Earthlink GeoThermal

Geothermal Heat Pumps Eligible for Tax Credit of 30%

 

January 1, 2011

The American Recovery and Reinvestment Act of 2009, H.R.1 (the Stimulus Bill of 2009) that was signed by the President on February 17, 2009, contains long-term tax incentives to encourage the installation of geothermal heat pumps in residences. The new law, effective January 1, 2009, offers a one-time tax credit of 30% of the total investment for geothermal heat pump installations―without the limit of $2,000 that was part of the law enacted in 2008.

It should be understood that a tax credit is generally more valuable than a tax deduction of the same magnitude because a tax credit reduces the tax obligation directly, while a deduction only reduces taxable income. Therefore the reduction in tax is only a fraction of the deduction.

While it is expected to take many months for the IRS to release the updated forms and instructions for filing to claim this credit, it is expected that the credit will be treated as a refundable credit, so they not only directly reduce the amount of tax payable, they could bring a taxpayer’s tax obligation into the negative.

A tax credit of 10% of the total investment is also available without a maximum credit limit for commercial installations.

See our Tax Credits & Rebates page to learn more.

 

Tax credits and rebates

 

Federal Tax Credits

The American Recovery and Reinvestment Act of 2009, H.R.1 (the Stimulus Bill of 2009), contains long-term tax incentives to encourage the installation of geothermal heat pumps in residences. It offers a one-time tax credit of 30% of the total investment for geothermal heat pump installations.

It should be understood that a tax credit is generally more valuable than a tax deduction of the same magnitude because a tax credit reduces the tax obligation directly, while a deduction only reduces taxable income.

A tax credit of 10% of the total investment is also available without a maximum credit limit for commercial installations.

Under the IRS rules, manufacturers need to certify that specific measures are eligible. Taxpayers should obtain a copy of this certificate (see below) when buying these products from the manufacturer, contractor or retailer. Certifications need not be submitted to the IRS, but should be kept on file in case the IRS has questions.

Manufacturer’s Certification Statement (PDF, 57 KB)

 

Federal, State, Local and Utility Incentives

  • DSIRE is a comprehensive source of information on state, local, utility, and federal incentives that promote renewable energy and energy efficiency.

Lookup by state

U.S. Department of Treasury – Renewable Energy Grants

Business Tax Credit – Commercial System

Personal Tax Credit – Residential System

  • Energy Star®: Eligible consumers can receive rebates to purchase new energy-efficient appliances when they replace used appliances, and are in addition to the federal tax credit for geothermal installations. All EarthLinked geothermal heat pumps qualify.

Energy Star rebates by state

 

Financing Programs

  • Renewable Energy Equipment Leasing (REEL) provides energy efficient finance solutions for a wide variety of equipment, processes and technologies that are utilized to create more alternative sources of renewable energy. REEL is available to finance EarthLinked systems for:

commercial

residential

  • Funding Opportunities. This SECO web site lists national funding opportunities for energy efficiency, energy conservation and renewable energy projects and initiatives.
  • DOE’s Financing Solutions & Incentives. Provides useful links to energy efficiency and renewable energy financing resources for homeowners, small business, industry, utilities, state and local programs, federal building, and international projects.

U. S. Housing and Urban Development — Energy Efficient Mortgage Home Owner Guide. Additional information on an Energy Efficient Mortgage (EEM).

 

 

MACRS

Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions, possibly reducing the cost of a geothermal system by 40%.

Read more at the DSIRE website

 

 

Tax Incentives Assistance Project (TIAP)

TIAP is sponsored by a coalition of public interest nonprofit groups, government agencies, and other organizations in the energy efficiency field, and is designed to give consumers and businesses information they need to make use of the federal income tax incentives for energy efficient products and technologies passed by Congress as part of the Energy Policy Act of 2005 and subsequently amended several times.

TIAP website

 

Other Helpful Links

ENERGY STAR. Offers businesses and consumers energy efficient solutions – helping to save money while protecting the environment for future generations. Energy Star is a voluntary labeling program of the U. S. Environmental Protection Agency and the US Department of Energy that identifies energy efficient products.

 

Real-Time Energy Usage Data

Some homeowners are so excited about their EarthLinked systems and the money they’re saving on monthly heating/cooling bills that they’ve published real-time energy usage data. Here are some examples:

 

Kentucky:  In 2002, Jim Oswald installed a 4-ton EarthLinked system in his new 2,600 square foot home. The total electric cost for the home from November 2002 through November 2008 averages $74.55 monthly. The highest monthly winter heating bill is $125, and the summer cooling bill is only $75. Jim says, “I have been quite happy with the EarthLinked unit and believe very much in the value of the product.”      See results

 

 

 

Vermont:  An EarthLinked heating/cooling and DHW system is in its seventh year of operation in Vermont. The actual energy usages and operating characteristics are displayed in real-time.
 
