Homeowners who install ENERGY STAR qualified geothermal heat pumps are eligible for a 26% tax credit, including the cost of installation.
There is a 26% federal tax credit available for systems placed in service by 12/31/2022, and a 22% tax credit for systems placed in service between 01/01/2023 and 12/31/2023. Now is the time to get your new geothermal system, the tax credits are set to expire in 2024. All tax credits are on the cost of the geothermal system, including installation cost. Give us a call for more details regarding tax credits and other incentives.
Operation Modes of a Heat Pump
In Wisconsin, temperatures change drastically with the seasons. However, underground temperatures don’t change nearly as dramatically. A geothermal system, which typically consists of an indoor heat pump and a buried system of pipes called a ground loop, takes advantage of the earth’s thermal energy to provide your home with “free” energy to heat or cool your home depending on the season.
Summer Cooling Mode
In summer, the cooler earth absorbs the heat from the home, returning cooler fluid to the Bosch geothermal heat pump. This fluid is typically much cooler than the outside temperatures, providing a more efficient operation and energy savings.
Winter Heating Mode
In winter, fluid circulating through the earth loop (or well) absorbs stored heat from the ground and carries it indoors. The geothermal system compresses the heat to a higher temperature and distributes warm air throughout your home.