Geothermal: Earth‐wise Energy

Is a free and renewable source of energy too good to be true? Can the earth provide a means to heat and air
condition your home or business? Welcome to Geothermal Energy. Let’s look at how Geothermal Energy is being
used for heating and air conditioning.
Environmental awareness has become an important aspect in society today. This environmental awareness has seen
itself enter into air conditioning decisions. Although not the sole factor in decisions made by homeowners and
businesses for their air conditioning needs, most individuals would choose a solution that is environmentally
friendly, economically feasible and energy efficient. What better way to meet these requirements than to use the
earth itself to help heat and cool your home or business. According to the Department of Energy and the EPA,
geothermal systems are the most environmentally friendly way to accomplish this.
Geothermal systems, and more specifically Geothermal Heat Pumps, utilize the natural properties of the Earth to
dissipate or capture heat for the water loop. No matter your location or climate variations, the temperature below
ground stays fairly consistent, between 50 F and 60 F, all year. This ground temperature is warmer than the air
above it in the winter and cooler than the air in the summer. Geothermal Heat Pumps operate in an identical fashion
to Water-Source Heat Pumps without the need for cooling towers or boilers. Depending upon cooling or heating
mode, the system will either extract heat from the air inside the space and reject it back into the earth loop
(cooling); or, heat will be extracted from the ground and distributed to the space as warm air (heating).
Geothermal Earth Loops come in several different configurations. They are classified as either Closed Loop or
Open Loop systems. Closed-loop systems circulate a water based solution through high density polyethylene
underground pipes. Closed-loop systems can be installed horizontally, vertically or in a lake. Horizontal loops are
installed in trenches and run horizontally in the trenches. Vertical loops utilize small bore holes drilled into the
ground and have the loop pipe inserted into the bores. Lake loops, on the other hand, utilize an assembly of pipes
placed at the bottom of a pond or lake to accomplish the geothermal transfer. Open loop systems pump water from
a well or surface body of water and discharge the water into another body of water or water well.
By using the earth as your means of energy transfer, Geothermal Heat Pumps operate more efficiently than ordinary
heating and air conditioning systems. With efficiencies up to 30 EER, the energy savings over a conventional air
conditioning system can be substantial. Due to the huge energy savings of Geothermal Heat Pumps, the federal
government, the State of Florida and local utilities encourage and incentivize the use of Geothermal Heat Pumps.
On February 17, 2009, President Obama signed H.R. 1, the American Recovery and Investment Act of 2009. The
Act provided specific incentives for energy efficient residential and commercial HVAC equipment. The most
aggressive incentive in the act was directed towards Geothermal Heat Pumps. The act allows for an individual
Federal Tax Credit of up to 30% of the installed cost for geothermal heat pump installations in a residence. Unlike
capping the central air conditioning tax credit to $1,500, the 30% Federal Tax Credit for geothermal does not have a
cap on the total savings. For installations on commercial applications, there is a 10% Federal Tax Credit with no
limit as well. The Act also allows for accelerated depreciation benefits and a 50% first year “bonus” depreciation
for business property placed in service between 2008 and 2009.
On top of the cost benefits provided by the H.R. 1 Act, the state of Florida recognizes the energy efficiency benefits
and provides a further incentive to add Geothermal systems into a business or home. Under Florida law, the
Renewable Energy Property Tax Exemption, HB 7135, improved real property upon which a renewable energy
source device is installed and operated is entitled to an exemption in the amount of the original cost of the device,
including the installation cost. Per Amendment 3, this exemption is authorized for 10 years on a commercial
application; but can be authorized for more than 10 years on a residential application.
Many utilities throughout the state of Florida offer rebates to homeowners and business for use of energy efficient
air conditioning systems. Although not all may offer geothermal specific system rebates, the majority of utilities
offer rebates for high SEER or EER watersource systems. FPL, for example, offers up to a $1,000 rebate to
homeowners for 19+ EER watersource systems on residential applications. With some utilities, you may also work
directly with utility account managers on commercial projects to come up with incentives specific to a geothermal
designed project. Click on the “Utility Rebates For Your Area” on www.myfloridahvac.com to provide you with
links to all the rebates offered by utilities throughout Florida.