How Geothermal Systems Can Save You Money on Utility Bills

Utility Bills

Geothermal heat pumps tap into the energy stored in the Earth to save you money on your heating and cooling bills. They can also qualify for federal, state, and utility incentives that reduce upfront costs.

A geothermal system uses a heat pump unit installed inside your home, a buried ground loop, and a heat exchanger. It transfers heat from your home to the ground during winter and summer.

Reduced Utility Bills

Intense heat underground can be harnessed to provide heating and cooling for homes and buildings. Harnessing this underground heat through technologies like geothermal systems is a great way to save on energy bills.

geothermal system uses a network of pipes, either closed loop or open loop, to extract heat from the ground and transfer it to your home for heating. During the summer, these systems absorb heat from your home and return it to the ground, helping you stay cool.

In the long run, geothermal heat pumps can reduce your utility costs, even if they are not inexpensive to install. In addition, they are eligible for federal tax credits and rebates.

Reduced Carbon Footprint

You can confidently contribute to a sustainable environment when a geothermal system is installed. Unlike fossil fuel furnaces, which can create carbon monoxide leaks, geothermal systems do not use any combustion and produce no carbon dioxide emissions.

Instead, they transfer thermal energy from a network of buried pipes to your house through air handlers and ductwork similar to other forced-air heating systems. These buried loops can be closed-loop systems, which circulate a mixture of water and antifreeze solution, or open-loop systems that draw groundwater directly from a well and return it to the ground.

Depending on your household, you may notice a slight increase in your electricity consumption with geothermal. However, many homeowners who switch to geothermal recoup their initial investment in as little as two years and then continue to save money on energy bills year after year. Because of this, installing a geothermal system is a great way to lessen your carbon footprint and contribute to the fight against global warming.

Reduced Maintenance Costs

Geothermal systems employ a network of pipes to transmit heat to and from your home via a closed or open loop system. Those pipes are either buried horizontally 4-7 feet deep or vertically 150-400 feet underground, which makes the system safe and secure from damage caused by vandalism, sabotage, or other natural occurrences.

The long lifespan of geothermal systems contributes to lower maintenance costs and less downtime. Furthermore, a geothermal heating and cooling system does not produce any noise when operating, eliminating the need for costly ductwork, compressors, and other noisy equipment in conventional HVAC systems.

Although upfront installation costs for a geothermal heating and cooling system can be prohibitive, many regions offer tax credits, rebates, or low-interest financing options to assist homeowners in making the switch to greener energy. These financial incentives and the expected energy savings can help you recoup your investment within three years.

Increased Home Value

Long-lasting, eco-friendly, and silent geothermal systems can reduce homeowners’ energy bills by up to 75%. Combined with the 30% federal tax credit on energy-efficient geothermal system installation, these systems can significantly increase your home value.

When it comes time to sell your home, potential buyers will be interested in your energy savings and may even be willing to pay a premium for a house with a geothermal system. While resale values are difficult to predict, real estate agents who are familiar with geothermal systems and local energy prices can help estimate the value of homes in your area with these upgrades.

Homeowners with geothermal systems will likely notice a significant reduction in their electric bills, especially if they previously had no air conditioning. However, it is normal for electricity usage to spike during the winter months due to heating. Your electrical usage should return to normal once the meter reads during the “true-up” month.

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