See real-time display

 

Case studies* – residential and commercial

U.S. EPA verified 75% savings of

electrical energy and greenhouse gases

 

U.S. EPA verified 75% savings of

electrical energy and greenhouse gases

The U.S. Environmental Protection Agency’s Greenhouse Gas Technology Center conducted a 15-month test of the EarthLinked® Commercial Water Heating system performance. The test was conducted in an assisted living facility in Sun City Center, Florida.

The EPA report verifies 75% savings of electrical energy by the EarthLinked system in comparison with electric resistance water heating. By avoiding the generation of that amount of electricity, a typical EarthLinked unit avoids the emission of 7,000 pounds of carbon dioxide and 15 pounds of nitrous oxide per ton of capacity per year, which amounts to 42,000 pounds of CO2 and 90 pounds of NOX each year by a typical 6-ton capacity EarthLinked unit. That is equivalent to not burning 3,642 gallons of gasoline or 74 barrels of oil annually.

Read report summary

Read complete report

 

Residential Installations

**NET ZERO ENERGY**

Andrew Breen – Woodstock, New York

 

 

“It has worked to expectation which is great and really shows the benefits of DX. Especially with state and federal incentives, the payback will be quite short.”

The Breen residence won the 2009 American Institute of Architects Award for Architectural Design.
      Read summary

 

 

**NET ZERO ENERGY**

Dale Walker – Texas, U.S.

 

 

This Net-Zero Energy home lived up to its name for 12 months in 2011 when the Dallas area exceeded 100°F for 70 consecutive days.
”Because of the EarthLinked system and 6kW solar PV system, in 2011 we went over 12 months without an electric bill during the hottest summer ever recorded in Texas,” says homeowner Dale Walker.”
      Read summary

 

 

**NET ZERO ENERGY**

Martha’s Vineyard, U.S.

 

 

Our first Net-Zero Energy home includes a horizontal, 6-ton EarthLinked geothermal system that serves radiant space-heating loads for the Doug Rothmann home on the Vineyard.
      Read ACHR NEWS article

Jim Oswald – Kentucky, U.S.

 

In 2002, Jim installed a 4-ton EarthLinked system in his new 2,600 square foot home. The total electric cost for the home from November 2002 through November 2008 averages $74.55 monthly. The highest monthly winter heating bill is $125, and the summer cooling bill is only $75. Jim says, “I have been quite happy with the EarthLinked unit and believe very much in the value of the product.” He has even dedicated a web page to real-time monitoring results for the system.
      Read summary

 

John Cavanagh – New Hampshire, U.S.

 

“We live in a 2,600 square feet house. We are running about 40% colder this winter than last and about 12% colder than the 30-year average. So, we are putting the EarthLinked system to the test and it is passing with flying colors.”
      Read summary

 

 

Commercial Projects

Australian Square Kilometer Array Pathfinder

 

The Commonwealth Science and Industry Research Organization of Australia (CSIRO) selected an EarthLinked system to cool the electronics in a radio telescope in the desert of Western Australia. The system has been subjected to testing since September 2009 and serves as the prototype for an array of radio telescopes that will eventually consist of 3,600 systems. The EarthLinked unit uses an air coil condenser to exhaust superheat and the remaining heat is dissipated in the ground through earth loops, which is possible only because of ETI’s proprietary refrigerant flow controls.
     Read the paper presented at the
     Australian Geothermal Conference 2009

 

U.S. Army – Fort Irwin, Mohave Desert

 

The U.S. Army Rapid Equipping Force contracted with EarthLinked Technologies to demonstrate efficient space heating and cooling for a 1,800 square foot dome structure at Ft. Irwin in the high Mohave Desert, located between Los Angeles, California and Las Vegas, Nevada.
     Read summary

 

B’rush Ski Lodge – Mt. Hotham, Australia

 

The 28-year old B’rush Ski Lodge at Mt. Hotham in the Victorian Alps, 2.5 hours Northeast of Melbourne, was spending too much money for too little comfort each winter. “With the new system in place, the building has been spectacularly comfortable―unquestionably the best in its 28-year history, and it was achieved with substantially less energy,” according to Murray Neilson, a ski club member who monitored the system performance. “It has been very comfortable and universally acclaimed by all guests.”
     Read summary

 

Lapoint Chapel – Utah, U.S.

 

The Lapoint Chapel of The Church of Jesus Christ of Latter-day Saints in Lapoint, Utah replaced a coal-fired boiler with nine EarthLinked systems. Not only does a comparison of the annual heating costs show an average savings of $8,330 per year, the members of the chapel continue to appreciate greater comfort with the EarthLinked heating system.
     Read summary

 

ETI Headquarters – Florida, U.S.

