Green Real Estate in Idaho

Tucked away in the stimulus bill signed by President Barack Obama Feb. 17 is a provision that provides homeowners with an expanded tax credit for installing geothermal heat pump systems.

Previously homeowners were allowed a 30 percent credit up to $2,000 for installing geothermal systems, but new rules under the American Recovery and Reinvestment Act of 2009 remove the $2,000 cap.

These revised credits are retroactive and can be taken advantage of between January 1st through December 31st of 2016.

For those of you who may not be in the “know” about geothermal heating, the basic process is pretty straightforward.  Pipes are installed around the property, to what depth depends on the area but the most important factor is to dig well below the frost line to prevent freezing.  Once completed the underground pipes circulate water which maintains its constant temp.  When the water circulates through the heat exchanger in the house it passes over coils containing a refrigerant, which absorbs this heat.  The refrigerant is then raised to the desired temperature using pressure provided by a compressor.

In the summer time the entire process is reversed with the flip of a switch.  In a “cooling mode” the system draws warm air from the home and the heat exchanger transfers this heat into the water circulating over the coils passing it on through the system where the water is cooled as it circulates underground.  Much like the way a refrigerator works, but on a much larger scale.

Aside from the energy savings, which seem to be dramatic, the system is quiet, odorless there are almost no moving parts, just the pump.   In an effort to both conserve energy and save money geothermal heating/cooling seems like a no brainer for both builders and home owners looking to go green to save green.

You can of course read more about the changes to the tax credit here.