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Geothermal Savings More Than Expected
Like many local families, Ron and Lori Thomas' family is "on the go." So when they built a new home 3 years ago, they wanted to install a high-efficient, low-maintenance heating and cooling system that was dependable and easy-to-use.
"We had heard a lot of great things about geothermal," said Ron. "It was a no-brainer to go geothermal after we did a few calculations. And it is even cheaper to operate than we expected."
Geothermal systems use the natural temperature of the earth to help heat the home in the winter and cool it in the summer. Since the earth's temperature below the surface stays fairly constant, the climate inside the home can be maintained with less energy consumption. This decreased energy consumption can translate into big money savings.
According to Teresa Keller of Keller Heating & Air Conditioning, "Customers who install geothermal units typically see 40-60% savings on their utility bills. Payback on an average geothermal system investment is between 4 and 6 years."
The Thomas' chose Keller Heating & Air Conditioning to install their ClimateMaster geothermal unit because of the good relationship they had developed with them.
"We've had a relationship with Keller for 12 to 15 years," said Ron. "They serviced our previous home and provided great service in a very timely fashion."
"They were very meticulous about our geothermal installation." Ron added,
In addition to helping you save money on monthly utility bills, geothermal systems also help you save money on taxes. Installing a geothermal system in 2010 qualifies you for a 30% federal tax credit and a property tax exemption.
Other geothermal financial incentives are provided by local electric utilities, such as Duke Energy, UDWI, and South Central Indiana REMC. Many offer some sort of rebate for installing geothermal systems.
The Thomas' also had a programmable zoned thermostat installed to further reduce costs and energy consumption. With this thermostat, different areas of the home can be set to different temperatures. Areas of the home more frequently used can be set to a more comfortable temperature than less used areas of the home.
Habitat for Humanity Builder Chooses Geothermal
As a Habitat for Humanity builder, Bob Sturm knows a thing or two about home construction and maintenance. So when his heat pump started leaking refrigerant, he weighed his options, and in the end, a geothermal system made the most sense.
Bob learned that the cost to repair his 12 year old heat pump was about the same cost to install a new energy efficient geothermal system.
After speaking with a friend who installed a geothermal system, Bob recalls, "My friend really liked his geothermal system. It's quiet – and it saves him a bunch of money on his electric bill."
Geothermal uses the natural temperature of the earth to help heat the home in the winter and cool it in the summer. Since the earth's temperature below the surface stays fairly constant, the climate inside the home can be maintained with less energy consumption.
Not only does geothermal save money on monthly utility bills, it also helps you save money on taxes. Consumers who install a geothermal system in 2010 can take advantage of a 30% Federal Tax Credit.
Additionally, the State of Indiana will provide a rebate of up to $1,000 to Hoosier homeowners who install a geothermal system in 2010. This rebate will be available until money allocated for the program runs out. Many utilities also offer some sort of rebate for installing new geothermal systems.
Bob chose a ClimateMaster geothermal system installed by Lindley Heating & Cooling because a neighbor had used them in the past and was pleased with their work.
"They did a good job running the lines for the unit. And I was really impressed with the installation of the loop. The horizontal bore did very little damage to my yard. Those guys did a great job", said Bob.
Another interesting benefit of installing geothermal is the water heating costs it can save a homeowner. Geothermal units operate with water, and that water, which is warmer than normal, can be stored in a reservoir next to a water heater. That water is then pumped into the water heater as it is needed. Since it is warm to begin with, it requires less energy to heat than cold water. This reduction in energy use translates into further savings.
Local Family Goes Green, Saves Green
Alan and Tammy Austin are environmentally conscious. And they like to save money. So when they decided to build a new home in our community, it made good sense for them to "Go Green."
The Austin's built the area's first "Green Home" and moved in on Mother's Day Weekend in 2009. They are happy with their new home, the money they are saving, and their increased energy efficiency.
Living in a "Green Home" is like gardening. One saves you money on vegetables at the grocery store, the other on your electric bill with your utility company. And both reduce your energy consumption and are environmentally-friendly.
The Austin's "Green Home" has many unique energy-saving features. For starters, their home is essentially round. This helps reduce air drafts, a primary cause of energy loss in a home. It also reduces the amount of overall exterior wall space. Less exterior wall space means that there is less area to insulate from the weather, which gives energy less space to escape from the home.
