The Geothermal Air Conditioning unit is a unit that gives plenty back overtime compared to the standard Air Conditioning Units. While at first it seems like it is more expensive, that could not be further from the truth after a little time has past. As more time progresses you end up saving money from having this unit compared to the standard Air Conditioning Units. This system uses renewable solar energy that is stored in the earth. It does not produce heat like a standard system, instead of it moves it in and out in order to control the temperature. These systems can also provide some hot water.
The traditional system costs less for initial installation compared to the Geothermal Unit. The traditional system will actually end up costing you more down the road. Yearly you will end up paying roughly 1400$ more for a system that cost about $5000 dollars less up front. In a little under 4 years you have made that up. But there are a few more incentives that make the Geothermal cost even less then advertised later in the year. Click Here to see how much you save.
The Geothermal Unit currently provides a tax deduction of up to around 26% through 2020 of the total systems cost. This deduction was originally 30%, but has dropped over the years. It is quite possible in the future this will go even lower, in 2021 it goes to 22%. This tax credit applies to your regular income taxes and alternative minimum taxes. IRS form 5695.
The Geothermal Units over time will end up saving you quite a bit, and adding the tax breaks you get you recoup the difference you would pay with a standard unit fairly quickly. One other good thing about this system is that it has a lifespan of about 25 years while a regular A/C unit will last 12-15 years, but the coils that come with the system can last up to 100 years. This means even when a new unit may be needed in the future the cost will be lower than the initial cost of the first installation.