When it comes to freeing ourselves from fossil fuels and saving money, many property owners and consumers turn to the sun and the wind for energy alternatives. An efficient, clean and renewable option, at times overlooked, is literally right beneath the ground: geothermal energy. Homeowners could well benefit and significantly reduce their carbon footprint by considering geothermal systems.
Geothermal industry representatives say that many people do not know about it or misunderstand what it is. Yet ground-source for heating and cooling are fairly simple. Temperatures of the earth ten feet below ground are consistently between 50 and 60 degrees Fahrenheit. Geothermal systems use the sustained temperature below the surface to heat or cool homes.
The U.S. Environmental Protection Agency calls geothermal heat pumps the most energy-efficient, environmentally clean, and cost-effective systems for heating and cooling various types of buildings. Geothermal energy shares some advantages with other renewable energy and has some other benefits as well: It is available 24 hours a day; the systems are long-lasting (the heat pumps typically last more than 20 years, while the underground infrastructure has a life expectancy of 25 to 50 years or more); and its operation produces negligible noise.
The use of geothermal energy is on the upswing in the U.S., and the Hudson Valley has become an active market. Homeowners’ desires to save on heating and cooling costs and move away from fossil fuels, coupled with excellent financial incentives such as rebates and federal and state tax credits, make geothermal energy an attractive option. It’s important to understand the pros and cons for potentially installing geothermal energy systems for your home.
The technology is not at all new: The first known building in the United States to use geothermal energy as a heat source was the Hot Lake Hotel in Oregon in 1907, according to the Dictionary of Energy. While solar and wind energy have dominated the renewable energy field, geothermal energy use for homes is gaining in the U.S.
“What we recognized is that it is not a technology problem at all as much as an awareness problem,” says Cam Chisholm, head of marketing for Dandelion Energy, a Mount Kisco-based geothermal energy company. Scaling the technology and making it affordable for more property owners are priorities for geothermal energy providers.
Today’s geothermal energy solutions combine underground pipes connected to a system of loops with a heat pump to warm the home. In warmer and hot months, when ambient temperatures are higher than that below the ground, the principle works in reverse: A heat pump removes heat from a building, transfers it to a liquid that goes to the ground, and disperses the heat into the ground. Residential geothermal energy does not produce electricity. Its savings for heating and cooling homes can be considerable.
Geothermal can be more environmentally friendly than solar in some ways, according to Jennifer O’Donnell of Hone Strategic, a consultant and regional planner who specializes in revitalization and conservation. Photovoltaic modules can become worn at approximately 30 years.
Dandelion claims installation of its system can save homeowners up to half their heating and cooling costs. Heating and cooling bills show what percentage savings can be achieved.
Homeowners need to weigh the significant upfront costs for installation. The potential savings need to be balanced with what a payback period for the initial installation will cost.
Rebates, tax incentives, and low-cost financing can make a significant difference in the ultimate installation tab.
Some homes are better fits for geothermal energy than others. Homeowners who heat with oil and propane often are very good candidates to install geothermal systems.
Incentives to installation include low-interest financing; rebates from utilities and governments; and tax credits from federal and state governments. Property owners can access 25 percent state tax credits up to $5000. Under the Inflation Reduction Act, an owner can get federal tax credits up to 30 percent of the cost of installing the geothermal heat pump system, including labor and equipment. This credit extends through 2034. State energy offices can distribute rebates to homeowners retrofitting or building new homes with energy improvements such as geothermal heat pumps. Half of these rebates are intended for low- and moderate-income households. Central Hudson offers a Clean Heat rebate, which the company details on its website.
Dandelion Energy had installed geothermal systems in more than 1940 homes in New York State. It figures that as of December 2023 its systems had resulted in avoiding 867,000 tons of carbon-dioxide pollution.
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