A well-designed home needs a heating & cooling system that is just as innovative.
So, the Austin's decided to install a geothermal system, the most energy-efficient and cost-effective heating & cooling system available today.
Geothermal uses the natural temperature of the earth to help heat the home in the winter and cool it in the summer. Since the earth's temperature below the surface stays fairly constant, the climate inside the home can be maintained with less energy consumption.
"Our past homes have operated on gas and heat pumps," said Mr. Austin. "Geothermal is the most efficient system you can get."
In addition to lower heating & cooling costs, the Austin's were able to take advantage of a Federal Tax Credit. This Federal Tax Credit allows homeowners to claim up to 30% of the total geothermal system cost on their Federal Tax Return and is available in 2010.
The Austin's also benefited from a rebate provided by their electric utility, Duke Energy. Most electric utilities, including Henry County REMC, Richmond Power & Light and Whitewater Valley REMC, offer some form of rebate for geothermal systems.
Additionally, the State of Indiana will provide a rebate of up to $1,000 to Hoosier homeowners who install a geothermal system in 2010. This rebate will be available until money allocated for the program runs out.
Additionally, the Austin's have saved money in water heating costs because of their geothermal unit. Warm water is collected from the geothermal system and is stored in a hot water storage tank. As it is needed, it is moved into the home's water heater. Since it is already warm, less energy is required to heat it to produce hot water.
The available geothermal tax incentives, cost savings, and energy-efficiency make the climate for geothermal right in 2010.
The Austin's selected a ClimateMaster geothermal system that was installed by Dungan Plumbing & Heating. Ed Dungan, owner of Dungan Plumbing & Heating, has been in business for 38 years and has installed geothermal units for about 30 years. Ed said, "I've handled several brands of geothermal units and ClimateMaster is far and away the best machine we've ever used."
In addition to the home's architectural design and high efficiency geothermal heating & cooling unit, the Austin's also installed Energy Star doors and windows in their "Green Home." Energy-efficient windows and doors can help prevent energy from escaping the home.
Additional features of the Austin's "Green Home" include bamboo flooring; an air purifying system; a water filtration system; R-49 damp-proof, formaldehyde-free insulation; BluWood (which prevents moisture and termites); HardiPlank siding; paperless drywall; and extra foam and blown-in insulation.
Secret Weapon for Rising Energy Costs
In 1973, a gallon of gas was $0.40 and the average cost of a new home was $32,500. And for Roger and Deanna Treesh of Auburn, the average electric bill in their new home was about $200 a month.
Today, the cost of gasoline and new homes are between 6 and 7 times higher than 1973. But for the Treesh's, their average electric bill has been cut by more than half. What's their secret? Geothermal.
Geothermal systems use the natural temperature of the earth to help heat the home in the winter and cool it in the summer. Since the earth's temperature below the surface stays fairly constant, the climate inside the home can be maintained with less energy consumption. The result? Significant savings.
"We've seen savings – big time," said Roger. "We haven't put one penny in our system since we had it installed 7 years ago. And our average electric bill this winter was only $80 a month."
Roger and Deanna chose a ClimateMaster geothermal system. Their decision was influenced by their daughter's experience with her geothermal system installed by Geothermal Sales & Service. After seeing how inexpensive her unit was to operate, their current heating method didn't make sense any longer.
Pat Hensinger, a local geothermal specialist and owner of Geothermal Sales and Service, said, "Customers who install geothermal can get their full investment back within 2-10 years from the energy savings alone."
She also added, "I can guarantee a 50% reduction in heating, cooling, and hot water costs combined if the customer switches from an existing gas, propane, or electric heating & cooling system to geothermal."
Not only does geothermal help save money on monthly utility bills, it also helps you save money on taxes. Currently, consumers who install a geothermal system can take advantage of a 30% Federal Tax Credit.
Additionally, most local electric utilities include some sort of rebate, water heater program, or financing program for customers who install geothermal units. These incentives typically apply to all geothermal installations, whether new, retrofit or replacement.
Roger and Deanna Treesh are very pleased with their system and have recommended geothermal and Geothermal Sales & Service to family members and friends.
"Most of our neighbors are on geothermal," said Deanna. "We've all seen big savings."