The complexity of a geothermal system also makes it more expensive to install, but tax credits help make the net cost of a geothermal system about the same as a conventional high-efficiency air source heat pump. There is a 30 percent federal tax credit and a 35 percent N.C. tax credit with some limitations. Most homeowners can have between 55 percent and 65 percent of the cost of the system paid for through these tax credits. Even with the tax credits, you still have to pay for the upfront cost of the system ranging from $20,000 to $30,000. After tax credits, typically, your net cost is about $7,000 to $12,000. And when you factor in the 50-percent-longer life expectancy of a geothermal system (even longer for the loopfield), the long-term cost relative to other heating and cooling systems is even better. Geothermal systems are also more challenging to install than standard heating and cooling systems. Some firms ask the homeowner to subcontract a portion of the loopfield installation directly with excavators or well drillers, potentially leaving the homeowner at risk if something goes wrong. We have also seen systems undersized that have left the homeowner without enough heat for the coldest days of winter when it is most needed. To ensure a successful geothermal system installation, here is a list of key points to consider: ➤
annuaL HvaC oPeraTIon CoST CoMParISonS Pre 1986 ProPAne FurnAce | $3,250
HigH eFFiciency ProPAne FurnAce | $2,275
Pre 1986 gAS FurnAce | $2,300
HigH eFFiciency gAS FurnAce | $1,700
12 Seer StAndArd HeAt PumP | $1,800
16 Seer StAndArd HeAt PumP | $1,440
loweSt oPerAtionAl coSt
geotHermAl SyStem | $925
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$2,500
$3,000
COuRTESy CLIMATE MASTER, INC.
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ENERGY USE (Kwhe) 25000
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12547
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