Federal and State Geothermal Heat Pump Incentives

Abstract

The Federal government and various State governments and utility organizations offer incentives for the installation of geothermal heat pump (GHP) systems. These incentives include tax credits and deductions, grants, loans and rebates, in addition to special electric rates and financing designed to offset first cost of GHP systems compared to conventional heating and cooling systems, as well as to improve the operational efficiency of electric utilities. While it is too early to assess the full impact of these incentives, industry participants project that GHP sales will increase dramatically. In order to make informed purchase decisions, potential GHP customers must understand the various incentives available. Likewise, GHP companies need to integrate these incentives into their marketing strategies and business plans in order to remain well aligned with rapidly changing market conditions.