Case Study: Going Green and Saving Green

The Project:

As a retired electrician and a Christmas tree farmer, Joe Cardella conducted extensive research about geothermal energy. He liked the idea of geothermal technology, but was unsure of the financial viability of heating his home with it. Amidst the process of building a new home, a friend urged him to talk to Sam Johnston of Terraclime Geothermal. “I went into our meeting convinced that a geothermal system couldn’t make sense economically,” Cardella noted. “What struck me the most was that Sam was honest, reasonable and realistic. He agreed with my calculations, but then explained how new federal tax incentives and tighter building techniques made geothermal not only possible, but a smart thing to do.”

The Results:

Terraclime Geothermal installed a 3.5 ton closed loop system for Cardella’s home, with special attention to the building’s “envelope.” A tight envelope increases the efficiency of the home and decreases the system size. For the 2010 tax year, Cardella will receive a federal tax credit of 30 percent of the total installation cost.

“The tax incentives have generated great interest in geothermal systems across the country and in areas that offer additional incentives, such as the state of Connecticut,” says Sigurd Spearing, Project Manager, Terraclime Geothermal. “The increased attention has led to further research and development, which in turn has made systems even more viable and popular.”

About the Tax Credits:

The American Recovery and Reinvestment Act of 2009 created many tax incentives for residential renewable energy solutions. Homeowners who install geothermal heating or cooling systems receive a 30 percent tax credit for systems placed in service before December 31, 2016. These tax credits differ from deductions: rather than lowering your tax liability by a percentage, the credits reduce your tax liability dollar-for-dollar, up to 30% of the installation cost.

In addition to federal tax incentives, some homeowner may also be eligible for state-specific tax incentives. Check your state's energy office website may have more information or email info@terraclimegeo.com.