 

EarthLinked Technologies’ new manufacturing and office facility has been approved as a LEED Certified Project, sponsored by the Leadership in Energy and Environmental Design program of the U.S. Green Building Council.
     Read summary

 

SERRES BENOÎT Greenhouse – Quebec, Canada

 

Technical summary of a commercial greenhouse. The total area of the greenhouses is 11,570 square feet. A 7,000 square foot production workshop is connected to the greenhouses.
     Read summary (English)
     Read summary (French)

 

Senior Care Group – Florida, U.S.

 

“The Sun Towers Retirement Community recently completed the installation and extensive evaluation of an EarthLinked Commercial Water Heating system,” says David Vaughan, President of Senior Care Group. “Based upon our customer satisfaction I am happy to act as a reference on their behalf. The EarthLinked system delivered a significant operating cost reduction, short term ROI and a positive environmental impact.”
     Read summary

Read customer letter

 

DLC Investments – New Hampshire, U.S.

DLC Investments, the owner of 142 condominium units in Claremont, NH, reduced the cost of water heating by 67-70% with EarthLinked Commerial Water Heating Systems. Performance and savings were monitored and reported by Public Service Company of New Hampshire.
      Read summary

 

Fire Station – New Hampshire, U.S.

 

Volunteer firefighters staff this 8,000 square foot fire station that has three apparatus bays, a training room, equipment room, offices and fire equipment storage with an emergency communication and management center.
      Read summary

 

Case studies* – utility sponsored and demo projects

Case studies* – utility sponsored and demo projects

 

Proven technology through utility monitoring and demonstration projects

EarthLinked Technologies has been demonstrating its products through electric utilities and independent programs since 1984, including:

2006 The U.S. Environmental Protection Agency’s Greenhouse Gas Technology Center conducted a 15-month test of the EarthLinked Commercial Water Heating system performance. The test was conducted in an assisted living facility in Sun City Center, Florida. Read report summary.
2006 A 6-ton EarthLinked Commercial Water Heating system was installed in a 12-unit condominium building to pre-heat domestic hot water in one of the buildings. The system performance was monitored by the electric utility, Public Service Company of New Hampshire. Read summary.
2003 The successful performance of EarthLinked systems using R-407C for water heating, and space heating and cooling in field tests sponsored by Connecticut Light & Power Company. Read summary.
2002 A 4-ton EarthLinked system installed in a 2,600 residential home in Kentucky with energy savings as monitored by the homeowner. Read summary.
1996 The successful operation of an EarthLinked unit began in the Concept Home of Heritage Homes in Maple Glen, PA that performs four functions: forced air heating and cooling; alternatively providing heat to a hydronic radiant in-floor heating system; and integrated domestic water heating. No other company has this capability without the use of expensive electronic controls.
1992 A project funded by Florida Power Corporation to test a standard 2-ton ASHP modified with EarthLinked Technologies’ controls at the University of Central Florida showed 10% heating and 13% cooling season efficiency improvements.
1991 The certification of a 10.4% heating efficiency gain in an ETL Testing Laboratory test of EarthLinked Technologies’ controls in an ASHP retrofit. (Testing of subsequently improved controls is anticipated to show 15% system efficiency gains in heating and cooling.)
1990 Consumers Power Co. of Michigan reported 12-month test which showed the EarthLinked system 25% more energy efficient than all other 20 Geo systems tested. Read summary.
1989 A project monitored by Lakeland Electric where the unit achieved an HSPF (Heating Season Performance Factor) of 18.1 and a SEER (Seasonal Energy Efficiency Rating) of 13.6 in 1988 resulted in The Energy Innovation Award to ECR (EarthLinked Technologies) by the Governor of Florida. Read summary..
1984 The most energy efficient water heater tested at the Florida Solar Energy Center. The EarthLinked Technologies heat pump water heater was 400% more efficient than electric resistance water heaters. Read summary.

Test sponsors

To prove the efficiency and reliability of its technology, EarthLinked Technologies has performed demonstration projects sponsored by:

  • Connecticut Light & Power, Connecticut
  • Consumers Power Co., Michigan
  • Florida Power & Light Co., Florida
  • Florida Power Corp., Florida
  • Lakeland Electric, Florida
  • National Rural Electric Cooperative
  • Oklahoma Gas & Electric
  • Public Service of New Hampshire
  • South Carolina Governor’s Energy Office

U.S. EPA

 

About our company

 

A Pioneering Spirit

EarthLinked Technologies, Inc. was established in 1980 under the pioneering spirit of its founder, Robert Cochran, P.E., an electrical engineer. His goal was to develop the simplest, most efficient means of using the solar energy stored in the shallow earth for heating water. The vision was based on the fact that almost one-half of the solar energy that strikes the earth is absorbed by it. That stored energy is a clean, local, renewable source that is free for the harvest.

