since the power is homegrown, geothermal reduces our dependence on foreign oil.
Are there climatic or geological prerequisites for efficient and economical use of geothermal heat pumps?
There are certain prerequisites that make it easier to install a geothermal system. Cost of energy is very impactful on the use of geothermal. For example, drilling through rock is less expensive than drilling through sand. It also depends on the cost of the geothermal pumps and the cost of the electricity it takes to run those pumps.
What does the tax break mean for the geothermal industry?
The newly reinstated tax credit is a positive step that further aligns geothermal as a significant energy source for the market. The tax break will drive sales in the industry and encourage people to adopt geothermal systems. Tax credits will also support the development of future technologies that help reduce the cost of ownership, allowing more consumers to own geothermal heat pumps. The increase of geothermal heat pumps will help create jobs and future industries that are sustainable without a tax credit.
What does the tax break mean for Bosch?
The tax break is a victory for Bosch Thermotechnology and the industry overall. Associations, like International Ground Source Heat Pump Association (IGSHPA), are working with Bosch and other manufacturers to help spread the word and further utilize the tools Bosch creates to show the return on investment to the homeowner faster.
What is Bosch doing to help spread the word about the reinstated tax credits?
Bosch is promoting the news on the reinstated tax credits through a number of channels including: advertising, press, posting on its website and social media pages, tradeshows and industry events. Bosch Thermotechnology is also working with other Bosch divisions to help spread the word and educate consumers about the geothermal industry.
The content & opinions in this article are the author’s and do not necessarily represent the views of AltEnergyMag
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