Geothermal Becoming More Affordable - How "Green" Tax Credits Have Reduced Geothermal Costs

Geothermal Systems - How Tax Credits Have Made Them Affordable

We get many questions on geothermal systems, particularly from homebuyers interested in a greener approach to their new home. Top questions include affordability and steps to installation for a geothermal system.

How Much Does a Geothermal System Cost?

A geothermal heating and cooling system in the Triangle area generally starts at about $8,000 per ton, installed. This compares to a cost of about $2,000 per ton for a traditional HVAC system.

Example Geothermal System

Just to make the numbers easy, let's look at a 3000 sq ft home. A 3000 sq ft home generally requires about a 5 ton system.

Traditional HVAC system -

5 tons at $2,000 each

$10,000 for total system - Traditional HVAC

Geothermal Heating and Cooling system -

5 tons at $8,000 each

$40,000 for total system - Geothermal Heating and Cooling

Geothermal Tax Credits

Ok, now we get to look at the tax credits. Remember, you'll want to consult a tax professional, and you will have to wait to get "refunded" for the tax credits. But the savings can be significant.

Federal Geothermal Tax Credit

30% of the cost of the Geothermal System, or $12,000 credit.

North Carolina State Geothermal Tax Credit

35% of the cost of the Geothermal System (with a cap of $8400) - $8,400 credit

Progress Energy Credit

$1200 credit

Cost of Geothermal after credits:

Original price tag = $40,000

- $12,000 Federal Tax Credit

- $8400 North Carolina State Tax Credit

- $1200 Progress Energy Credit

= $18,400 total cost.

Thus after credits, the cost is much closer to a traditional HVAC system. On average, a geothermal system saves 35% on energy costs for COOLING your home versus a standard HVAC system, and 70% on energy costs for HEATING your home versus a standard HVAC system.

Geothermal can be a great part of building green. Again, you'll want to talk with your tax professionals about how the tax credits work, but these credits have made a significant difference this year in the total cost of a geothermal system.

Considering custom building in the Triangle area? We're happy to help answer your questions - just contact us, or call 919-278-8070. We'll set you up directly with the experts, to see if a geothermal system or other energy and cost savings ideas like Energy Wise or solar are right for you!

Building green can be easy and affordable with the right builder. Ask how a green certified home can be right for you.

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Call 919-278-8070 or visit www.StantonHomes.com.

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Copyright Stanton Homes 2009. Check with a tax professional and builder for precise costs for your new home. Costs vary based on conditions and home.

How Much Does Geothermal Cost - Build On Your Lot NC