Bob Cochran was an engineer in the management of an electric utility where he worked with the utility’s attorney, Hal Roberts, for ten years before they founded EarthLinked Technologies. Their entrepreneurial spirit drove the persistence and passion that is essential to the development and commercialization of new innovations in a mature market. Their professional and business ethic held the company and its distribution partners to a high standard that built a reputation of confidence and respect within the clean energy industry.

The passion, creativity and long-term dedication of the entire ETI team have enabled the company to develop significant renewable energy and efficiency innovations and satisfied customers in many countries. Those technologies have been shared and co-developed by a team of talented engineers and technical experts who have extended the inventions into products that are now operating in various applications and climates globally.

After ETI developed the system, techniques, infrastructure and national standards, the EarthLinked® system was born. Then followed 10 electric utility projects in southern and northern climates. ETI then began marketing the system and selling through dealers in the U.S. and around the world.

The system is mechanically simple, innovative and more efficient than other systems because it directly accesses renewable energy stored in the earth. The efficiency and simplicity of the system is based on proprietary technology that combines innovative refrigerant flow controls and copper-based earth loops. The results were astonishing:

  • U.S. EPA verified 75% electrical and emissions savings in Commercial Water Heating with the EarthLinked® heat pump.
  • Photovoltaic module cooling with ETI’s heat pump circuit to improve power output and deliver recovered heat for commercial water heating.

Today EarthLinked systems are saving energy and the environment in 50 states and 15 countries.

 

Clean Energy Technology

The quality of life and the future of mankind depend upon clean air, clean water and the preservation of natural resources, including energy. The earth is a closed system, a biosphere. The only resource input into the system is solar energy that reaches the earth daily. We were given only one planet to sustain us. Future generations of our families and yours are dependent upon what we pass on to them. We take that responsibility very seriously.

We recognize that our success at EarthLinked Technologies depends upon advancing cost-effective innovations that deliver high efficiency, high performance and reduce human impact upon the environment. By harvesting renewable solar directly or the energy stored in the shallow earth, ETI is providing solutions to two of the major challenges that face mankind this century—energy and the environment. Reducing fossil fuel firing and the resulting emission of greenhouse gases with the EarthLinked® system reduces the ecological impact of heating and cooling and electrical energy production.

We believe that how we keep our energy efficiency and environmental promises and what we deliver to our customers around the world creates a sustainable difference. There is a beneficial, enduring contest underway to “out-green” our competition and it benefits everyone. Succeeding at that goal is Plan “A”. There is no Plan “B”.

 

Product literature

Contact / Mailing Options

If you would like to be contacted by an authorized EarthLinked dealer or have product literature mailed to you, please complete our online Info Request form and select that option.

 

Download SPACE HEATING/COOLING literature
Data Sheet – Model Series HC & HCW: a front-back sheet that shows standard ratings for R-22 and R-407c refrigerants, and applications for each compressor unit model.
   
Data Sheet – Model Series SC, SD, SCW, SW, HW & HWW: a front-back sheet that shows standard ratings for R-22 and R-407c refrigerants, and applications for each compressor unit model.
   
Clean Renewable Energy Systems for Heating and Cooling: a 6-page folder (the “white folder”) that describes various components of the EarthLinked system, with an interior pocket for insertion of additional literature or dealer specific information.
   
Distributing Comfort with an Air Handler: a one-page info sheet that can be used stand-alone or for insertion in the white folder literature piece.
   
Earth Loop Options: a one-page info sheet that can be used stand-alone or for insertion in the white folder literature piece.
   
Radiant Floor Heating: a one-page info sheet that can be used stand-alone or for insertion in the white folder literature piece.
   
Water Heating: a one-page info sheet that can be used stand-alone or for insertion in the white folder literature piece.
   
EarthLinked The Earth-Friendly Way to Heat and Cool: a fold-up brochure that describes general features, benefits and testimonials.
   
EarthLinked Heating and Cooling Systems: a front-back fact sheet that describes general features, benefits and cost-savings charts.

 

Download COMMERCIAL WATER HEATING literature
Geothermal Water Heating – Save Up to 75% of Your Water Heating Bill: a fold-up brochure that describes general features and benefits for commercial users.

 

 

Commercial Geothermal Water Heating: a presentation folder designed to provide a customized information package that can include inserts such as a data sheet, customer testimonials or feasibility report.

 

EarthLinked Commercial Water Heating: a front-back fact sheet that describes general features and benefits.