Message from the CEO
If you're looking for an energy-efficient upgrade that saves money on your electric bills, consider a geothermal heating and cooling system. With a state tax credit back in place, this HVAC option is more affordable than ever.
Governor Reynolds recently signed HF 779 into law, which reinstated a geothermal tax credit that was eliminated in 2018. Geothermal heat pumps installed on residential property in Iowa are again eligible for a tax credit equal to 20% of the federal tax credit. With the federal tax credit set at 30% of the installation cost until the end of the year, the state tax credit is currently equal to 6% of the installation cost. This state tax credit can be applied retroactively to January 1, 2019.
We’re thankful to the Iowa Geothermal Association, State Senator Waylon Brown (District 26), and State Representative Jane Bloomingdale (District 51) for championing this cause. The Iowa Association of Electric Cooperatives also supported this initiative and organized electric cooperative advocates across the state to contact their local legislators.
WHY IS A GEOTHERMAL HEAT PUMP SO ENERGY EFFICIENT?
A geothermal heat pump is a highly efficient renewable energy technology for both residential and commercial buildings. Geothermal heat pumps are used for space heating and cooling, as well as water heating.
The technology relies on the fact the earth remains a relatively constant temperature throughout the year—warmer than the air above it during the winter and cooler in the summer. The geothermal heat pump efficiently transfers heat stored in the earth or ground water into a building during the winter and transfers it out of the building and back into the ground during the summer.
USING A GEOTHERMAL SYSTEM IS ALSO GREAT FOR YOUR WALLET!
Data from the Environmental Protection Agency shows homeowners using geothermal heat pumps save 30%–70% on heating costs and 20%–50% on cooling costs. This translates to roughly $400–$1,500 in annual savings. Installing a geothermal system involves adding an underground loop system, which makes the installation cost more expensive upfront compared to conventional HVAC systems. Homeowners can utilize federal and state geothermal tax credits to help offset these costs. ECI REC also offers rebates on geothermal equipment. Members may be eligible for ECI REC’s special Heat Plus rate of $0.0485 per kWh from October 1 to May 31.
To learn more about geothermal heat pumps and the costs involved, contact Director of Member Service Adam Albertsen at firstname.lastname@example.org or 877-850-4343, extension 503. We’ll explain the installation process and answer your questions. At ECI REC, we’re here to help you use energy wisely!