What incentives are out there and What is My Cost?
On February 17, 2009, President Obama signed a stimulus bill (The American
Recovery and Reinvestment Act of 2009
) that made some significant changes to the
energy efficiency tax credits. The highlights are:

The maximum credit cap has been removed for the installation of a
geothermal heat pump.
This allows a
30% tax credit to the cost of expenditures for the installation of a geothermal
system, with
no maximum.

The tax credits that were previously effective for 2009, have been extended to 2016 as well.

The tax credit has been raised from 10% to 30%.

The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted
to 30% of the cost.

The $200 cap on windows has been removed.
Federal Tax Incentives

As of February 2009, A tax credit of 30% with NO MAXIMUM for Geothermal Heat
Pumps placed in service after 12/31/2008.
State of Connecticut Tax Incentives

Through the Connecticut Energy Efficiency Fund, CL&P and United Illuminating offer a
$500 per ton incentive (maximum incentive is $1,500) for the installation of Air
Conditioning and Refrigeration Institute (ARI)-rated geothermal systems.

Connecticut Energy Efficiency Fund.
Click here to find out how CEEF can save you
valuable money

Home builders are also eligible for a $2,000 tax credit for a new energy efficient
home that achieves 50% energy savings, or a $1,000 tax credit for a home
achieving 30% energy savings
Click here to find out how much you can save

Examples of Geothermal Installation Cost

New Construction of An Energy Efficient Home With A Cost Effective and
Environmentally Friendly Geothermal System

A geothermal system will not only be the most cost saving and
environmentally safe system for you and your family, it will give you the
comfort you seek in your new home. A new geothermal system would be one
of the best investments you can make to save on your future energy cost. For
a typical 1500 square foot home the cost for installation is between $30,000-
$40,000*. A new oil or gas furnace cost on average $20,000-$25,000* . When
considering all of the incentives offered from your particular state and federal
government agencies, it can cost you the same if not less. Plus, you will save
much more in the years to come.


Old Furnace Replacement To A New More Cost Effective and
Environmentally Friendly Geothermal System

geothermal heat pump. The system would be installed underground (see Q&A
for types of systems) and connected to the newly installed heat pump, creating
the cost ranges between $15,000 - $20,000*. When replacing an old furnace,
your average cost could range from $6,000- $10,000*. In considering all of the
incentives offered from your particular state and the federal government
agencies, it can cost you the same if not less. Plus, you will save much more in
the years to come.

* This is an average estimate.
Please email
nehacgeothermal@yahoo.com
for your custom quote.