Industry experts are expecting the sales of geothermal heat pumps to continue to be on the rise in the next few years. This belief is due in part because of the federal tax incentives that reward installers of geothermal heat pumps with a 30 percent tax credit. This credit is due to expire in 2016. Before then, the geo industry plans to expand as much as possible with the help of the tax credits, which is believed to be the reason geothermal heat pumps have steadily risen in recent years.
With the tax credits still available, it is a good idea for to discuss the option of geothermal heat pumps to customers. Although it is a high upfront cost, the long term benefits may be attractive to certain customers.
High initial costs stemming from the expense of well drilling are keeping the installation of geothermal heat pumps out of the main stream. Clear communication about the long term benefits such as return on investment and total cost of ownership should be the focus of your conversation when introducing the topic. There are many misconceptions out there about geothermal technology and the key to clearing these up is strong, clear communication of the innovations and advancements in the industry. We recommend that contractors learn as much as they can about geothermal in order to provide their customers with valuable information.
While the tax credits have helped counteract current economic pressures, their expiration may be offset by the fact that some states are now implementing incentives of their own. States are beginning to see geothermal energy as a tool for alleviating power constraints. Geothermal is the only renewable energy that performs no matter what the weather is doing.
Still, the industry is anticipating a decline in the growth of geothermal heat pumps once the federal tax incentives expire. They are preparing for this by devising a strategy to expand the geothermal market so that the sales level is greater than it would have been if the tax credits had never taken place. Their goal is to expand the geothermal market by building on the current popularity of geothermal.