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Financial Advantages

400%

more efficient than conventional HVAC systems

70%

lower bills—up to $1,416 annual savings

26%

federal tax credit on new installations

Low operating and maintenance costs

Increase your home's resale value

400%

more efficient than conventional HVAC systems

70%

lower bills--up to $1,416 annual savings

26%

federal tax credit on new installations

Low operating and maintenance costs

Increase your home's resale value

Purchasing Geothermal

While installation costs tend to be higher than traditional HVAC units, flexible payment plans are available for installation. And the system can pay for itself in just three to four years. (If you were to stick with traditional HVAC, in the long run you could have paid for a geothermal system and much more.)

Pricing Information

Costs will vary by location, the size of hour home, equipment installed, and local incentives, but on average you can expect to pay between $18,000 to $30,000 for the installation, the indoor unit, and the underground loops. As a reminder, the system will end up paying for itself in three to four years.

Average savings by state

Average Savings by State

Tax Credit

Homeowners who install a geothermal system are eligible for a generous federal tax credit and could also qualify for state and utility incentives.

26%

from January 1, 2020 until December 31, 2020

22%

from January 1, 2021 until December 31, 2021

Source: energy.gov

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