What are the cost savings with a geothermal system?
Depending on the HVAC system that is replaced, the payback period (in reduced utility costs) can be as short as five years. As an investment, geothermal brings the homeowner a 20 percent return. The cost of a typical system is approximately $20,000. In addition to the new county tax credit, new Federal tax credits will cover approximately 30 percent of residential geothermal installations and retrofits. According to Earth River, geothermal systems can be evaluated from a cost savings perspective with conventional HVAC systems. Tax credit will be given for fifty percent of the cost of materials and installation, or a maximum tax credit of $2,500. Additional information on geothermal heating and cooling, as well as available tax credits, can be found at www.energy.state.md.us.
