Federal Opportunities for Geothermal Projects
admin | June 18th, 2010 | No Comments »The Stimulus Bill signed into law by the President in February has many provisions that recognize the important contribution that the geothermal heat pump industry can make to the nation’s economic recovery.
- Geothermal heat pump systems for residential applications (new, retrofit, primary and non-primary residences) receive a 30% tax credit starting January 1, 2009 through December 31, 2016. (The $2,000 limit for the 2008 tax credit has been removed for 2009 and later years.)
- Federal facilities and military installations will receive billions for energy upgrades, and geothermal heat pumps will be an important component of those upgrades.
- Each state will receive an average of $100 million to upgrade energy efficiency in the state, the uses for that money to be determined by each state, and geothermal rebates and loans are a good use of those funds.
- Schools with receive billions for modernizing and improving energy efficiency, another very good fit for geothermal.
- All commercial and private buildings are eligible for a 10% grant in lieu of tax credit for the total cost of installing geothermal systems, the check to be written from the government to the building owner within 60 days of completion.
RESULTS OF STIMULUS PACKAGE
- The 30% residential tax credit has the effect of making geothermal systems cash flow positive at today’s energy prices in virtually every market.
- The federal, state, military and school initiatives will create hundreds of large installations calling for hundreds of geothermal heat pump units each, as well as geothermal loop field work.
- The commercial grants in lieu of 10% credits will make geothermal heat pumps very attractive to new and existing commercial enterprises in every market.