You wisely chose to explore geothermal energy with our team at HVAC Options, but now, it is time to consider if this heating and cooling system suits your budget.
Can you afford a geothermal geothermal system? How do those upfront costs compare to your long-term savings?
Let’s break it down.
What Does Geothermal Cost?
It is true that geothermal systems typically come with a higher initial cost than conventional HVAC systems like gas furnaces or air-source heat pumps.
According to This Old House, the installation cost for a geothermal system can range from $12,000 to $30,000 and sometimes more, depending on the size of the home, the system’s complexity, and local installation costs.
Forbes says the price tag can be upwards of $18,000, and Angi, the online home improvement platform, describes the cost of labor, parts, and installation as $20,000 to $25,000.
While that might seem like a significant investment, these systems have several advantages that make them long-term money savers.
What Is the Return on Investment of Geothermal HVAC?
On average, homeowners in City #1, ST#1, can expect to recoup the initial cost of a geothermal system within 10 years through savings on energy bills. Geothermal systems are highly energy efficient, reducing heating and cooling costs, which can result in significant savings over time.
Geothermal Saves on Energy Bills
One significant benefit of geothermal heating and cooling systems is the dramatic reduction in energy bills. The U.S. Department of Energy (DOE) reports that geothermal heat pumps can reduce energy use by 30 to 60 percent.
Geothermal systems deliver superior efficiency because they transfer heat rather than generate it. Over time, the savings on your utility bills will more than pay for the installation.
With a geothermal system, you tap into renewable energy stored in the ground, so your system uses less electricity. Over its lifespan, your geothermal heat pump can save you thousands of dollars on heating and cooling costs.
Geothermal Saves on Equipment Replacement
Besides saving money on energy, geothermal systems are built to last. The geothermal heat pump typically lasts 25 years, while the underground loop that transfers heat can last up to 50 years.
This longevity means fewer replacement costs and less maintenance than traditional systems, which usually require replacement every 10 to 15 years.
You can avoid frequent replacement costs and enjoy peace of mind for decades by choosing geothermal.
Geothermal Financial Incentives
You do not have to bear the entire cost of geothermal alone. Thanks to federal and state incentives, geothermal is more affordable than ever.
The federal government offers a 30 percent tax credit on geothermal systems installed between now and Dec. 31, 2032.
In addition, your local utility company may offer rebates on geothermal systems to help further reduce installation costs. At HVAC Options, we can help guide you through the process to ensure you take advantage of all available rebates and incentives.
If paying for your geothermal system upfront does not fit your budget, don’t worry. We offer flexible financing options to make geothermal ownership more accessible. We will work with you to find a financing plan that suits your needs and timeline.
Ready to Install Geothermal?
While geothermal systems come with a higher initial cost, their long-term savings in energy bills, lower maintenance needs, and extended lifespan make them a wise investment. With financial incentives and financing options available, geothermal heating and cooling is more affordable than ever.
At HVAC Options, we want you to feel comfortable with the cost of geothermal system ownership before we start any preliminary installation work at your City #1, ST#1, home. Create your geothermal journey by calling us at 777-777-7777 or request service online.
Step 1: Planning for Geothermal
Step 2: Geothermal Costs
Step 3: Geothermal Installation