Improve Your Comfort With a Geothermal Heat Pump
Many homeowners are looking for more energy-efficient ways to heat and cool their homes throughout the year, hoping to save money while also reducing their impact on the earth. Here we discuss how geothermal energy is a renewable replacement for more traditional home heating and cooling systems, and how you can finance the cost of geothermal installation with PACE financing.
How It Works
Geothermal power utilizes the constant temperature that exists a few feet below the earth’s surface. One of the most prevalent uses of geothermal energy is for heating a home, which is done through a heat exchanger and a series of pipes installed in the ground. These pipes travel down into the earth, where the temperature ranges from 45ºF to 75ºF, regardless of the time of year, circulating water before sending it to a second unit called a heat pump. This gives the heat pump a head start on heating or cooling the air required to keep a home comfortable and greatly reduces the energy required for year-round comfort.
Geothermal energy does not require any combustion fuel — just the electricity used to run the heat pumps and a water mixture to run through the heat exchanger (usually a suspension of water and antifreeze or refrigerant). Geothermal systems are less expensive to operate and are a more environmentally friendly way to heat and cool a home.
The advantages of geothermal energy include energy savings as well as a reduced carbon footprint by reducing energy consumption and emissions by 44% compared with air-source heat pumps and up to 72% compared with standard electric HVAC.
Geothermal systems are designed to last upwards of 25 years, which can outlast other heating and cooling systems. When you consider the unpredictable prices of natural gas, electricity, and other fuels required by your heating and cooling equipment, the savings add up.
While the costs of geothermal heat pumps average around just under $10,500, they also qualify for the Federal Investment Tax Credit (the same tax credit applied to solar electric systems). In 2022, the tax credit will be worth 26% of the project cost, meaning eligible taxpayers could save around $2,000 for a geothermal heat pump system for their home.
Financing Your Geothermal Heat Pump
The Property Assessed Clean Energy Program (PACE), allows homeowners to cover the cost of home upgrades related to energy-efficiency, renewable energy, water conservation, and safety and resiliency. Homeowners in eligible communities can finance 100% of their geothermal heat pump projects with:
- Zero upfront payments
- Low-interest rates
- Terms of up to 30 years
- Additional consumer protections
Save on your home heating and cooling costs by using the energy right under your feet. Apply online or call us 844.736.3934 to get started today!
PACE financing is subject to approval. Underwriting requirements and restrictions apply. PACE financing is secured by a lien on the subject property and often required to be repaid upon refinance or sale. PACE financing is private financing that must be repaid in full. PACE financing is not a government subsidy. Renew Financial Group LLC, a Delaware limited liability company (Renew Financial), is a private company and not a government entity. The installation or construction of property improvements financed with a PACE assessment is provided through a home improvement contractor or other third-party provider, and not by Renew Financial or a government entity. Homeowners should perform due diligence before selecting a home improvement contractor. Financing provided in California through Department of Financial Innovation and Protection License No. 60DBO-90653.
All content provided on this blog is for informational purposes only. Renew Financial makes no representations as to the accuracy or completeness of any information found by following any link on this site. Renew Financial is not a financial or home improvement advisor and information contained in this post should not be viewed as legal or financial advice.